If you are a car owner, your vehicle is probably an essential part of your daily schedule. Hence, it is very important for your car to be in the best condition possible. The type of fuel you use for your car has a great impact on its performance and condition. This, in turn, can also have an impact on your car insurance.

You might have noted that many of the fuel pumps sell two kinds of petrol. Also, if you have asked to fuel your vehicle with power petrol, you might have noted that the price is higher than regular petrol. Doesn’t it make you curious? What is the difference between petrol, are there any additional benefits of adding power or premium petrol, and why is it costlier?

 This blog will detail power and normal petrol and their differences.

What is Power Petrol?

Power petrol is a type of fuel made of the same chemical compounds as regular petrol but with higher octane levels. It is also called premium or high-octane petrol. Power petrol is developed for high-performance vehicles.

Advantages of Using Power Petrol?

There are several advantages of fuelling your vehicles with power fuel. Some of the significant benefits of using premium/power petrol are as below:

• Increase in fuel economy (average) - Adding power to petrol improves the combustion of fuel in an engine which assists your vehicle in enhancing its economy.
• Enhance the speed and power of the vehicle- When you use Power petrol, it reduces engine knocking directly, and fuel power affects the strength of the vehicle. You can get more acceleration and power using it.
• Eliminate the deposit of intake valves and fuel injectors in the engine mechanism.
• Adding power fuel will improve your driving experience as it utilizes the maximum power and speed from the fuel. Nevertheless, eliminating the use of intake valves and fuel injectors will offer you a smooth ride over your vehicle.
• Manage and direct the octane requirement increase (ORI) of your vehicle.
• Prevents the fusion of input valves, reduces engine banging, and lessens harmful exhaust emissions through silencers.

When to Use Power Petrol?

Power petrol is recommended for vehicles with high-compression engines, such as sports cars, luxury vehicles, and turbocharged automobiles. It supports the advanced performance of high-compression engines that are made to withstand high pressure and temperature.  Always consult your vehicle owner's manual to determine the appropriate fuel type. 

When to Use Normal Petrol?

For most standard vehicles with regular engines, normal petrol with an octane rating between 87 and 91 is sufficient. These engines offer efficiency with normal fuel, and using power petrol may not have any major advantages. Moreover, normal petrol is more cost-effective, making it the practical choice for everyday use.

Power Petrol vs Normal Petrol: Key Differences

The main difference between regular and power fuel is that power or premium fuels have a higher number of octane. Usually, in the country, different kinds of petrol have different numbers of octane. Regular petrol or unleaded petrol typically has octane ratings of 87. In midgrade petrol, the number of octanes varies from 88 to 90. In premium or Power petrol, there is a higher number of octane, i.e. 91 to 94.

FAQs on Power Petrol vs Normal Petrol

1. Can I use power petrol in a car designed for normal petrol?

Using power petrol in a vehicle designed for normal petrol may not offer significant benefits and could lead to increased fuel costs without noticeable performance improvements. It's best to follow the manufacturer's recommendations.

2. Will using normal petrol in a high-performance car cause damage?

Using normal petrol in a vehicle that requires power petrol can lead to engine knocking, reduced performance, and potential long-term damage. Always use the fuel type specified in your vehicle owner's manual.

3. Does power petrol improve mileage?

In certain high-performance engines, power petrol can improve fuel efficiency due to better combustion. However, in standard engines, the difference in mileage may be negligible.

4. Is power petrol worth the extra cost?

For vehicles designed to run on high-octane fuel, the benefits of power petrol can justify the additional cost. For standard vehicles, the advantages may not outweigh the higher price.

5. Can I mix power petrol and normal petrol?

Mixing power petrol and normal petrol is generally safe, but it may dilute the benefits of the higher-octane fuel. It's advisable to use the fuel type recommended for your vehicle.

Conclusion

In summary, Power petrol has more octanes than standard petrol. Several advantages are there to using Power petrol, such as improvement in fuel economy, smooth-riding, and vehicle strength. Even though it is a little costlier, the benefits outweigh the expense. Fuel efficiency not only impacts your vehicle but also affects the cost of your four-wheeler insurance. Always consult the manufacturer and do thorough research before choosing a fuel you can stick to for the best performance and long life of your favourite vehicle.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Earlier buying an insurance policy and its renewal was really a very cumbersome process. With the advent of technology, the whole procedure has become so much simpler. In fact, the majority of service providers offer the option of completing the entire buying and renewal of policies online to their customers.

While the insurance companies have their own websites where you can get this done, another option is to use third-party aggregator sites too. You can primarily use these sites to compare the various benefits offered by the insurance companies at the time of buying or renewing their car insurance policy.

What is the Grace Period in Car Insurance?

The grace period in car insurance is the additional time your insurance provider allows you to make the premium payment after the due date has passed. This is to ensure the policy doesn’t lapse. Benefits such as no-claim bonus (NCB) are available during this period. However, you cannot make any claims as the car is considered uninsured during the grace period.

What is The Duration of the Grace Period in Car Insurance?

There is no grace period after insurance expires under law. It all depends on the insurance companies. The grace period for the insurance plan may vary from 3 days to 30 days as per the terms and conditions of the policy issued by the insurance company. The customer must check about the car insurance grace period at the time of buying the insurance policy.

Benefits of Renewing Car Insurance Within The Grace Period

There are several advantages of renewing your four-wheeler insurance within the grace period-

1. You can keep the no-claim bonus or NCB.
2. The risk of an increased rate of premium is reduced.
3. You can enjoy the coverage without a break.

What Are The Consequences Of Not Renewing The Car Insurance Before Expiry?

Under the Motor Vehicles Act, driving cars on Indian roads without third-party car insurance is illegal. Such action may invite the imposition of penalties and fines. It is advisable to renew your car insurance before its expiry date. Besides the legal drawbacks, there are several other disadvantages of not renewing your car insurance policy on time-

1. Penalties by the Insurance Provider: The practice usually followed by the insurance companies is that they will charge some sort of a late payment fee if the delay is reasonable, say, within one month of the car insurance grace period.

2. Cancellation of Policy: If the delay in renewing the car insurance is excessive, then the possibility is that the insurance company may cancel the policy itself. After the cancellation of the car insurance policy by the insurance company, no claims from the car owner will be acceptable. This situation may leave the car owner exposed to legal and financial liabilities. The car owner should also not drive the car until the renewal process is complete.

3. Loss of No Claim Bonus (NCB) : Many insurance companies offer no-claim bonus car insurance for safe driving. This is a discount offered to the customers at the time of renewal of the car insurance policy. But this bonus or discount is available to the car owner only up to ninety days from the date of expiry of your car insurance.

4. Car Inspection: Some insurance companies may conduct an inspection of the vehicle if the renewal is not made within the grace period. Many insurance companies offer relaxation from such stipulations. However, it is mandatory to carry out an inspection of the vehicle if the insurance renewal is not done within ninety days of the date of expiry.

5. No Third-Party Coverage:  If the car owner is involved in any car accident after the expiry of the four-wheeler insurance but before its renewal, then there is a possibility of the owner being entangled in third-party legal hassles.

Pre-Renewal Checklist

Remember to go through this checklist at the time of policy renewal.

• The Insured Declared Value or IDV in car insurancehas to be re-evaluated against the premium charged. In this way, you will pay the best price for benefits enjoyed through the insurance coverage.
• The claims ratio of the current insurance company must be checked at the time of renewal.
• The car owner must ensure that service centres with the cashless facility are available near his locality.
• The car owner must check the discounts available for the payments he or she has to make over and above the claims made to the insurance company.

Please don’t wait for the grace period but get your renewal of the insurance policy done before the expiry date and enjoy a burdenless drive.

FAQs

1. Is there a government law regarding a grace period in car insurance?

Driving an uninsured car is an offense and can lead to penalties by traffic authorities. A grace period in four-wheeler insurance is provided by the insurer, during which the policyholder is allowed to renew the policy without any fines.

