An Overview Of Knock For Knock Agreement In Motor Insurance

As a motorist, you are probably aware that it is mandatory to have at least third-party insurance to be able to operate your vehicle on the roads in the country. You may also know that you can opt for increased coverage with a comprehensive motor insurance policy. However, what you may not have heard of is the knock for knock agreement in motor insurance. Don’t worry for many motorists are not aware of this benefit in their motor insurance policy. The knock for knock agreement is a special agreement created by the General Insurance Council for third-party claims. Read on to understand how it can benefit you as a policy owner.

What is the knock for knock agreement in motor insurance?

To understand the knock for knock agreement, let us first look at what normally happens during a claim involving a third-party. For instance, if your car has undergone damage due to another person’s fault, you will need to be compensated by their third-party insurance. However, going to court to raise your insurance claim might take a long time and prove to be stressful.

To deal with this situation, insurers in the country sign a knock for knock agreement. According to the terms of this agreement, each insurer of the two vehicles involved in the accident will agree to pay for the damages caused to their own vehicle insured and avoid taking the case to court. This way, the responsibility gets shared, and the repairs get done much more quickly.

Benefit of knock for knock agreement in India

As we can see, the knock for knock agreement can truly give peace of mind. You and your insurance provider will both save a lot of time and effort that would have otherwise been spent in lengthy court cases. Since it can be quite hard to prove another person’s fault in accidents, the knock for knock agreement truly saves you a lot of stress.

Moreover, the knock for knock agreement also aids in the quick settlement of your claim. You can get your car repaired easily and save yourself from the hassle of waiting for a settlement that could, perhaps, take months.

Is there any exclusion under knock for knock agreement?

The knock for knock agreement is only valid for claims that are raised within the geographical limits of the motor insurance policies. Moreover, the knock for knock agreement only works if you have bought comprehensive car insurance since own damages only get covered under comprehensive policy. You will also lose your no-claims bonus according to the insurer’s slab once you agree to opt for the knock for knock agreement settlement. Finally, the maximum amount that you can get a claim for under this agreement cannot be more than the insured declared value (IDV) mentioned in the policy.


The knock for knock agreement can truly prove to be helpful in saving you a lot of time and effort in a claim that involves a third party. You could speak to your general insurance company to get a proper understanding of the knock for knock agreement before you raise a claim.

Disclaimer: For more details on risk factors, terms & conditions please read sales brochure carefully before concluding a sale. *The discount amount will vary subject to vehicle specification and place of registration

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