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.

Owning a car comes with many responsibilities, and one of the most important ones is having the right insurance policy. Car insurance is not only a legal requirement but also a necessary measure to protect yourself and others on the road. While many people choose yearly plans, long-term car insurance policies are getting more popular due to their wide range of benefits. Such plans provide protection for more than one year, which helps drivers save money in the long run.

Let’s find out what a long-term car insurance policy is, its many advantages, how to avail of it and what happens if you drive a new car without it.

What is a long-term car insurance policy?

A long-term car insurance policy is a plan that provides coverage for your vehicle for a period longer than the usual one-year term. These policies offer protection for two to three years at a fixed premium. Once you purchase a long-term policy, you do not need to renew it every year, which is a major benefit for many drivers.

Long-term policies can include comprehensive coverage as well as third-party car insurance, which is the minimum legal requirement. With a long-term policy, you can choose either comprehensive cover or stick to third party protection depending on your needs.

Benefits of a long-term car insurance policy

Here are some of the important benefits:

• It eliminates the hassle of policy renewal

Renewing a car insurance policy every year can be time-consuming and easy to forget. Missing the renewal date can leave you without coverage, which puts you at legal and financial risk. With a long-term policy, you avoid this stress entirely. You simply pay once and stay protected for a longer period.

• Get more discounts on premium

Long-term car insurance policies come with attractive discounts. Insurance companies may offer reduced premium rates as a reward for committing to a longer coverage term. These discounts are usually higher than what you get with annual policies. In addition, if you include third-party car insurance in a long-term plan, the overall cost can be lower than renewing a basic third-party cover every year.

• Avoid policy expiry

Forgetting to renew your car insurance on time can lead to an unintentional policy lapse. This not only exposes you to legal penalties but also leaves your car unprotected. A long-term insurance policy keeps your vehicle continuously insured. You do not need to set reminders or worry about missing deadlines.

• You will not lose out on NCB

NCB stands for No Claim Bonus. It is a discount given to you by your insurance company for not making any claims during your policy term. The longer you go without making a claim, the higher the NCB you can earn. These benefits remain available even with a long-term policy. Some insurers offer additional NCB protection or allow you to earn it at a faster rate. This can lead to significant savings in future premiums.

• It ensures optimum safety of your car

Long-term car insurance offers consistent and uninterrupted coverage, which is important for ensuring your vehicle is always protected. In the event of an accident, theft or any natural disaster, you can rely on your policy to cover the costs without the stress of out-of-pocket expenses. .

How to avail benefits of this insurance?

To take advantage of a long-term car insurance policy, follow a few simple steps:

1. Compare different insurers: Not all insurance companies offer long-term plans. Research and compare policies from trusted providers to find the best option.
   
   
2. Check what is covered: Ensure that the policy includes everything you need, such as own damage cover and third-party car insurance.
   
3. Look for discounts: Some insurers offer early bird discounts or loyalty bonuses for choosing long-term options. Take advantage of these offers.
   
   
4. Buy online: Many insurance providers offer additional discounts if you purchase the policy online.
   
   
5. Keep your vehicle details ready: You will need to provide your car’s registration number, make, model and year of manufacture.

Penalties for driving a new car without long-term car insurance policy

As per the updated traffic regulations in 2025, the penalties for driving without a valid car insurance policy are as follows:

• First offence: A fine of ₹2,000 and/or imprisonment for up to 3 months, along with possible community service.
• Repeat offence: A fine of ₹4,000 and/or imprisonment for up to 3 months, with continued risk of community service.

It is especially helpful if you forget renewal dates or want to avoid legal trouble. Plus, if you include third-party car insurance in your plan, you meet the minimum legal requirement while enjoying long-term benefits.

Conclusion

A long-term car insurance policy is a smart choice for anyone looking for ease, savings and solid vehicle protection. Eliminating the need for annual renewal, offering better discounts and preventing policy lapses brings convenience and peace of mind. Whether you choose comprehensive or third-party car insurance, opting for a long-term plan ensures that your car stays covered at all times.

If you're planning to buy a new vehicle or simply want to switch to a more reliable insurance solution, consider the long-term option. It not only keeps you legally safe but also provides financial and practical advantages that make it a worthwhile investment.

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.

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

Updated on 10-04-2025

Driving brings a sense of exhilaration to most people, especially beginners. It is a life skill that every adult seeks to learn and is extremely useful in our everyday lives. However, carelessness and adventurism while driving can affect the safety of the driver and other vehicles and people on the road.

Tips for Driving a Car for the First Time

To keep you safe, we have listed down 10 crucial car driving tips and techniques which every beginner must learn to ensure a smooth and safe driving experience.

1. Get familiar with your car

You should be acquainted with your car's basic layout before you take it out on the road. While no one learns it in a day, you should at least have the theoretical knowledge. For example, knowing the basics; how to use the buttons on the steering wheel and dashboard, how to place the jack, fuel tank capacity - these are some things that every driver should know.

You should also set your mind for driving your car's category; hatchback, sedan or SUV, as each class has some peculiarities associated with it. For instance, some people consider it challenging to manoeuvre and park SUVs. You should be aware of the vehicle's challenges to avoid any panic while driving.

2. Wear the seat belt

All car drivers must wear their seat belts all the time while driving. Whether you're a beginner or a pro, you should follow the habit of wearing the seat belt right while driving a car.

According to a study, almost 75% of car users in India do not wear seat belts while driving, resulting in 15 deaths every day. Not only is it mandatory, wearing a seat belt is an effective way to reduce the possibility of severe injuries in the unfortunate event of an accident or collision.

3. Check and make adjustments before driving

Make sure to adjust your seat, mirrors and steering wheel in the right position before setting off on your drive. You may see people making such adjustments while driving, but as beginners, it is best to make these adjustments beforehand to ensure that you have a comfortable and safe drive.

4. Keep both your hands on the steering wheel

As a beginner, you should not opt for driving with a single hand. It's best to keep your car in control by having a steady grip on the steering wheel with both hands in the' 10-and-2' position or '9-and-3' position.

These are popular techniques for holding the steering wheel, which beginners find comfortable. However, these are not the only techniques and eventually, what matters is the hand-positioning which gives you the maximum ease and comfort.