2. Will I lose my no-claim bonus (NCB) if my car insurance policy expires?

The policyholder can continue to benefit from the NCB during the grace period given by the insurance provider, beyond which all the benefits are lost.

3. Can I switch my insurance provider if my car insurance has expired?

A car owner can buy insurance coverage from one insurance company and renew with another. If the owner has not been satisfied with the benefits and services of the insurance company, the best time for the review of that policy is just before the expiry of the current insurance policy.

4. What is the grace period for an insurance policy on a new and used car?

There is no difference between the grace period for a new and used car. The difference in this additional time depends upon the terms of the policy and insurance provider.

Conclusion

Understanding and using the grace period for car insurance renewal is important to maintain continued coverage for your vehicle. Timely renewal protects you from legal and financial consequences. While a grace period is a last resort that provides a safety net in case of missed deadlines, renewing the policy long before its expiration date is advisable. Stay proactive and renew your four-wheeler insurance on time.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Your comprehensive car insurance would be able to cover repairs, personal insurance as well as third-party car insurance. However, is your comprehensive car insurance truly comprehensive? In all probability, the consumable parts of your four-wheeler wouldn’t be covered by it. Therefore including the coverage consumables in the car insurance policy would be required to cover the consumable parts of your vehicle.

What is Consumables in Car Insurance?

Consumables are those commodities that have a specific use for a limited period. Once these items are used, they may not be used again in the future. These items are required to be replaced regularly due to wear and tear. Some examples of such items are engine oil, ball bearings, nuts, bolts, washers, brake oil, screws, grease, AC refrigerant etc.

You must have realised by now that the list of consumables is a long one. Each individual item may seem to be of little importance but they all are integral to the functioning of a car.

Benefits of Consumables Cover in Car Insurance

Adding consumables cover to your car insurance has several benefits:

1. Financial Protection: By compensating for the cost of repairing or replacing the consumables, this cover reduces out-of-pocket expenses.
2. Peace of Mind: It eliminates the worry about unforeseen costs of repairs after an accident.
3. Extensive Coverage: It complements the comprehensive four-wheeler insurance, ensuring that all aspects of repair are covered.

Coverage Under Consumables Add-on in Car Insurance

Your comprehensive car insurance policy wouldn’t provide cover for the cost of consumables. Therefore you would have to pay from your pocket for replacing the consumables at the time of claims. However, a consumable cover is an add-on cover that will pay the cost of consumables in case of replacing or refiling it due to an accident.

What Are the Inclusions of a Consumables Cover?

A consumable cover would cover the following:

• Engine oil
• Gearbox oil
• Nuts and bolts
• Grease, Washers, Oil Filters, Lubricants
• Power steering oil,
• AC gas oil
• Radiator coolant and all similar items except fuel

What Are the Exclusions of Consumables Cover?

Consumables cover won’t compensate for the damages caused under the following circumstances -

• Driving without a valid licence
• Driving under the influence of alcohol or drugs
• Driving a private vehicle for commercial purposes
• Any mechanical or electrical breakdown
• You delayed informing the insurance company
• Wear and tear of the vehicle parts

Buying Consumables Cover in Car Insurance: Things to Know

One can file a claim under this add-on cover only if it is accepted under the ‘own damage’ section of one’s comprehensive car insurance policy. This would mean that the cost of consumables in car insurance of a third-party vehicle isn’t eligible for a claim.

For one’s claim to be valid, the car consumables have to be repaired within three days from the date of the accident. Therefore, one must immediately inform the insurer once the accident takes place.

This add-on is usually valid for cars that aren’t older than 5 years.

Why Buy a Consumables Cover in Car Insurance?

Imagine that you were going on a drive.

Unfortunately, your car met with an accident and needs repairs. The cost of the repairs is worth Rs 15,000. The ‘own damage’ component of the comprehensive car insurance policy that you own covers repairs worth Rs 13,000. The remaining Rs 2,000 needs to be paid for repairing or refiling various consumables such as engine oil, nuts, and bolts.

If you have a consumable cover, the entire bill of Rs 15,000 would be covered, and you wouldn’t need to spend a rupee from your pocket. Therefore, a consumable add-on augments your comprehensive car insurance policy.

How to File a Claim for Consumables Cover in Car Insurance?

Firstly, you must submit the receipts and bills charged for repairs. It is preferable that the repairs are made in a garage which is a part of your insurer’s network. If you get your car repaired at a non-network garage or don’t inform the insurer beforehand, then it is possible that your claim might be denied.

You need not worry about the policy or car details as your insurer would already have them.

What Are the Documents Required for the Consumables Cover Claim?

To file a claim on car insurance with consumables cover, make sure to have these documents with you-

1. Receipts and bills of damage repair
2. Driver’s licence
3. Car insurance policy documents
4. The Registration Certificate or RC of the vehicle

FAQs

1. Who should buy a consumables add-on cover?

People looking to reduce the cost of small damage repairs and replacements of the consumables can go for this add-on cover.

2. Will consumable cover cost extra?

Yes, the cost of consumables in four-wheeler insurance is extra. This is because it isn’t a part of a comprehensive car insurance policy. Also, it is important to note that the consumable add-on cover would differ from one car model to another.

3. How to purchase consumables cover in car insurance?

You can purchase consumables cover online or offline from your insurance provider.

4. Will consumables cover reimburse me for routine wear and tear?

No, routine damage repair costs are not covered by the consumables add-on.

5. Can I purchase consumables cover for commercial vehicles?

Yes, consumables cover can be purchased for commercial vehicles such as tourist buses and cabs.

Conclusion

Consumables cover is an add-on available with four-wheeler insurance policy and covers the repair and replacement cost of regularly consumed vehicle parts. Though optional, it is useful for protecting the owner against unforeseen expenses. Before purchasing any add-on, consider your needs and consult your insurance provider to make the best decision for your vehicle and your financial health. 

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information. 

Hypothecation may sound complicated and a bit of a tongue twister as well but it is really quite a simple concept and one that you are most likely familiar with if you have taken a car loan to purchase your desired car.

To give you a better understanding of this term used in car insurance, we devote today’s article to explain to you the concept of hypothecation and the important aspects that you need to know about hypothecation with respect to car insurance.

Hypothecation in Car Insurance Explained

It is in rare cases that a buyer makes a full upfront payment to purchase a major high value asset such as a car, the cost of which runs into many lakhs of rupees. Most people whether salaried, self-employed or having a business of their own will usually approach a bank to apply for a car loan.

A car loan allows you the dual benefit of owning and using your own car while at the same time easing out your financial burden into manageable monthly instalments or EMIs. Actually when you go in for a car loan, you don’t fully own your car. Here is where the concept of hypothecation comes in.      

Hypothecation means that the asset, against which you have taken the loan i.e. your car, will be pledged to the lender i.e. the bank that has sanctioned your car loan. It is a security measure taken by the bank where your car is pledged as a collateral security to the bank till such time as you repay the car loan in full. In case you default on your EMI payments, hypothecation gives the bank the authority to seize and take possession of your car. Hypothecation also ensures that you do not sell the car to another party until you have repaid your car loan. Hence during the period when there is an active car loan in your name, your car remains hypothecated to the lender which could be a bank or NBFC from whom you have taken a car loan.

Toyota Innova Crysta has become a household name ever since it launched in May 2016. Even before the launch of Crysta, Toyota Innova has had its fair share of capturing the market of MUVs.  Even though it faced tough competition from the market, the Toyota Innova Crysta has successfully maintained its status.

The Innova Crysta has regularly maintained its high selling status and outsold even cheaper models in the same segment. Another important factor about the Toyota Innova Crysta is its high resale value which attracts a lot of first time and used car buyers. No matter if you have a old car or a new car, always make sure to protect it with a car insurance policy.

