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Third-Party vehicle insurance policy is mandatory as per the Indian law and failure to insure your vehicle will lead to a penalty and/or imprisonment. Also, when it is your fault, you need to bear the cost of damages and injuries to the third party.
Simplest solution (it may seem too simple infact but it works) is to use Traffic cones. Most people will avoid moving them or parking near those at it does look too "official". I use the same to keep the bimmer's parking vacant when i take it out.
Leaving a Note A good first step is to leave a note on your neighbor's car. Mention that you've noticed their car in your parking spot, and ask them not to park there. Don't be accusatory in your note. Cite your lease (or other document) as the source indicating your right to use a particular spot.
If a car is parked illegally on your property in India, you can take the following steps: Contact the local police: If the car is blocking access to your property or causing a safety hazard, you can contact the local police to have the vehicle removed.
In case you could not find the person responsible for damaging your parked car, you can still get the damages covered under your car insurance policy, provided you have own damage cover.