5. Maintain moderate speed

As a beginner, you should always maintain a moderate or slow speed. While high speed gives an adrenaline rush, remember that you may not be able to handle a car at high speeds in the beginning. You may face difficulty controlling the car if some object or person instantaneously appears before your vehicle, which may cause an accident.

6. Use signal indicators

Car indicators help you communicate with other drivers while driving. Make it a habit to use turn indicators well before switching lanes, going past other vehicles, and making a halt on the main roads. It warns the other car drivers to adjust their speed and gives you the space to make a turn safely.

7. Avoid distractions

You should avoid using your phone or paying attention to any other activity while driving. Mobile phone distractions are already a significant cause of road accidents and endanger you and other people on the road. If you have to take a phone call while driving, park your car at an appropriate spot and then speak. Also, avoid using earphones while driving.

8. Be confident and calm

The most important driving tip is to be confident and calm while driving. It is natural to be a bit nervous while driving as a beginner, but that should not affect your morale while on the road. A panicked mind can prove to be dangerous for you as well as others. Drive only those distances you can safely cover initially. It would help if you gradually increased the travelling distance once you're confident about your driving skills.

  9. arry your license and insurance documents

While driving a car, you should always carry your driving license and other car-related documents, like the registration certificate and a valid motor insurance policy. If caught without these documents, you will be penalised. No one ever wants to be punished for such avoidable mistakes, least of all at the beginning of their driving experience.

10. Never drive under stress

As a beginner, you need extra focus to get accustomed to the traffic and roads. While driving, split-second decisions can either keep you safe or put your life in jeopardy. Stress can throw you off balance and hamper your concentration and judgement capabilities, making you vulnerable to misjudgements and accidents. Thus, it is best to avoid driving when under stress or when you're in a disturbed mood.

How to Drive a Car: A Step-by-Step Guide

Here is a simple guide for those learning to drive a car-

1. Starting the Car:

• Manual Transmission:

• Ensure the gear stick is in neutral.
• Press the clutch pedal fully.
• Turn the ignition key to start the engine.

• Automatic Transmission:

• Ensure the gear lever is in 'P' (Park).
• Press the brake pedal.
• Turn the ignition key to start the engine.

2. Moving the Car:

• Manual Transmission:

• Press the clutch pedal and change into first gear.
• Gradually release the clutch while gently pressing the accelerator.
• As the clutch engages (the 'bite point'), the car will start moving.

• Automatic Transmission:

• Press the brake pedal and shift into 'D' (Drive).
• Release the brake and gently press the accelerator to move forward.

3. Steering and Turning:

• Hold the steering wheel with both hands at the '9 and 3' positions.
• Use smooth, controlled movements to steer.
• Signal your intentions using indicators well before making a turn.

4. Stopping the Car:

• Manual Transmission:

• Press the clutch pedal and move the gear stick to neutral.
• Gradually apply the brake to come to a smooth stop.

• Automatic Transmission:

• Release the accelerator.
• Gradually apply the brake to stop.

5. Parking:

• Manual Transmission:

• After stopping, shift into first gear or reverse to prevent rolling.
• Engage the parking brake.

• Automatic Transmission:

• Shift into 'P' (Park).
• Engage the parking brake.

Tips for Driving a Manual Car

Here is how to operate a manual transmission car:

1. Master the Clutch: The clutch pedal controls the connection between the engine and the wheels. Practice finding the 'bite point' where the car begins to move. Smooth clutch control prevents stalling and ensures a comfortable ride.
2. Gear Shifting: Learn the appropriate speed ranges for each gear. Upshift as the engine revs increase and downshift when slowing down to maintain engine efficiency.
3. Hill Starts: Use the handbrake to prevent rolling backward on inclines. Disengage the handbrake as you simultaneously release the clutch and press the accelerator to move forward.
4. Anticipate Stops: When approaching a stop, downshift through the gears to use engine braking, which can reduce wear on the brake pads.

Tips for Driving an Automatic Car

To operate an automatic transmission car, follow these tips:

1. Understand Gear Positions: Familiarise yourself with the gear positions: 'P' (Park), 'R' (Reverse), 'N' (Neutral), and 'D' (Drive). Some cars also have 'L' (Low) or 'S' (Sport) modes for specific driving conditions.
2. Use the Right Foot Only: In automatic cars, use your right foot for both the accelerator and brake pedals. This practice prevents accidental simultaneous pressing of both pedals.
3. Creeping Forward: Automatic cars tend to move slowly when in 'D' without pressing the accelerator. Use this feature for manoeuvring in tight spaces or during heavy traffic.
4. Parking: Always shift to 'P' when parking and engage the parking brake to prevent the car from moving.

Safety Tips To Consider When Driving A Car For The First Time

In addition to learning basic driving tips, understanding safety measures is crucial. Here are some key precautions:

• Always indicate using turn signals before changing lanes or making a turn.
• Follow traffic regulations strictly to prevent accidents.
• Wearing a seatbelt is legally required in India and essential for your safety.
• Do not drink and drive, as alcohol is known to have adverse effects on judgment.
• Use the horn sparingly and avoid unnecessary honking.
• Yield to pedestrians and smaller vehicles to ensure road safety.
• Maintain a safe distance from the vehicle ahead to allow enough reaction time.
• Make sure your car is insured before driving, and consider Comprehensive four-wheeler insurance for extensive coverage.

FAQs

Q1: How long does it take to learn to drive?

A: It varies from person to person, but with consistent practice, most beginners become comfortable within a few weeks to a few months.

Q2: Is it harder to drive a manual car than an automatic?

A: Manual cars require more coordination with the clutch and gear shifts, making them slightly more challenging for beginners. However, with practice, it becomes second nature.

Q3: What should I do if the car stalls?

A: Stay calm, shift to neutral, restart the engine, and try again. It's common for beginners, especially in manual cars.

Q4: Can I learn to drive without a driving instructor?

A: While you can practice with a licensed driver, professional instructors provide structured lessons and expert tips.

Q5: Which car insurance is the best?

A comprehensive four-wheeler insurance policy is an ideal choice for considerable coverage. You can also pick add-ons according to your needs and car type.