Here are some of the factors because of which the Innova Crysta has become popular:

Level of Comfort

Toyota has made sure that the Innova Crysta scores really high on the comfort quotient. It has acres of leg-room and headroom in all the rows, and a high seating position and a well laid cabin. The third row is very spacious as it has been designed to accommodate two to three adults. There is both 7 seater and 8 seater options available for this MUV. In the 7 seater variants, the centre row gets captain seats. The front passenger seat can be adjusted from the middle row captain seat and the driver seat is completely electronically adjustable.

The Innova Crysta can take pride in its individual AC control, comfort and space, unlike many MUVs. The luggage space can also be increased by folding the last row if the need arises.

Look and Design

Toyota has certainly put in a lot of effort in designing the look of the Innova Crysta. This MUV has an indestructible build quality and extremely good design. Some features of the MUV include large sweptback projector headlamps along with LED daytime running lights, hexagonal front grille, three air-bags, middle read head rest, seat belt warning, brake assistant, speed sensing door lock, driver arm rest, etc. The Innova Crysta also has two pieces split taillights along with a rear spoiler.

Your car is like your baby. You want to look after it, protect it from every potential danger, and nurture it for as long as you decide to keep it. In spite of so much security and protection, incidents on roads will happen. For all these unforeseen moments, you will be glad that you have a solid car insurance policy to back you up.

That said, what do you do in a scenario where your beloved car is damaged beyond repair or is stolen?

Don’t lose hope right away as you, fortunately, have Return of Invoice, better known as RTI as an add-on cover.

What Is RTI In Car Insurance?

RTI is an add-on cover offered with a comprehensive car insurance plan. This can only be availed by vehicles that are new or are less than five years old. If the car is stolen or suffers irreparable damage, the insured customer has the right to claim full compensation equal to the invoice value of the car.

Benefits of RTI Add-on Cover

RTI add-on cover has a number of benefits-

1. Full Reimbursement of Invoice Value: Ensures you get back the complete amount spent on purchasing the car, including taxes and registration fees.
2. Protection Against Depreciation: Shields policyholders from the impact of depreciation, which reduces the car's market value over time.
3. Financial Security: Helps maintain financial stability by covering the gap between market value and the original price.
4. Convenience in Replacement: This enables you to replace your stolen or damaged vehicle without incurring significant additional costs.

How Does Return To Invoice Cover Work?

Having the RTI option is an investment that can help safeguard your back, especially when financial liabilities are high. By bridging the gap between the vehicle and its Insured Declared Value and the actual invoice value, you are liable to be reimbursed for the total ‘On-road’ price of the vehicle you paid when you purchased it.

When Is The Return To Invoice Cover Applicable?

Having the RTI option is an investment that can help in safeguarding your back especially in situations where the financial liabilities are high. By bridging the gap between the vehicle and its Insured Declared Value and the actual invoice value, you are liable to be reimbursed for the total ‘On-road’ price of the vehicle that you paid when you purchased it.

Generally, the RTI cost is approximately 10% more than a comprehensive car insurance plan.

Remember that insurance providers offer RTI as an add-on for vehicles until they reach an age limit that has been predefined before.

When Is The RTI Cover Not Applicable?

The Return to Invoice option is not applicable in all situations. So, when you have a dent in your car, it needs repairing, or if your windshield has a crack on it, you do not need to bank on RTI for compensation. Own Damage Cover or other add-ons like Zero Depreciation can handle these partial losses.

RTI should only be used to recover substantial financial loss as a result of irreparable car damage or if there has been a case of theft where the vehicle is no longer recoverable.

How To Calculate RTI?

You will be paying the ‘On Road’ price when you opt to buy a new car. This typically comprises of the Ex-Showroom Price Plus the Road Tax. Plus, you are also liable to pay Registration Charges, the amount of which is determined by the make or class of your car. Add everything together and you end up with an IDV figure which is less than what you initially paid.

Having an RTI as an additional cover ensures that your IDV is the same as the ‘On Road’ price that you paid. What this translates into is that if your car is stolen or damaged beyond repair, you can claim the original price as compensation that you paid for the car at the time of purchase.

On the other hand, if you choose to raise the claim under Total Loss / Constructive Total Loss or Total Theft of your car insurance plan, the insurer will compensate you with the lower of any one of these two values:

• Ex-showroom price Road tax Registration charges at the time of purchase
• In case the same model is available, then the present replacement price of the vehicle would be -> Ex-showroom price+Road tax+ Registration charges

How Much Does Return To Invoice Cost?

The cost of an RTI add-on varies based on:

• The car’s make and model.
• The insurer’s premium structure.

Generally, the RTI cost is approximately 10% more than a comprehensive car insurance plan. Remember that insurance providers offer RTI as an add-on for vehicles until they reach an age limit that has been predefined before.

Who Should Opt For A Return To Invoice Protection Cover?

RTI is particularly beneficial for:

• New Car Owners: Protects the significant investment made in a new vehicle.
• Vehicles in High-Theft Areas: Essential for residents owning cars in regions prone to vehicle theft.
• Cars in Calamity-Prone Zones: Provides financial security to individuals owning cars in areas susceptible to natural disasters.
• Expensive Cars: Ideal for luxury and high-value vehicles where depreciation is steep.

Validity of RTI

Since the add-on comes with a limited shelf life, you cannot bank on it forever. Usually, after some of your policy renewals in the first few years, your insurance provider will withdraw this benefit. This is because paying the ‘On Road’ price for an aged vehicle will convert into a financial loss for the insurance provider. The value will, of course, be more than the current market price of the car, especially if the vehicle has experienced significant wear and tear over the years.

That said, when you do raise a claim with RTI, the insurer is legally bound to pay the invoice cover in full. There are really no loopholes for evasion of any one of the charges, including one-road price, registration costs, road tax, dealer’s handling, etc., that can be bypassed in any way.

They may also offer compensation of a specific amount which is in exclusion of the car’s showroom price as mentioned in the original invoice.

Which of The Add-on Covers Is Better: ZERO Depreciation Or RTI?

Under usual circumstances, your maximum claim is limited to the IDV of the vehicle. On the other hand, RTI is a top-up option that can be used to cover the difference between the Insured Declared Value and the Invoice Value of the vehicle.

To put things into perspective, due to the annual depreciation of your car, IDV will always be less than the invoice value of your vehicle. With an RTI option in place, you can get the current on-road price. That means, even if there has been depreciation, it does not apply to you. If you want comprehensive coverage for repairs, Zero Depreciation is better. However, for maximum financial security against total loss, RTI is the superior choice. Depending on your priorities, you may even opt for both.

Things To Remember About Return To Invoice Cover

A few things to keep in mind when choosing Return to Invoice cover are-

1. Limited Availability: Offered only for cars up to 3–5 years old.
2. Annual Renewal: This must be renewed along with the base policy to remain active.
3. Premium Increase: Adds to the overall cost of your insurance premium.
4. Exclusions: Not applicable for third-party policies or partial damages.
5. Invoice Retention: Keeping the car’s purchase invoice is crucial for claims.

FAQs on RTI

1. Will there be deductions during claiming RTI?

A claim under RTI may not reimburse the full amount of your car invoice. The claim amount depends upon the terms of the policy, and it is advisable to talk to the insurer to understand the claim process.

2. Can RTI cover be bought for cars older than 3 years?

Yes, you can purchase RTI cover for a car older than 3 years if the insurance provider allows it.

3. Are accessories covered under RTI?

No, additional costs, such as car accessories, are not covered by RTI.

4. Are minor accidents covered by RTI?

No, minor damages to the vehicle are not covered by RTI.

5. What is the difference between RTI and IDV?

RTI or return to invoice is an add-on in car insurance, while IDV or insured declared value is the current market price of a vehicle declared by the owner.

6. Is RTI better than IDV?

No, the importance of both covers depends upon the situation, and both provide useful coverage to the vehicle and its owner.

7. When can I buy an RTI add-on?

You can purchase RTI add-ons while buying car insurance online. Alternatively, you can get this coverage while renewing your policy for a car that is no more than 3 to 5 years old.

