The discount may wary for different case. It is known that the company charges a minimum of 20 percent and a maximum of 65 percent. But don’t faint if you have heard about the Malus. It could be as high as the 105 percent. But in the case of the car being sold off, the bonus/malus does not get passed on. The buyer has to start an account once the insurance come up for renewal every year. The owner of the car gets to retain the bonus or malus on another vehicle he purchases. He can continue to claim them even for the new vehicle. Some of the risks covered are burglary, theft, riot, strike, natural calamities, flood, frost, malicious act, terrorist activity anytime in transit and damages due to accidents. But the law has stated that damages caused during certain events will not be covered. They are – depreciation, wear and tear, breakdowns, wars, nuclear accidents, drunken driving and damages caused outside the stated geographical area.

The Insurance certificate is a mandatory document to be produced when asked by a police officer. The certificate is a valid document required in case of an accident dispute. So be careful as chaotic Indian roads make it difficult to avoid the minor damages.  Car insurance is actually a armor against such damages which can some time cost you a fortune.