Conclusion

Learning to drive is a rewarding journey that opens up new opportunities and independence. Following the above-detailed tips and practicing regularly will build the confidence and skills needed to become a safe and competent driver.

You may also consider opting for a comprehensive car insurance policy as it provides cover for a host of unfortunate events, such as car theft, dents or damages due to a collision, and natural disasters, among several more benefits.

Always conduct in-depth research before selecting a motor insurance policy. You can purchase a car insurance policy at reasonable premiums from ICICI Lombard by simply generating a quote here.

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.

The used car market in India has seen exponential growth over time. In the last few decades, the stereotypes around buying a used car dissolved in practical reasoning. This gave way to the boom of the used car market, which is currently 1.3 times the size of the new car market in India. While buying a used car, one of the chief concerns a buyer has is surrounding the car insurance policy ownership. In this article, we've tried to address this topic by answering the possible questions you may have about used car insurance. Let's get started.

Why do I need car insurance?

According to the Motor Vehicles Act, every motor vehicle plying on Indian roads must have a third-party motor insurance policy. Driving any car – old or new – without a valid car insurance plan is illegal and punishable by law. Apart from the legal obligation, there are other vital reasons to procure car insurance.

• Coverage against risks: A comprehensive car insurance policy for used cars acts in the same way it does for new cars. When you buy a second-hand car, you should get it insured to protect it from all sorts of risks and adversities. Not that it nullifies the chance of a mishap, but it covers the expenses you may incur afterwards.
• Road accidents: Should a car ever meet with a road accident; car insurance covers damages to the vehicle and death/permanent disablement of the owner-driver. It also covers any third-party liability that may arise due to the collision.
• Natural calamities: A comprehensive car insurance policy will cover any damage caused to your car by natural disasters like earthquake, storm, flood, volcanic eruptions etc.
• Third-party liabilities: If your car collides or causes damage to a third-party due to negligent driving, you are required to pay for the damages out of your pocket unless you have a valid third-party third-party car insurance policy. With car insurance, the insurer will take care of all the expenses you owe to a third party.
• Security against car theft: If you happen to lose your car or if someone steals it, you can claim cover under your car insurance policy. Your insurer will compensate you for the car's value, according to the Insured Declared Value (IDV) fixed at the time of policy purchase.

So, what happens to my second-hand car's insurance?

Suppose you have bought a used car with a valid car insurance policy. In that case, you need to transfer the insurance policy in your name when you transfer the used car's ownership. Some people transfer the policy in their names while some opt for a new car insurance policy altogether. Whatever the case is, there is only a 14-day window to transfer a car insurance policy ownership. To transfer the car insurance policy of a used car, you need these documents –

• Original Registration Certificate (RC) with the new buyer's name
• Forms 29 and 30 that bears the signature of the previous owner
• Certificate of insurance
• A copy of the car policy
• The transfer fee and the transfer of registration certificate
• New proposal form
• New copy of the registration certificate
• Old policy document
• No Objection Certificate (NOC) from the previous policyholder
• No Claims Bonus (NCB) difference amount, if there is any

Now, if you are not lucky enough to have an existing car insurance policy on the second-hand car, don't fret. You can always buy a new car insurance policy for your used car.

How do I buy car insurance for a used car?

The process of renewing car insurance or buying new car insurance online is pretty straightforward. First, you need to read about the policy and learn its inclusions/exclusions. You can head to our car insurance page on ICICI Lombard, one of India's reliable insurance providers.

To get used car insurance online, you need to visit our car insurance page and –

• Enter your mobile number
• Enter your email address
• Enter your used car's registration number
• Click on the 'Get Quote' button

Consider performing a proper car inspection before buying a car insurance policy. You may be required to furnish the report of the car inspection done by a professional. You should also check the previous insurance claim history.

The No Claim Bonus (NCB) on a car insurance policy often creates confusion for the new owner of a used car. NCB is the insurer's reward to the policyholder for not making any claim during the policy year. People often mistakenly think that they are entitled to NCB benefits as the new policyholder of a used car insurance policy. However, the NCB benefit is for the previous policyholder only. The newest owner of the car is not entitled to any of the NCB benefits.

Things to keep in mind for a seamless used car insurance transfer

To ensure your car insurance transition is smooth and hassle-free, keep these points in mind:

• Initiate the transfer quickly: Try to get the insurance transferred to your name within 14 days of purchase.
• Verify claim history: Ask the previous owner about past claims, No Claim Bonus (NCB), and policy details.
• Update the RC: Ensure the car’s Registration Certificate (RC) is updated with your name to avoid issues during claim settlement.
• Check coverage gaps: If the existing policy is basic, consider upgrading to a comprehensive plan for better protection.
• Inform the insurer: Communicate with the insurance provider about the ownership change and follow their process for transfer.

Conclusion

Be it a used car or a brand-new one, a car insurance policy is crucial. It provides financial security against the expenses you may incur due to an unforeseen car accident. It is also mandatory to have a valid third-party car insurance policy to drive your car on Indian roads.

It's important to note that a third-party car insurance policy can only save you from getting penalised by traffic officers. A comprehensive car insurance policy does the same, but it additionally covers damages to your own car in case of a mishap. Protect your second-hand car from risks and adversities with a comprehensive car insurance policy today.

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.

Cruise control refers to an automatic system in cars that is responsible for setting the speed limit without the driver's interference. Once the system is activated, the vehicle stays at the selected speed until the driver intervenes—either by braking, accelerating manually or switching off the function.

In Indian͏ ͏͏cars͏, ͏͏cruise control ͏is becoming a͏ popular feature, particularly in automatic vehicles. While not ideal for congested city traffic, cruise control has proven beneficial in specific driving conditions.

How does the cruise control system work?

Cruise control essentially transfers the job of speed regulation from the driver’s foot to an onboard electronic unit, making driving smoother, more efficient and economical. There are two main types of cruise control— standard and adaptive. Standard cruise control uses a cable or electronic system to control the throttle, allowing the driver to set a specific speed, while adaptive cruise control adds convenience by adjusting speed based on traffic conditions.

In modern cars, cruise control is managed electronically by the Engine Control Unit (ECU). When the driver reaches a desired speed and switches on the system, the ECU receives signals from sensors that monitor the vehicle’s movement. Based on this information, the ECU adjusts the throttle electronically to maintain that speed.