8. Can I buy another add-on if I have purchased RTI?

Yes, you can modify your policy by purchasing as many add-ons as your insurer allows.

9. Is RTI cover worth it?

The value of RTI cover for your car insurance depends upon your financial needs, vehicle age and model, and the total cost of your insurance policy. Chat with the insurance provider and decide whether you need the add-on or any other riders to make your car insurance more comprehensive.

Conclusion

Return to Invoice is an add-on available with your comprehensive car insurance cover that plays a key role in saving you from receiving a claim amount much lower than the car's purchase value. While it comes with additional costs, its benefits far outweigh the expense. Carefully evaluate your needs and circumstances to decide if RTI is the right choice.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Car insurance works to cover your precious car from suffering any damages that could be caused by any kind of mishap or untoward situation such as an accident, floods, earthquake, fire, riots or any other natural calamity or man-made disaster, as well as a complete loss in case your car gets stolen. Vehicle insurance also protects you from damages or loss caused by your vehicle to a third-party.  

When you purchase vehicle insurance you naturally want o get the best possible protection for your car. One of the ways to ensure this is by having a zero depreciation cover in your car insurance policy. Zero depreciation cover is an important and beneficial add-on feature and one you should definitely include when buying car insurance.   

This article will act as complete guide to zero depreciation by covering its various aspects and how it affects your car insurance policy.

Understanding Vehicle Depreciation and Zero Depreciation

Depreciation means the loss of value of a vehicle over time, in this case your car particularly if you have bought a new car. This loss of value due to usage and normal wear and tear actually starts from the moment that you brand new car leaves the showroom. All insurance companies take into account the depreciation of the vehicle while calculating the policy premium and at the time of settling a claim.

The table below gives you an at-a-glance snapshot to understand how the loss in value or depreciation happens over time as your car gets older.

Depreciation Schedule

Zero depreciation cover in car insurance is offered as an add-on cover when you buy a comprehensive car insurance policy. Having a zero depreciation cover enables you to minimise the effects of vehicle depreciation. 

If you are driving on public roads in India, you should always carry the documents listed below. Not having any of these on your person can lead to heavy fines.

Registration certificate

This document acts as proof that you have registered your vehicle with a regional transport office. When you get a new car, you need to apply for registration at the regional transport office within 7 days of the purchase. A registration certificate is valid for 15 years, and can be renewed for a periods of 5 years. The Motor Vehicles Act, 1988 makes having a registration certificate mandatory for all motor vehicles plying on Indian roads.

PUC Certificate

A pollution under control certificate proves that your vehicle meets the emission requirements defined for motor vehicles on Indian roads. If your vehicle does not meet the pollution control norms, it is not allowed to be driven on Indian roads. To get a PUC certificate, get your car tested at any of the authorised testing centres. You could find these at most petrol pumps.

Does Your Car Insurance Policy Cover Damages Due to Flood?

Monsoon has already arrived in most parts of the country. Although, lesser people are seen on roads due to the Covid-19 pandemic, those who need to take their cars out should be ready to face water-logged conditions. As per the Meteorological Department of India, various parts of the country, including Kolkata, Delhi, and Mumbai can witness moderate to heavy rainfall this monsoon.

So, before you take your car out of the parking lot and face the wrath of this season, it’s important for you to know about a few things. First of all, you should know how to drive if it’s raining and what to do if you witness water-logged streets. Also, you must procure a comprehensive car insurance policy (if you don’t have it already) to stay financially protected against the adverse situations.

But, do you know if a comprehensive car insurance plan cover damages caused due to water ingression or flood? Is it enough to provide you an adequate coverage during the threatening monsoon season? What should you do if your car gets submerged in water? Continue reading to find answers to all such questions.

Does your car insurance policy cover damage due to water ingression?

There can be no specific answer to this question. That’s because it largely depends upon the type of car insurance policy you have purchased for your car. In case of a standalone third party car insurance, no damages will be covered by your car insurance policy as it covers only the damages sustained by an unknown third-party and not your own car.

On the other hand, a comprehensive car insurance policy may cover the damages due to water ingression or flood, but only partially. It’s because although a standard comprehensive car insurance policy provides coverage against all types of natural disasters, including flood, inundation, storm and water ingression, any damage to the car’s engine is usually excluded.

It means that the damages to the car’s body and its parts would be covered but any damage to its engine won’t be covered by a standard car insurance policy.

During the monsoon season, instances like water ingression due to flood and waterlogging on streets, hydrostatic lock or starvation of lubricants, leakage of oils etc. are very common. These incidents can cause temporary or even permanent damage to a car’s engine and gearbox.

What’s the way out?

As mentioned above, a normal car insurance policy with own-damage cover protects car’s body and other mechanical parts but it does not cover any damage to its engine or gearbox. In such cases, the car owner may have to pay for the losses out of his/her own pocket. However, there is a way through which you can get these damages covered by your car insurance policy.

What you can do is add an Engine Protection Cover to your motor insurance policy while buying or renewing it. The engine protection cover is an add-on cover or rider that you can attach to your basic car insurance policy to enhance its coverage at a nominal addition to the premium amount.

An engine protection cover provides protection against any damage to the internal parts of an insured car’s engine and gearbox, arising due to water ingression or leakage of lubricating oils. These are usually not covered by standard comprehensive car insurance policies.

You can also supplement your policy with a zero-depreciation car insurance cover. A zero-depreciation cover negates the impact of the depreciation on the insured car’s parts. It means that even if your car is five years old, you will get full compensation for any damage to the car’s engine or body, without the depreciated amount coming into the play.

Top 6 Trends Witnessed by Automobile Industry During The Pandemic

The COVID-19 pandemic wreaked havoc in the entire world since the start of 2020. The Governments of various countries, including India, were forced to implement strict lockdowns to keep the people inside their homes and control the spread of the deadly coronavirus. As a result, several industries faced severe financial slump which brought a global recession.

The Indian automobile industry too went through a very tough phase after the imposition of first lockdown in the country in March 2020. Sales figures started plummeting and inventories were mounting up for the manufacturers. As the revenues took a severe hit, the automobile sector in India went through its worst phase since 1997-98.

However, once the lockdown restrictions were eased, India’s automobile industry started emerging out of the headwinds. With rapidly increasing demand in the country for personal mobility, the sales figures started to rise once again, leading to a slow but steady recovery for the automobile sector post lockdown. ICICI Lombard allows convenient purchase and renewal of car insurance online as well as offline.

In the meantime, some ground-breaking trends were observed in various facets of the industry. Most of these trends got accelerated due to the pandemic and are now shaping the future of India’s automobile market. Let’s have a look at some top trends in automobile industry of India witnessed during the pandemic.

1. Rising preference for personal mobility

Covid-19 has changed the preferred mode of commute among most of the passengers in India. A survey by PGA labs revealed that almost 56% of people in India prefer to use a personal vehicle instead of public transport for their daily commute. This increased preference for personal mobility has led to an increase in demand for private vehicles and therefore for Motor Insurancetoo, as it is compulsory for all the personal vehicles.

2. Increasing penetration of alternative-engine powertrains

The alternative-engine powertrain has been garnering a rapid demand in the recent years, especially in the two-wheeler and three-wheeler segment. A substantial change has been noticed in the consumers’ perspective, with preference for alternative engine increasing to 49% in 2020 from 39% in 2019.

Moreover, as per a PGA labs survey, nearly 35% of car buyers are willing to pay a premium of more than ₹ 1 lakh for electric mobility. Further, favorable Government policies such as Fast Adoption and Manufacturing of Electric Vehicles (FAME-II), reduced GST rates on EVs etc., have also contributed towards an increased preference for electric vehicles among the consumers.