Pros & cons of cruise control

Given below are the cruise control is known to make driving easy and convenient:

• Reduces fatigue during long drives: Maintaining a steady speed without using the accelerator allows drivers to relax their foot, reducing physical strain on extended journeys.
• Improves fuel efficiency: By avoiding constant acceleration and deceleration, cruise control can help optimise fuel consumption.
• Promotes safe driving: Ensures that the car stays within a selected speed limit, helping avoid unintentional speed violations.
• Simple speed adjustments: Drivers can increase or decrease speed using controls on the steering wheel, without pressing the accelerator or brake.
• Ideal for automatic vehicles: Works best in automatic transmission cars, where the need for manual gear changes is eliminated.

While cruise control offers several advantages, it also comes with certain limitations:

• Less effective on Indian roads: Frequent traffic congestion, uneven roads and unpredictable driving conditions limit the practicality of cruise control on Indian roads.
• May reduce driver attentiveness: Continuous automated driving can lead to decreased alertness, potentially increasing the risk of drowsiness.
• Unsuitable for manual transmission cars: Manual gear shifting interrupts the cruise function, making it less effective and inconvenient in such vehicles.
• Challenging to use at night: Reduced visibility and unexpected obstacles can make using cruise control unsafe during dark hours.
• Ineffective on hilly or curvy terrains: Cruise control is not designed for handling sudden elevation changes or sharp turns, where frequent speed adjustments are necessary.

Conclusion

As Indian roads evolve and driving technologies become more advanced, cruise control is expected to gain wider utility. Still, no system re͏͏places the need f͏͏or attentiveness and ͏safe driving practices. To complement features like cruise control, motorists should ensure they have an adequate car insurance policy in place. Whether it's to protect one's vehicle or meet legal requirements, third party car insurance remains essential for every car owner in India.

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.

It’s crucial to identify and address winter car problems at the earliest.

A dip in the mercury doesn't affect just you, but also your car. During winters, your vehicle is likely to face several mechanical problems, as its metal tends to shrink. Therefore, you must take precautionary measures and be prepared to deal with problematic situations. Read on to know some common winter car problems and how to overcome them.

Thickening of fluids

In places where the temperature reaches sub-zero levels, car fluids such as oil, anti-freeze, etc., tend to become less viscous. As a result, they become less mobile, and their free flow is restricted. This can hamper your car's performance.

To avoid this, it's advisable to leave your vehicle's engine running for at least 10 to 15 minutes for fluids to warm up. It's also a good idea to change fluids before winters' onset to maintain recommended fluid levels.

Dead battery

This is one of the most widely experienced winter car problems. A dip in temperature below the freezing point overworks the battery, causing it to falter. Also, since a lot of energy is soaked from the battery to power different systems such as car heater and fog headlights, the same is likely to diminish its performance.

A vital step in winter car care involves buying a new battery before the onset of the cold if the current one is already 4 to 5 years old. If you don't intend to do so, do check if the present one can last through the season.

Failure of wiper

This problem happens because of the failure to clear the windshields before starting the wipers. During cold weather, wipers freeze to the windshield, and when they are turned on, the blades may tear. Also, as these blades are made from rubber, pressure from ice or snow can break them.

During winters, one of the basic car maintenance tips is to turn your vehicle's fan controls and heater on. Also, if you live in a place where temperatures drop significantly, consider installing high-quality beam winter wiper blades.

Freezing of fuel lines

Another common winter car problem - your vehicle's fuel line may freeze because of condensation forming in the gas tank. The problem amplifies when you are running low on fuel, and cold temperature may prevent the fuel from reaching the car's engine.

One of the most important winter car care tips to overcome a frozen fuel line is to park your vehicle in a warm area. If you can't find a warm garage, you can place an electric heater near the fuel lines to warm it up. Avoid using an open flame heater if you are using this method, as it can result in an accident.

Failure of starter motor

The starter motor helps start your car. During winters, the motor has to work hard to turn the engine on, which puts a lot of stress on it, causing it to fail. While there's nothing much you can do about it, you must continuously avoid cranking the engine.

Give it a minimum of 25 to 30 seconds to get started. It's also advisable to check for corrosion on the starter terminals and ensure proper insulation from moisture. To prevent starter motor failure, keep the engine in top shape and check out for any unfamiliar sound while starting your vehicle.

Fluctuation of tyre pressure

A dip in temperature also results in the fluctuation of your car's tyre pressure. Pressure fluctuates because air when cooled contracts. With a drop in mercury levels, individual molecules take up less space within the tyre. As a result, they exert less force on the walls of the tyres.

Therefore, you must always check the tyre pressure indicator before starting your car and ensure it's up to the mark. Note that low tyre pressure can also result in a complete blowout during driving, causing an accident.

Cracking of alternator belt

An alternator belt is responsible for charging the battery that powers all the electronics in your vehicle. During winters, the alternator belt cracks and a faulty alternator causes electrical and battery issues.

As fluids thicken, it takes more time for the alternator to charge the battery, and this might cause it to crack. If you get to hear a high-pitched sound while starting your car, then it's an indication of a worn alternator. For a smooth ride, do inspect the alternator and get it replaced immediately if it's faulty.

Corrosion of spark plugs

A car's spark plugs ignite the air-fuel mixture. During winters these plugs, which are mostly made of ceramic, crack. Corroded spark plugs will reduce the efficiency of your vehicle, and they also cause starting problems.

As part of your winter car care, check these plugs before the cold season and get them changed if they are faulty. If you find a drop in acceleration, then it's an indication of faulty plugs.

Buying a new car fills your heart with joy. Imagine you drive down to your friend's porch to express your happiness and surprise him in your new car. After a short discussion, you find out that you paid an enormous sum on insurance compared to him.

To avoid such a scenario and ensure you get a good deal on your car insurance policy, you first need to know what factors influence car insurance costs. Read on.

Tips on how to get the best deals on car insurance

Here are a few tips that will help you get the best car insurance effortlessly-

1. Take a quote

You can head here on our website and enter your vehicle details and personal information to take a quote. Once you see the quote, you can customise it with the coverage you need to check the price change. In this way, you can go for the lowest-priced premium on the coverage that suits your needs best.