3. Increasing preference for connectivity features in vehicles

Though connectivity features in vehicles manufactured in India are yet to develop as compared to countries like Germany, Japan, and the USA, entry of global automotive OEMs in the Indian market has given rise to a new trend. Recent vehicles such as MG Hector, Kia Seltos, and Hyundai Venue have impressive factory-fitted connectivity features.

These cars have garnered the attention of the consumers, resulting in huge sales volumes. In the second half of 2020, Morris Garages sold 15,930 units of Hector, whereas Kia received more than 1 lakh bookings for Seltos within five months after its launch. This trend is expected to accelerate with the number of connected cars on Indian roads estimated to reach 1.7 million by 2022.

On some rare occasions, insurance companies reject car insurance claims from their customers. This is generally done when an insurer feels that the claim filed by its customer is not valid or genuine. In such a scenario, the insurance provider doesn’t pay for the damages to the insured car and the car owner must bear this cost out of his/her pocket.

Such a situation can be extremely stressful for any car owner as the repair bills can easily run into several thousand or even lakhs of rupees. Of course, you would never want yourself to be put in such a situation. But what if your car insurer rejects your claim even if you have all the genuine reasons to get it approved?

In this article, we will discuss some common car insurance claim rejection reasons and what steps you can take if an insurer rejects your car insurance claim. Read on.

Common Reasons for Car Insurance Claim Rejection

There are a number of reasons why your car insurance claim may get rejected-

Reason 1 – If your claim is found to be non-genuine

When you file a car insurance claim, your insurance provider appoints a surveyor to inspect the genuineness of your claim. The role of this surveyor is to inspect your car and the damages and determine whether it matches the accident’s narrative. If the surveyor feels that your claim is not genuine, he/she might reject your car insurance claim.

Reason 2 – Inability to produce the required documents

Another common reason for the rejection of motor insurance claims is the inability of the policyholder to produce the required documents. Usually, when a customer files a car insurance claim, insurance companies ask for some basic documents such as policy documents, a Registration Certificate (RC) of the car, FIR copy (in case of theft), driving licenses, Aadhar cards of the driver/owner, etc. If you’re not able to submit any of the documents asked by your insurance provider, your car insurance claim might get rejected.

Reason 3 – If you are found to be violating traffic rules when the accident happened

A car insurance policy provides coverage against unfortunate road accidents or natural calamities. However, it doesn’t cover the damages caused to an insured car if the driver or claimant is found to be violating traffic rules, including drinking and driving, driving without a valid driver’s license, making illegal modifications to a car, etc.

Reason 4 – Delay in filing the claim

An unnecessary delay in filing a car insurance claim can lead to its rejection. Usually, there is a deadline before which you’re required to inform your insurer about an accident and associated losses to get your claim approved. In case you fail to file your claim within this deadline, your car insurance provider might not consider your claim afterward. Therefore, it’s prudent to know about this deadline (which is usually 48 to 72 hours after the accident) and file your claim well within it.

Reason 5 – Non-renewal of car insurance policy

Insurance companies do not entertain claims made on lapsed policies. It may happen that you forget to renew your car insurance policy on time, and it expires. Now, if you meet with an accident and make a claim on your policy, it will be rejected by the insurer. Worse, your car will be considered as an uninsured vehicle and you may get fined by the traffic cops.

Reason 6- Using a private car for commercial work

If your car is registered with the insurance provider as a personal vehicle and you regularly use it for commercial purposes, this might lead to a denial of your insurance claim in case of a mishap.

Reason 7- Providing false information

Providing false or incorrect personal details while buying vehicle insurance is a major reason behind claim denials by the insurer. In some cases, people furnish incorrect information to get lower premium rates, which could raise a red flag for the insurance provider, who will mark the policy invalid.

Reason 8- Changes in vehicle accessories without informing the insurance provider

Whenever you make any additions or modifications to your vehicle, you need to inform the insurance provider before the renewal deadline of the policy. If you fail to do so or get any repairs done without the insurer's knowledge, chances are that your claim will be rejected.

Reason 9- If you were driving outside the specified geographical area

Some insurance policies provide coverage for accidents that happen within a geographical limit defined by them. Any mishaps occurring outside this radius are not covered by the insurance providers. Thus, it is advised to read all terms and conditions before buying car insurance online or offline.

Things to Keep in Mind While Claiming Car Insurance

If you need to claim your car insurance, keep these points in mind-

1. Have proof of damage: Keep photographs and additional details of the accident and the damages caused to your vehicle or third party. This is to be submitted to the surveyor sent by the insurance provider, to smoothen the claim process.
2. File an FIR for the accident: In case of mishaps involving major damages to your vehicle or the life and property of a third party, filing a police FIR is a must. Failure to do so may lead to rejection of the claim.
3. Do not repair the damages before informing the insurance provider: Do not get any repairs done without the knowledge of your insurer. According to the policy terms, the vehicle needs to be checked at the place of the accident. After the car has been inspected, send it to a network garage or any other repair shop and start the claim procedure.

Tips to Prevent Car Insurance Claim Rejection

Here are a few tips that will minimise the risk of claim rejection-

1. Always renew the policy before the deadline: Do not wait till the last date, and renew your car insurance before it expires to enjoy the benefits without a break.
2. Provide all necessary documents: Be prepared with all the originals and copies of the required documents to ensure your claim is not rejected due to incomplete documentation.
3. Read all terms and conditions: Go through your car insurance documents and familiarise yourself with all the policy clauses.

FAQs

1. What should I keep in mind while buying car insurance online?

Buying car insurance online is quite easy these days. However, it is advisable to compare the policies and choose the best one for your vehicle. Buy your car insurance from the official portal of a trusted insurance provider to avoid any complications in the future.

2. How to challenge a claim denial?

If you’re not satisfied by the claim denial, you can raise a dispute by writing to the Insurance Regulatory and Development Authority of India (IRDAI) and the Third-Party Administrator (TPA). After receiving your dispute letter, a tribunal court may be set up to decide whether the insurer should approve your claim or not, and how much compensation you should receive.

3. How to renew car insurance online?

Visit the online portal of your insurance provider and in the car insurance section, find “renewals” and provide your insurance policy number and other details. Follow the instructions and make the fee payment to confirm the renewal of your policy.

4. When does the car insurance become invalid after its expiry date?

A car insurance policy becomes invalid the moment it expires. So, if your policy has expired on 1 March 2025, it becomes invalid from the same date.

5. Can I renew my car insurance after its expiration without an inspection?

The need for a car examination depends upon the insurance provider. If the policy has expired for a long time, the insurer may insist upon an inspection before starting the renewal process.

Conclusion

Car insurance is an essential protection for your financial well-being, but the approval of a claim depends upon several factors. In this blog, we have mentioned the common reasons why an insurance claim may get denied and how you can make the claim procedure smoother. Keep your policy updated and have clear communication with the insurer by providing correct information and adhering to the terms and conditions of the policy. With the right approach, you can avoid the risk of insurance claims getting denied and enjoy the benefits of your car insurance policy.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Buying a car is like a dream come true for many. It provides them with a feeling of pride, luxury, and achievement. After all, a person spends a considerable chunk of his/her savings to buy a car and keep it in top condition. That is why every responsible car owner chooses to get financial security for his/her car with a comprehensive car insurance policy.

However, despite all the precautions you take for your car, you can never rule out the possibility of an unforeseen mishap such as fire, theft, road accident, etc. These incidents can either damage your car partially or can lead to its total loss, in which case you must mandatorily cancel your car’s Registration Certificate (RC).

Why Should You Cancel Your RC Before Scrapping Your Old Car?

In case of a total loss of a car, the insurance company pays the IDV to the car owner and sells the remains of the car to a scrap dealer. The scrap dealer then breaks down the remains of the car into small pieces and uses them for the purpose of recycling. After the car is scrapped, the car owner needs to get the registration certificate of his/her car cancelled.

As per Section 55 of the Motor Vehicles Act of 1988, it is the responsibility of the car owner to cancel the RC of his/her car after scrapping it. He/she needs to inform the RTO about the scrapping of the car within 14 days to get its RC cancelled.

Documents Needed for Vehicle RC Cancellation Online

The following documents are needed for the cancellation of vehicle RC online-

1. A declaration from the owner stating that the car is being demolished
2. Car insurance policy documents

In addition to these documents, you must have the payment receipt for the processing fee for RC cancellation. The fee amount and additional documents can differ from one RTO to another; thus, consulting the RTO officials at the beginning of the formalities is advisable.

Steps to the Cancellation of RC of Vehicle

Below are the steps by which you can cancel the RC of your car:

1. Click photos of your scrapped car
2. Get an affidavit stating that your car has been scrapped
3. Inform the RTO about the scrapping of your car
4. Submit all required documents to the RTO
5. The RTO will obtain a clearance certificate from your local police station
6. You will be informed about the cancellation of your car’s RC
7. The RTO will cancel your car’s RC, and you will be provided with a non-utilisation certificate for your car

Benefits of RC Cancellation of Your Car Before Scrapping It

Below are the reasons why it is beneficial to cancel your car’s RC before scrapping it-

Prevent its misuse by fraudsters

In case of a total loss of a car, it is sold to a scrap dealer and can never be used again by the owner. In case the RC of the car is not cancelled after it is scrapped, it can be used by criminals and fraudsters to give a new identity to a stolen vehicle and use it for illegal activities.

Prevent vehicle theft

When you fail to cancel your car’s RC, vehicle thieves get a chance to change the identity of a stolen vehicle by forging its engine and chassis number. As a result, they get motivated to steal more cars. However, such activities can be prevented to an extent by cancelling your car’s RC.

Avoid legal troubles

As mentioned above, it’s the responsibility of the car owner to get the RC of his/her car cancelled after its scrapping. In case you fail to do so, a fraudster can use your car’s identity for a car that’s used for criminal purposes. This may bring serious legal troubles for you in future.

FAQs

1. What is total loss of a car?

As per motor insurance terms, total loss of a car refers to a situation where it gets damaged to such an extent that it cannot be repaired again. Or, if the cost of repairing a car is more than its Insured Declared Value (IDV), the car is said to be in a state of total loss. In such cases, the insurance company pays the full IDV of the car to its owner and sells the car to a scrap dealer.

The total loss of a car can take place due to an unforeseen mishap, such as road accident, earthquake, flood, tsunami, fire, theft, etc.

2. What is the registration certificate of a car?

The Registration Certificate or RC of a car is an official document that is provided to the car owner after its registration. A car’s RC basically states that it is registered with the Indian Government and is, hence, fit to be driven on roads. It contains the unique registration number of a car, its engine and chassis number, name of the car owner, and the expiry date of the RC.

You can get your car’s RC either from the Regional Transport Office (RTO) where you’ve registered your car or you can download it from the Government’s “Parivahan Seva” portal.

As per the Motor Vehicles Act of 1988, a car insurance policy is mandatory for all motor cars running on Indian roads. As per the latest amendment to the act, driving a car without a valid car insurance policy can attract a penalty of up to ₹ 2,000 or imprisonment of up to 3 months or both. Hence, non-renewal of your car insurance in time can bring not only legal hassles but also financial risks.

However, purchasing or renewing your car is not that easy. You need to make a number of decisions such as the type of policy you want to purchase, the selection of add-on covers, choosing the insurance provider, etc. In order to make an informed decision, you need to be aware of the different terms and jargon related to car insurance policies.

One such term is the “Break-in Period” in a car insurance policy. In this article, we’ve tried to elucidate what exactly a break-in period in car insurance and why it is important for you to know about this term before buying a car insurance policy. Let’s get started.

What is a break-in period in car insurance?

A car insurance policy is an annual contract that needs to be renewed every year. If you look at the policy document carefully, you will find that the date from which the insurance cover came into effect and the date at which it will terminate is clearly mentioned in the document. To ensure legal compliance, you need to renew your car insurance policy before this expiry date.

However, due to your busy schedule, you may sometimes forget to renew your car insurance policy in time. And if you miss the deadline to renew the policy, even by a day, it results in a break in the policy. However, most insurers allow a 90-day grace period to renew your car insurance policy. By renewing your policy within this period, you won’t lose the No-Claim Bonus benefit. You may still have to go through car inspection depending on your insurance company policy.

The time period between the last date for the renewal of your car insurance policy and the date on which it is actually renewed is known as the “Break-in Period” of the policy. For example, if your policy renewal date is 1^st March and you renew your policy on 15^th April, then there will be a 45-day break in the policy, which will be known as the break-in period.

Your car insurance policy remains inactive during the break-in period and any financial or legal liabilities arising during this time will have to be borne by you.

Consequences of not renewing car insurance during the break-in period

It’s crucial to renew your car insurance policy on time and avoid any break in the policy. It’s because it can bring in several legal as well as financial hassles.

• No third-party cover

As per the Motor Vehicles Act, a valid third-party motor insurance cover is mandatory for every vehicle running on Indian roads. If you don’t renew your car insurance policy on time, it will leave you without third-party cover. And if you’re caught driving a car without a valid third-party insurance cover, you may be penalised with a fine of ₹ 2,000 by the traffic cops.

Moreover, if your car gets involved in an accident during this period and causes damages to a third party, you will have to bear the entire legal and financial liability out of your own pocket.

• No own damage cover

While an Own Damage (OD) cover is not mandatory, it is highly recommended for every car owner. It provides financial security to the vehicle against the damages caused by mishaps such as collision, theft, vandalism, fire, natural disasters, etc.

If you don’t renew your OD cover in time, your car will get exposed to financial risks and in case it meets with an accident, you may have to pay for the loss out of your own pocket.

• No-claim Bonus

No-claim bonus (NCB) is the benefit given by the insurance providers to the policyholders for every claim-free year. This benefit is given in the form of a discount at the time of policy renewal. If you fail to renew your policy within the due date, you stand a chance of losing your accumulated NCB. However, if you renew your policy within the maximum break-in period of 90 days, your NCB will be reinstated.

Myths about car insurance break-in period

Some of the myths about the car break-in period are:

• Myth 1: You can file claims during the break-in period.
  • Reality: The break-in period provides no active coverage; hence, claims cannot be made.
• Myth 2: Renewal premiums are always higher after a break-in period.
  • Reality: While some insurers may increase premiums due to risk factors, competitive options are still available.
• Myth 3: The break-in period is the same for all insurers.
  • Reality: The duration and policies regarding the break-in period vary across insurance providers.

Benefits of renewing car insurance on time

The advantages of renewing car insurance on time are:

1. Continuous coverage: This ensures that the car remains insured without any gaps.
2. Retention of No Claim Bonus (NCB): Timely renewal allows policyholders to retain their accumulated NCB in car insurance.
3. Avoids legal issues: Ensures compliance with motor vehicle laws.
4. Peace of mind: Reduces the risk of financial losses due to accidents or damages.

Disadvantages of a break-in period in car insurance

The demerits of having a break-in period are:

• Risk of uninsured damages: The owner will have to bear any repair or replacement expenses during this period.
• Higher premiums: Some insurers might increase the premium if a policy lapses.
• Tedious renewal process: Some insurers may require a fresh vehicle inspection during renewal, delaying the process.

How to renew car insurance during the break-in period?

Follow these steps to renew your car insurance during the break-in period:

1. Contact the insurer: Reach out to your insurer and inquire about renewal procedures.
2. Get vehicle inspection done: Some insurers require a vehicle check before policy renewal.
3. Compare plans: Consider switching to a better policy if the previous one doesn’t meet your needs.
4. Renew online: Most insurers allow you to renew car insurance online, following a quick and easy process.

FAQs

1. Can I drive my car during the break-in period?

No, driving without valid insurance is illegal and risky.

2. Will I lose my No Claim Bonus (NCB) if my policy lapses?

Yes, if you do not renew within the grace period, NCB benefits may be lost.