2. Look at the add-ons and other benefits

You can be smart and save some money on the car insurance premium by adopting some of the methods we discussed in this article. But the premium is not the only parameter to determine the best car insurance policy. A car insurance policy with cheaper premium and lower coverage is not necessarily better than others. In comparison, you can buy a car insurance policy that covers more against payment of a slightly higher premium. This brings us to the riders or add-ons.

At times, add-ons like zero depreciation, garage cash, roadside assistance, etc. prove crucial. Check for such add-ons when you are customising your car insurance policy.

3. Pay attention to fine prints and exclusions

At the time of buying or renewing car insurance, always enquire your dealer about the exclusions. Comprehensive car insurance covers a lot, but not everything. Also, there are some clauses that you need to keep in mind at the time of a claim. Here are some pointers that you should know:

Car insurance doesn't wholly cover damages caused to the engine. No matter how surprising that may sound, that's a fact. You can opt for an engine protect add-on that will cover engine damage in case of an accident.

Although car insurance is issued on the motor vehicle's chassis number and engine number, it doesn't cover damages/loss if the car gets into an accident before registration.

Suppose the driver doesn't hold a valid driving licence and still drives a car into an accident. In that case, insurance may not cover damages. Also, in case of unauthorised driving, the insurance may not cover damages either.

Hence, before you buy a car insurance policy, you must be well aware of the exclusions.

4. Check for discounts

Suppose you have installed an ARAI approved anti-theft device in your vehicle. In that case, you can get a discount of 2.5% on the OD (Own Damage) premium, subject to a maximum of ₹500.

Another type of discount you can get on car insurance is the No Claim Bonus (NCB), which we mentioned earlier in this article. If you made no claims in the past years, you could get up to 50% NCB on your own damage premium.

Apart from the above, insurers also offer a fixed discount to members of the Automobile Association of India (AAI) and Western India Automobile Association (WIAA). So if you are a member, you can opt for the discount at the time of policy purchase.

Tips to get discounts on car insurance premium

If you are looking for discounts on car insurance policy, here are a few things you can do-

1. Leverage Membership Discounts: Certain organisations and memberships offer their members exclusive insurance discounts. For instance, AARP members can access special rates on auto insurance.
2. Maintain Continuous Coverage: Lapses in insurance coverage can be viewed negatively by insurers. Maintaining continuous coverage without gaps can make you eligible for loyalty discounts.
3. Take Defensive Driving Courses: Completing accredited defensive driving courses projects your commitment to safe driving, which can lead to premium discounts.
4. Inquire About Low Mileage Discounts: If you don't drive frequently, ask your insurer about low-mileage discounts, as reduced road time lowers the likelihood of accidents.
5. Pay Premiums Annually: At times, insurers offer discounts if your premium is paid annually instead of in monthly instalments, as it reduces administrative costs.

FAQs

• Comprehensive car insurance and third-party car insurance: What is the difference?

Third party car insurance covers damages or injuries you cause to others but does not protect your vehicle. Comprehensive car insurance provides broader coverage, including third-party liabilities and damages to your vehicle from accidents, theft, or natural disasters.

• How can I determine the right car coverage amount?

Assess your car's value, driving habits, and financial situation. Consulting with an insurance advisor can help you tailor coverage to your needs.

• Does credit score affect car insurance premium?

In some regions, insurers consider credit scores when determining premiums, viewing higher scores as indicative of responsible behaviour.

• Can I change car insurance providers at any time?

You can switch providers anytime. However, be aware of potential cancellation fees and ensure continuous coverage during the transition.

• How do I know whether I'm eligible for car insurance discounts?

Review your insurer's discount offerings and inquire about eligibility. Factors like a clean driving record, safety features of the vehicle, and affiliations can qualify you for discounts.

• How does driving behaviour affect car insurance cost?

When renewing car insurance, the insurance providers emphasise your driving behaviour and consider your past claim records. Following traffic rules and careful driving helps to maintain a clean driving record. Additionally, you can avail of a No Claim Bonus (10% - 50% discount on premium) on your renewal premium if you don't make any claims during the policy term.

• How do vehicle make and model affect car insurance cost?

The car insurance premium depends broadly on the type of car you buy. And it's pretty straightforward. Expensive cars have higher maintenance and repair costs; therefore, the insurance premium for such vehicles is relatively higher. In simpler words, cheaper car models may come with lower insurance premiums. Bear in mind that insurance for diesel cars may cost more than their petrol counterparts. On the other hand, you can save considerably on insurance costs if you install safety features (like anti-theft devices) in your car.

• How does the vehicle’s age affect car insurance?

Buying comprehensive car insurance policy for a brand-new car may cost more than for an old model. However, it depends on the insurance provider's policy. Compared to new cars, old vehicles cost less to repair, but they are more susceptible to damage because of wear and tear.

Conclusion

Getting the best car insurance deal is not difficult. All it takes is a little research and review. But learning the know-how and having a clear direction on to-dos indeed makes things easier.

You can buy ICICI Lombard's car insurance, which provides reliable coverage at pocket-friendly premiums.

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. 

As per the Motor Vehicles Act of 1988, it is mandatory for every vehicle plying on Indian roads to have a valid motor insurance policy. Non-renewal of motor insurance can land a vehicle owner in trouble, with a fine of ₹2,000 or imprisonment of up to 3 months, or both. Hence, it's essential to renew your car insurance policy promptly.

However, before renewing your car insurance, there are certain factors you should keep in mind. For example, rather than physically visiting your insurer's office, you can choose to renew your car insurance policy online. This way, you can complete car insurance renewal quickly and conveniently from the comforts of your home.

Read ahead to know some useful tips you should keep in your mind while renewing car insurance online.

Details required for car insurance policy renewal

To renew your car insurance online, you’ll need the following information:

• Existing Policy Details: Your current insurance policy number and insurer details.
• Vehicle Information: Registration number, make and model, year of manufacture, and fuel type.
• Personal Information: Name, contact details, and address as per the registration certificate (RC).
• No Claim Bonus (NCB) Status: If applicable, this will be considered for discounts.
• Add-on Preferences: If opting for comprehensive car insurance, decide on extra coverage like zero depreciation, engine protection, or roadside assistance.
• Payment Details: A valid credit/debit card, UPI, or net banking details for online transactions.