3. How long does the break-in period last?

It varies depending on the insurer but typically lasts a few days to weeks.

4. What is the grace period for car insurance?

The grace period in car insurance is the time frame the insurer allows to renew the policy without lapse or loss of benefits. It varies based on each insurance provider.

5. What is the penalty for expired car insurance?

If you are caught driving a vehicle without valid insurance, you may face a fine of ₹2,000 and/or a jail term of up to three months for the first violation. For a second offence, the penalty increases to ₹4,000 and/or up to three months of imprisonment. Remember that these penalties are subject to change based on amendments to the Motor Vehicles Act.

Conclusion

Renewing your car insurance policy before the due date is very important. By failing to do so, you not only expose your car to certain financial risks but also can attract legal punishment. If by any means, you forget to renew your car insurance in time, you must do so within the allowed break-in period, i.e. a maximum of 90 days from the policy expiry date.

Otherwise, you may lose out on the NCB benefit and may have to get your car re-inspected by the insurer. If you’re a person who tends to forget the policy renewal date, you can set a reminder on your smartphone or sign up with your insurer to receive notifications about the renewal date through e-mails and SMS alerts.

With ICICI Lombard’s car insurance policy, you can renew your policy online every time, without any hassles. Besides, we offer unique additional covers at a nominal extra cost that can significantly boost the coverage of your car insurance policy.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information. 

Holi, the festival of colours, is here and you must be excited about the joy and ecstasy it offers. This festival calls for splendid celebrations with vibrant colours, water balloons, and water guns. However, while we humans revel in Holi celebrations, our precious cars often become victims to the madness and mischief all around.

It is common for cars to get painted with blue, black, and red stains all around their bodies. Removing these Holi colours from cars can get really painful and burdensome. It gets even more stressful when the interiors of a car, including seat’s upholstery, dashboard, and floor mats get dirty and spoiled. Not only this, water ingress can even cause damage to your car’s engine and other mechanical parts.

In this article, we will discuss how to remove Holi colours from your car. We will also discuss how you can ensure your car’s paint stays protected during Holi celebrations. So, here are a few simple tips to keep your car safe and protected during Holi.

1. Park your car in a closed space and cover it

It might seem obvious, but you should make sure your car is not parked in an open space during the time of Holi. Anyone can throw the splashes of colours on your beloved vehicle and stain it badly. Hence, it’s prudent to park your car in a closed parking space and keep it covered using a car cover.

Make sure to cover your car completely, i.e. from its roof till the wheels. This will keep your car protected from colours, dirt and water during Holi celebrations. While buying your car’s cover, you should ensure that it’s of optimum quality and water proof.

2. Apply car wax or Teflon polish on your car’s body

Before you take your car out for a drive during this time, don’t forget to apply a coating of car wax or Teflon polish on its body. This will ensure your car’s paint protection even if it gets some colour stains. And not just that, applying Teflon coating on your car’s body will also protect your car from rusting and damages caused due to sunlight.

You can either buy car wax polish from a nearby auto shop and apply it yourself or you can take your car to a mechanic or service centre to get it coated with Teflon. Remember that applying wax polish is a cheaper option as compared to Teflon coating, but the latter is more superficial in quality.

3. Protect your car’s interiors with cling wraps or plastic covers

Remember that it’s not only the exteriors of your car that needs protection. It is equally important to protect the interiors of your car from getting stained or damaged. In fact, it is a difficult and stressful job to clean your car’s upholstery if it gets soiled. In case it gets damaged, fixing it can turn out to be a costly affair.

What you can do is use cling wraps or plastic covers to cover your car’s interiors, including its seats, dashboard, steering wheel, doorknobs, gear knob, headrests, and backrests. You can also use old clothes, bedsheets, towels, or curtains to cover the interiors of your car.

Owning a car is a special feeling. The connection between a person and his/her car cannot be described in words. In fact, many people love their cars just like their kids. Even a minor scratch on your car can give you a feeling of deep pain. However, just like other things in your life, your car too has a life span and one day you will have to part ways with it.

When you decide to purchase a new car and sell your existing vehicle, it can hurt you emotionally as well as financially. While nothing much can be done for the emotional pain, you can reduce your financial stress if you maintain your car properly. By keeping your car in a tip-top condition, you can fetch maximum value when you go out to sell your used car in the market.

Usually, the resale value of a car depends upon a number of factors such as the condition of its exterior as well as interiors, engine, tyres, mileage, and externally fitted accessories. In this article, we have listed a few simple tips that can help you maximise the resale value of your car. Continue reading.

1. Get your car serviced at least once every year

It’s very important to take your car for regular service at an authorised service centre in frequent intervals. Ideally, you should get your car serviced at least once every year. While giving your car for servicing, do not forget to ask the mechanic to change all necessary things such as oil filter, air filter, AC filter, engine oil, and gear oil.

This will keep your car running in perfect condition without any mechanical issue. Such a car will be the preferred choice of second-hand car buyers. Hence, you will be able to negotiate well for its price when you sit down with a buyer to sell it.

2. Wash the exteriors and clean the interiors regularly

Cleaning and washing your car regularly is very important to keep its shine or gloss intact. This will create a strong first impact of your car in the minds of prospective buyers. If possible, you should wash your car at least once every week. Moreover, if you park your car in an open garage, you should wash it more often (two to three times a week).

Equally important is to clean the interiors of your car. Interiors of a car include seat’s upholstery, dashboard, steering wheel, gear knob, and floor mats. To clean the interiors of your car, you can buy a good quality vacuum cleaner and do it yourself or you can avail the services of the professionals.

3. Replace the tyres when required

The tyres are one of the most important components of a car. They separate your car from the road and help in maintaining a firm grip with it. While assessing the value of your car at the time of resale, the buyers will surely look at its tyres. A dull and worn out pair of wheels may create a bad impression and bring down the resale value of your car.

Ideally, you should change your car’s tyres after every 40,000 kilometres. If you drive in rough conditions, you may even have to do it even earlier. Replacing the four tyres of your car may cost you somewhere around ₹ 10,000 to ₹ 15,000. However, it will help you fetch a much better deal when you opt to sell your car.

Though a valid third-party insurance policy is mandatory for all vehicles in India, compliance to this law was found to be very low in 2018. As per a Supreme Court Committee’s report of March 2018, only one out of three vehicles in India was found to have a third-party liability cover. The report also mentioned that about 40% of cars that are more than three years old remain uninsured in India.

In order to reduce the number of uninsured vehicles on road, the Honorable Supreme Court of India gave a landmark order in July 2018, making it mandatory for all cars and two-wheelers sold on or after 1^st September 2019 to have a long-term third-party motor insurance cover. The duration for this mandatory long-term coverage was 5 years for two-wheelers and 3 years for four-wheelers.

In August 2018, the Insurance Regulatory and Development Authority of India (IRDAI) directed the motor insurance companies to comply with the Supreme Court’s order and start offering long-term insurance plans for all vehicles sold after 31^st August 2019. Also, it asked the insurers to offer bundled plans that can provide long-term coverage for both – third-party liability as well as own damage.

As a result, vehicle buyers were offered three choices –

1. 3-year third-party cover
2. 3-year third-party and 1-year own damage cover
3. 3-year third-party with 3-year own damage cover

Customer ease is always the top priority at ICICI Lombard. As part of this effort, ICICI Lombard has launched a facility called InstaSpect, the mobile self-inspection feature that eliminates the need for physical inspection of cars. ICICI Lombard customers can now record a video of their car on their mobile phones as per the guidance provided in the ‘Insure’ app. This facility saves customers the hassle of having to wait for a surveyor to visit and carry out the physical inspection.