Steps for online car insurance renewal

Renewing your car insurance online is an easy and hassle-free process. Follow these steps:

1. Visit the Insurer’s Website or an Aggregator Portal: Log in to your insurer’s website or a trusted insurance comparison platform.
2. Enter Your Details: Provide your car’s registration number and current policy details.
3. Select Your Coverage: Choose between third-party insurance or comprehensive car insurance, and add any additional riders if needed.
4. Check Premium & Discounts: Verify the final premium, ensuring your No Claim Bonus (NCB) is applied if eligible.
5. Make the Payment: Use secure payment options like UPI, net banking, or a credit/debit card to complete the renewal.
6. Receive Your Policy Instantly: Once the payment is successful, you’ll receive the renewed policy via email.

Things to keep in mind while renewing car insurance

To ensure smooth renewal and maximum benefits, consider these key factors:

• Policy Type: Decide if you want to continue with third-party coverage or switch to comprehensive car insurance for broader protection.
• Premium Affordability vs. Coverage: A lower premium might seem attractive, but ensure it doesn’t compromise essential coverage.
• Add-on Benefits: Evaluate whether you need extra features like zero depreciation, return-to-invoice, or roadside assistance.
• Voluntary Deductibles: Opting for a higher deductible reduces your premium but increases out-of-pocket expenses during claims.
• Claim Settlement Ratio: Check the insurer’s claim settlement ratio to make sure they have a good track record of processing claims efficiently.

Common mistakes to avoid when renewing your car insurance plan online

Many car owners make avoidable mistakes during renewal, which can lead to financial losses or claim rejections. Here are some tips on how to make car insurance renewal an error-free process-

• Depending Upon Someone Else

Rather than depending upon someone else or asking a broker to do it on your behalf, you can always renew your car insurance policy yourself. New-age insurance companies have simplified the process of online car insurance renewal. All you need to do is head here to our website, enter your renewal details and pay the premium online.

When you renew your car insurance policy yourself, you are in a better situation to analyse your requirements, determine the extent of coverage, and make an informed decision.

• Waiting Till the Last Date

As mentioned before, driving an uninsured car is a punishable offence under the Motor Vehicles Act, 1988. Hence, you should renew your car insurance policy well before its expiry date. Additionally, renewing your car insurance before its expiry date may save you from the hassles of getting your car re-inspected by the insurance provider.

Also, suppose you fail to renew your car insurance policy even after 90 days of its expiry date. In that case, you will lose out on your accumulated NCB as it will automatically get reset to zero.

• Not Choosing the Right Cover

While renewing your car insurance policy, you can add/modify your policy coverage and add-ons. There are two types of car insurance cover you can avail of – standalone third-party car insurance liability cover or a comprehensive cover (third party liability + own damage cover).

As per the law, you should mandatorily renew your car insurance policy's third-party component before its expiry date. However, a wise decision is to opt for the comprehensive cover since it also keeps your car financially protected against the damages, should there be an accident or collision.

• Not Choosing the Correct IDV

When you opt for a comprehensive car insurance policy, you're required to set an Insured Declared Value (IDV) of your vehicle. This will be the maximum value the insurance provider is liable to pay in case of the total loss of your car.

It's important to choose the right IDV for your car. In case you choose a lower IDV, you may not get enough compensation if your car gets damaged beyond repairs. On the other hand, if you choose unnecessarily high IDV, it may swell up the premium amount for your car insurance renewal.

• Not Claiming NCB

NCB or No-Claim Bonus is the insurance provider's discount to the policy buyer after every claim-free year. So, if you haven't made any claim during the current policy period, do not forget to claim NCB at the time of renewal. By claiming the NCB, you can get up to a 50% discount on the car insurance premium calculated (for own damage cover), which you need to pay during your car insurance policy renewal.

• Not Choosing the Correct Add Ons

Many insurance companies allow you to attach add-ons or riders (at an additional premium) with your car insurance policy. These add-ons are meant to enhance the coverage of your policy. You need to be diligent while selecting the add-ons at the time of renewal. It's because you neither want inadequate coverage nor an unnecessarily high premium.

Some add-ons we recommend adding at the time of car insurance policy renewal include engine protection cover, zero depreciation cover, accessories cover and roadside assistance cover.

FAQs

1. Can car insurance be renewed after it expires?

Yes, but if the policy has lapsed, your car may require an inspection, and you could lose benefits like NCB. It’s best to renew before the expiry date.

2. What is the difference between third-party car insurance and comprehensive car insurance?

Third-party insurance policy provides coverage against damages to other people and their property, while comprehensive car insurance covers third-party liabilities and damages to your vehicle.

3. How do I check if my No Claim Bonus (NCB) is applied?

During renewal, your insurer will display the NCB discount if you haven’t made any claims in the previous year. You can also verify it in your old policy documents.

4. Can I change my insurer while renewing my policy?

You can switch insurers during renewal. Ensure your No Claim Bonus (NCB) is transferred to the new insurer.

5. Do I need to carry a hard copy of my insurance policy?

A digital copy stored in DigiLocker or mParivahan is legally valid and can be used as proof when required.

Conclusion

Renewing a car insurance policy online is a convenient and hassle-free method to keep your vehicle adequately protected against adversities. Whether you opt for third-party or comprehensive car insurance, keeping your policy active ensures compliance with legal requirements and peace of mind. Also, it allows you to choose your add ons and customise the policy to suit your requirements better.

In case you're looking to renew your car insurance policy, you can do it easily on our website. ICICI Lombard's car insurance renewal process is simple and hassle-free. All you need to do is head to our renewal page, enter your policy details, and pay the premium using your debit/credit card or net banking facility.

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.  

Keeping in mind environmental concerns and the population’s reliance on fossil fuels, the Indian Government plans to move towards complete e-mobility by 2030. In the Climate Risk Index 2020 released by GermanWatch, India ranked fifth in the global vulnerability ladder. This makes it all the more critical for India to adopt electric vehicle technology.

However, despite concerted efforts by the Government, sale of electric cars and two-wheelers in India hasn't reached its pinnacle yet. According to a study by Castrol, most new car buyers in India won't be purchasing electric vehicles until 2025. Many reasons can be attributed to this slow sale of electric cars in India, such as lack of infrastructure, high car pricing, and the time-taking battery charging process. We recommend you to buy a car insurance with your brand new electric car to ensure protection against any unforeseen circumstances.

What exactly is an electric car?

An electric vehicle or an e-car runs on an electric motor instead of conventional petrol, diesel or CNG engine. It gains its power by utilising the electricity stored in the motor's battery. Here, the electric motor does the job of a fuel engine. You can recharge the battery of an e-car again and again. Today, there are three kinds of electric cars available in India:

• Solar-powered electric cars which can be recharged using solar energy
• Hybrid electric cars, which can be powered by both internal combustion and battery
• Electric cars which are entirely battery-operated

What are the advantages of using electric cars?

Apart from being environment-friendly, electric cars offer dramatically lower operating and maintenance costs as compared to conventional petrol and diesel cars. Let's look at some of the advantages of using an electric vehicle:

• Puts the environment first

  Electric cars are environment-friendly. Since they derive their power from a battery instead of internal combustion engines, they do not produce any emissions. Thus, electric mobility can help a long way in reducing air pollution in urban Indian cities.

• Lower operational costs

  On average, electric cars usage may help a person reduce up to 70 to 80 per cent of his/her fuel expenses. From the maintenance point of view, electric vehicles have 75 per cent fewer moving components than conventional cars, which translates into lower maintenance bills.

• More savings

  The Government of India has taken several steps to increase e-mobility in the country. One of them is offering reductions in road tax charges and vehicle registration fees for electric vehicles. The Government also provides subsidies and incentives to the consumers purchasing electric cars.

• Reduction in BoP deficit

  India needs to import oil from foreign countries to meet its citizens' demands. In the financial year 2019-20 alone, India imported crude oil worth 120 billion dollars, which increased its Balance of Payment (BoP) deficit with foreign countries. Switching to electric cars can help in reducing this deficit.

Are electric cars gaining popularity in India?

Though electric cars' sales were not too encouraging during the initial years, it's slowly gaining popularity among the Indian car buyers. Many top automobile manufacturers, including Hyundai, Tata Motors, Mahindra and Renault, have come up with some best electric cars for the Indian market. These cars are loaded with features and do not compromise on the power factor.

As per Google trends, electric cars' interest among the common Indian consumers has risen during the last few years. According to industry leaders, the future of the automotive industry in India looks to be electric. There also comes a need of having a motor insurance with your future electric vehicle, because these revolutionary innovations still don't guarantee to safeguard your vehicle under some unforeseen incidents.

We all love our cars, no matter what their make and model may be. Many of us want to make our vehicle stand out from others on the road. That is why we sometimes opt to modify our cars with aftermarket products or accessories. Car modification may include as little as putting a tint film on window glasses, to as much as changing the entire look of the car with spoilers, alloy wheels, etc.

However, did you know that not all car modifications are legal in India? Any illegal changes to your car may land you in trouble. It can either lead to your car getting seized or you being penalised by the traffic cops. Hence, before you take your car out for any modification, you must know about the illegal car modifications not allowed in India.

In this article, we've listed some of India's most common illegal car modifications, as described under the Motor Vehicles Act of 1988. Read on.

Common illegal car modifications and their consequences

While car modifications can make a vehicle look or perform better, many of them are restricted or outright banned under the Motor Vehicles Act. Here are some of the most common illegal changes car owners should avoid:

1. Tinted window glass with less than 50% visibility

This is one of the most common illegal car modifications many people make to their cars. Unless you're a VIP or VVIP, applying tint film on your car's window glasses, which reduces visibility by more than 50%, is illegal in India. You cannot even use sunshades on your car's windowpanes as per the latest laws.

As per rule 100 of the Central Motor Vehicles Act (CMVA) of 1988, the glass of the windscreen and rear windows of all cars in India should have a minimum visibility of 70%. Also, as per the Motor Vehicle Act, motor insurance is mandatory while driving a vehicle. Whereas, for glasses of cars' side windows, a minimum visibility of 50% is compulsory. Anything less than that, and you would be on the wrong side of the law.

2. Using fancy and loud horns

This is another common traffic law that many car owners flout in India. Changing a car's horn with a different sound or enhanced loudness is something many people prefer in our country. However, the Government of India has laid down a prescribed set of guidelines for the horns of cars running in the country.

As per these guidelines, horns louder than 100 decibels are not allowed for general cars or four-wheelers. It means that if you install fancy aftermarket horns in your car – such as sirens or pressure horns – you could be penalised as per the existing motor vehicle laws.

3. Installing loud exhaust pipes or silencers

Exhaust pipes are located at the back-bottom of a car and act as a passage for the exit of high-pressure exhaust gases into the atmosphere. They are also known as silencers in India. The company-fitted exhaust pipes in cars have catalytic converters, and hence, they not only regulate the amount of emissions that are released into the air but also control the overall sound levels.

Installing aftermarket exhaust pipes that are fancy and loud is illegal in India under Rule 120 of the CMVA. It's because they can cause more air as well as noise pollution. Further, such exhaust pipes may not be fit to conduct a Pollution Under Control (PUC) test, which is mandatory to drive a car in India.

4. Use of fancy registration plates

Many people in India wish to install designer registration/number plates on their cars. These fancy number plates come in various shapes and sizes. If you also have the same wish, remember that not all fancy registration plates are legal in India.

As per the Motor Vehicle laws, all new cars are required to have IND embossed high-security registration plates (HSRPs) only. In the case of old cars, the car owner needs to make sure that the letters on the number plate are in a legible font and not something fancy. In case a traffic police officer catches a car driver with an illegal number plate, he/she might have to shell out hefty fines.

5. Light and tyre modifications

Many people prefer to change their car's tyre and lights to enhance its aesthetic value. However, before doing so, the car owner must be well-versed in traffic laws regarding the same. As per the CMVA rules, the tyres of a car can be changed, but their dimensions need to be within the permissible range for that category.

For example, if you have a mid-range car, you can opt for tyres that are available for higher variants of the same car model. Similarly, you can change the headlights or taillights of a car but can't violate the same colour rules. You can upgrade from halogen lights to white LED lights, but you cannot opt for red, green, or blue lights as your car's headlights.