Inspection is mandatory when a motor insurance policy lapses and it causes delay in issuance of renewed policy. Normally, the insurer initiates a process called ‘Break-In’ when a customer applies for renewal of a lapsed car insurance policy. In this process, an inspection by authorised surveyors is carried out and the policy is issued based on satisfactory inspection. However, with the ‘Mobile Self Inspection’ feature, the time taken for renewal of lapsed policy reduces to a few hours from 2-3 days. This feature has made renewal of lapsed policy an easy-going and stress-free process for customers. Customers of other insurance companies who want to make a shift to ICICI Lombard can also use this feature.

For using the ‘Mobile Self Inspection’, a customer needs to have an internet connection; mobile phone with 3 MP or above camera resolution and the video of the car must be recorded in broad daylight. The app also contains a demo video for step-by-step guidance of the ‘Mobile Self Inspection’ process. After making payment for renewal of car insurance policy the customer is prompted to upload the self-inspection video via the mobile app.

During the current pandemic situation, buying an online car insurance policy is the best option as you need not step out of your home for that.

It's imperative to renew your car insurance policy before its expiry date. Failing to do so can not only land you in legal trouble but also expose you to losses like car theft and damages. As per the Motor Vehicles (Amendment) Act of 2019, driving an uninsured vehicle in India can attract a penalty of ₹ 2,000 or imprisonment of up to 3 months or both.

However, car insurance renewal may not be easy and straightforward as you think. The biggest obstacle during the current pandemic situation is moving out of your house and visiting the insurer's office to get your policy renewed. Also, the lack of options means that you may have to remain stuck with your current insurer even if it is demanding an unreasonably high premium.

All of these problems can be nullified by opting for car insurance renewal through the online method. For online car insurance renewal, all you have to do is visit your preferred insurer's website, enter your car's details, and pay the premium amount via an online payment method. Below are the reasons which make online car insurance the best option right now.

Convenience of buying from home

The most notable advantage of online car insurance renewal is that you can do so from the convenience of your home. You are not required to step out of your home to visit the insurer's office in order to get your policy renewed. All you need to do is visit your preferred insurer's website and renew your car insurance policy by paying the premium through an online method.

This will protect you from the hassles of visiting the insurer's office physically and will also help you in minimising contact with other people during the current pandemic situation.

Minimal paperwork

Online car insurance renewal involves minimal paperwork. In fact, at ICICI Lombard, you can buy or renew online car insurance policies with no physical documentation. To buy an online car insurance policy, you simply need to fill and sign the proposal form digitally, and choose your desired coverage/add-ons, and make the payment online.

Moreover, the soft copy of your policy document will also be sent to you on your registered e-mail id or WhatsApp number. As a result, you will not only keep yourself protected from the possibility of Covid-19 infection but also ensure that your car is covered.

No need for an insurance agent

By opting for the online route for your car insurance renewal, you can purchase the policy directly from the insurance provider without taking help from an agent or broker. This way, your insurer will save on the brokerage charges it may have to pay to the agent otherwise, and hence, offer a reduced quote for your car insurance renewal.

In case you come across any doubts or jargons while purchasing motor insurance, you can ask us on the chat feature or give us a call at 1800 2666. We're available to solve your queries.

Instant policy issuance

When you buy a car insurance policy online, the policy is issued almost instantly. After paying the premium amount, the policy document is sent to you on your registered e-mail id within a few minutes. It means that, unlike the offline policy, you won't have to wait for days to receive your car insurance policy when you buy it online.

This is because the insurers take no time to issue online car insurance policies. There is no lengthy paperwork as the documents are verified through a computerised process.

With ICICI Lombard's voice bot service, you can register your car insurance claim instantly, right from the accident spot.

Modern advancements in terms of technology have made everything easy and digitised. More and more people are getting increasingly familiar with voice assistants such as Siri, Alexa, Google assistant etc. and are demanding such voice-enabled automated solutions to all their problems. In fact, as per Google's voice search demographics, almost 27% of the global population with internet access prefer using voice search technology.

Almost all progressive brands have begun to offer quick and personalised solutions to their customers' queries in chatbots and voice bots. Taking a step ahead in aligning with this trend, we, India's leading private sector insurance company, have launched a unique voice bot service, allowing customers to register their motor insurance claims through a voice call instantly.

Continue reading to know more about this unique facility and how you can make the best use of it.

What is ICICI Lombard's voice bot facility?

As mentioned above, our voice bot facility will allow two-wheeler insurance and car insurance policyholders to register their claim in the wake of an accident instantly. The voice bot service is a highly advanced technological solution, and it works on state-of-the-art speech recognition capabilities to recognise long narratives by the policyholders.

Customers can use this unique facility through their smartphones as well as feature phones. This facility has been tested to ensure it works well even with high ambient noise and with different voice accents.

What's unique about this facility?

A comprehensive car insurance policy protects a vehicle owner against the losses or damages suffered by his/her vehicle during an accident or mishap. However, registering a car insurance claim may seem to be a long and tedious process. A policyholder is required to contact the insurer, submit the relevant documents and wait for the surveyor to get his/her claim passed.

However, with our voice bot facility, registering motor insurance claim has become easy like never before. All the customer needs to do is make a call from the accident spot and follow the instructions. This will protect the policyholder from the hassles of visiting the insurer's office, filling up a claim form, and waiting for a prolonged period to get his/her claim registered.

This voice bot facility is currently available in English and will soon be available in Hindi, Tamil, and other regional languages. This is to provide a technology-enabled facility that helps the majority of Indians to interact with the bot in their native language.

After the launch of this unique service, our Chief of Service, Operations and Technology – Mr. Girish Nayak – said, "At ICICI Lombard, we strive to be at the forefront of harnessing technology for the benefit of our customers. In line with this approach, we are happy to have unveiled our Voice Bot activated motor insurance claim approval solution. In the new hybrid world, where contactless solutions are the norm, this service will empower our customers to register their motor claims instantly and from the safe environment of their home."

Want to make a motor insurance claim, but not sure how it works? We're here to help! To get your insurance benefits in case of accidental damages, you need to know the right process of filing a claim. It is a simple and straightforward affair if you have insured your car with us.

Before we explain the insurance claim process, let's take a look at the two major types of motor insurance claims:

• Third-party claim – If you damage any third party or their property with your car, then the damages will be covered under a third-party claim. In this case, your insurer will cover the losses to the third party.
• Own damage claim – If your own vehicle is stolen or damaged in an accident, you can make an own damage claim. In this type of claim, your insurer will cover losses to your vehicle. Your car must be covered by a package policy (comprehensive policy covering both third party and own damage covers) to make this claim.

Whether you're filing a third party car insurance claim or an own damage claim, you need to contact your own insurer at the time of accident or theft. You'll then be directed correctly for the next steps – be it heading to a garage, furnishing specific documents, or filing an FIR at the police station.

How to file a motor insurance claim

When you've insured your vehicle with us, you'll find claiming is simple and hassle-free. We’ll assist you with the entire insurance claim process, so that you can rest easy.

Let's take a look at the step-wise process for filing a motor insurance claim with us:

Step 1: Call us on our toll-free number - 1800 2666 - immediately after the incident.

Step 2: Share the circumstances of the event (accident, breakdown, theft, etc.) with our customer relationship team.

Step 3: To help us survey the extent of damage to your vehicle, use the InstaSpect feature on our IL Take Care app. The app is available for download on the Play Store and App Store. You can also track your ICICI Lombard claim status on the app.

Step 4: If your car needs repairs, we'll arrange to pick up to the nearest preferred partner garage.

Step 5: Once your car is repaired, we settle the bill directly with the garage (in case of a cashless garage). You can pay your share of the amount and take possession of your vehicle.

And that’s it! If you’ve opted for our car insurance with Garage Cash cover, we’ll also provide a daily allowance while your car is at the garage. You can use this allowance to pay for auto or taxi fare till your car is back.

Apart from the toll-free number mentioned above, you can also contact us through several other modes:

• Lodge a claim on our website or app
• SMS "CLAIM" to 575758
• Write to us at customersupport@icicilombard.com