The impact of car modifications on insurance

Modifying your car risks legal consequences and can impact your car insurance policy. Here’s how:

• Policy invalidation: If you install a modification that isn't reported to your insurer, especially structural or performance-related changes, your insurance provider might reject claims.
• Premium hike: Certain modifications, like engine tuning or alloy wheel changes, can raise insurers' risk factors, resulting in increased premiums.
• Third-party car insurance implications: Since third party car insurance iis mandatory under Indian law, any illegal modification that contributes to an accident or violation may lead to legal complications and possible claim denial.

To avoid issues, always inform your insurance provider before making any modifications and stick to those that comply with Indian laws.

Conclusion

Mentioned above are some illegal car modifications that you should avoid making to your car. Apart from these, if you make any other changes to your vehicle, such as colour modification, change of engine, fitment of alternative fuel kit, etc., you need to make sure that you inform your Regional Transport Office (RTO).

Not doing so can attract heavy traffic fines or imprisonment, or both. Also, you should make sure that you carry all mandatory documents, such as a car insurance policy, registration certificate (RC), PUC certificate, tax token and your driving license, along with you every time you take your car out for a drive. Motor insurance doesn't just keep you compliant with the law; it ensures you're protected in case of collisions, calamities and theft too.

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.

Although only third-party car insurance is mandatory as per Motor Vehicle laws in India, we recommend every car owner procure comprehensive car insurance. Unlike third-party insurance, a comprehensive plan like our Private Car Package Policy protects you against damages to third parties as well as damages to your own vehicle.

However, since a comprehensive car insurance policy provides greater coverage, it comes with a higher price tag. And that is why many car owners may refrain from buying such a policy. But, by doing so, they expose their vehicle to the risks of theft and damages.

If you don't want to spend more on your car insurance, you can reduce your premium by opting for a voluntary deductible while buying the policy. In this article, we'll explain what voluntary deductible means, how it can help reduce your premium, and whether it's beneficial to opt for it or not. Keep reading.

What is a voluntary deductible in a car insurance policy?

A voluntary deductible in a car insurance policy refers to a fixed amount that the policyholder agrees to pay out of his/her pocket while buying car insurance. Unlike compulsory deductible, the voluntary deductible component is purely the car owner's choice and is not imposed by the insurance provider.

Let's understand voluntary deductible with the help of an example. Suppose you've purchased comprehensive car insurance with a voluntary deductible of ₹2,500. Now, let's assume that your car got damaged in an accident, drawing a bill of ₹20,000 for repairs.

In such a case, your insurer will deduct a compulsory deductible (which is fixed by the regulatory authority based on your vehicle engine capacity) along with your chosen voluntary deductible from the claim amount. Assume the compulsory deductible is ₹1000. In this case, you pay ₹1000 + ₹2,500 = ₹3,500, and the insurer pays ₹16,500.

How does voluntary deductibles help in reducing premium?

When you opt for the voluntary deductible under your car insurance policy, you reduce the liability of your insurer by promising to bear a part of the claim amount. As a result, your insurance provider sees a reduced payout on claims, therefore choosing to reduce your premium to a certain extent.

The amount of voluntary deductible chosen by you is inversely proportional to the premium amount you need to pay. It means higher the voluntary deductible, lower the car insurance premium. However, you should note that a voluntary deductible is not available for third party car insurance policies.

The maximum discount that you can avail on your motor insurance premium by opting for a voluntary deductible is listed in the table below:

5 important facts about voluntary deductible in car insurance

Here are the five crucial facts about voluntary deductibles in car insurance that you must know as a car owner:

1. You need to pay the voluntary deductible only if you make a claim

You must pay the voluntary deductible amount only if you claim your car insurance policy. Moreover, you don't have to pay the deductible amount unless your insurer approves your claim. Once your claim gets approved, your insurer will ask you to pay the deductible amount at the workshop. The insurer will settle the remaining bill amount.

2. Voluntary deductible is not the same as co-payment

It's a common misconception among many people that voluntary deductible and co-payment are the same things. However, this isn't true. While voluntary deductible is a fixed amount a policyholder must pay at the time of claim, co-pay refers to a percentage of the claim amount that has to be borne by the policyholder.

3. Voluntary deductible is not an additional expense

Many people think that voluntary deductible is an additional expense a car owner needs to bear. However, this is a misconception. You don't have to pay anything extra to opt for a voluntary deductible on your car insurance policy. Opting for this deductible is a choice that is purely dependent on the policy buyer, and the insurer can never force him/her to do so.

4. The compulsory deductible is not eliminated even if you opt for voluntary deductible

If you think that by opting for a voluntary deductible on your car insurance policy, you can get rid of compulsory deductible, you're mistaken. When you raise a car insurance claim, you're required to pay the sum of both – compulsory deductible plus the voluntary deductible.

5. Opting for a voluntary deductible is not always beneficial

Contrary to popular belief, it's not necessary that opting for a voluntary deductible will always be beneficial for you. Though it's beneficial for drivers who may never make a claim, it can turn out to be disadvantageous for those who drive in an accident-prone area or raise frequent car insurance claims.

Should you opt for a voluntary deductible or not?

While you can't get rid of compulsory deductibles on your car insurance policy, opting for a voluntary deductible is a choice that purely rests on you. Though it helps lower car insurance premium, it also increases your liability or risk when you meet with an accident. Hence, if you think that the chances of you making a claim are very slim, opt for a voluntary deductible; else, do not.

If you want to avail of comprehensive car insurance online at the most competitive price, you can head to the Car Insurance section on our website. Enter your vehicle's details and personal info to get a quote. Based on the policy you choose, you can pay the premium via credit/debit card, net banking, or any other online payment method and complete your purchase.

Difference between compulsory deductible and voluntary deductible

The table below highlights the key difference between compulsory deductible and voluntary deductible:

Conclusion

In conclusion, understanding voluntary deductibles helps you take control of your insurance costs. If you’re confident in your driving and want to save on premiums, choosing the right deductible amount while buying car insurance online can offer both flexibility and savings—without affecting your no claim bonus in car insurance.

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.