A popular way people get scammed in our country is by buying fake insurance policies and not realizing they have been conned, until they make a claim. Save yourself from such a shock by avoiding the fake policy trap with these smart tips.

• Rely Only on Credible Sources

It’s not easy to tell if a policy is genuine or fake by merely looking at it, thereby making it important to deal with only credible sources. It’s always safer to buy an insurance policy directly from an insurance company and to eliminate the middlemen, because any dealer or agent can easily print and give out a fake policy.

• Buy the Policy Online or Pay by Cheque

In this day and age, buying an insurance policy online is the way to go. It’s not only convenient but also avoids all risk as the payment is made directly to the insurance company. In case you are buying it offline, make sure to make the payment by cheque. Ensure that the cheque is in the favour of the insurance company and not in the favour of any individual.

• Read the Policy and Verify Using the Verification Link

It’s essential to take a few minutes and read the policy thoroughly. Most insurers now offer a policy verification link on their website, which you can use to confirm the validity of your car insurance policy. In case of further assurance or to clarify details, you can also contact the customer service of the insurance company.

• Buy the Policy from Licensed Insurers

Currently in India there are 33 recognized and accepted general insurance companies. To eliminate the risk of buying a fake policy, you must buy your insurance policy only from one of these 33 insurance companies. You can check the list of these licensed companies on the website of the Insurance Regulatory and Development Authority (IRDA).

Con artists, however, find a way to duplicate the logo of these companies and still manage to sell fake policies. This calls for an additional safety measure, which is checking the existence of the motor insurance policy. You can do this by simply visiting an official branch of the company in your city or going to their website or writing to them.

• Make Use of the QR Code

For all insurance policies sold from December 2015 onwards, the IRDA has made printing of a QR code mandatory on them. The basic purpose of this QR code is to help you verify the genuineness and legitimacy of your policy. You simply have to scan the QR code on an app in your phone and it will present to you the details of your policy and of the insured vehicle.

With these smart ways you can now avoid falling into the trap of fraudsters and protect yourself against buying fake policies.

Why should you check if the insurer is genuine?

It is important to research and buy your four-wheeler insurance from a trusted insurer because of the following reasons:

• To ensure your car is truly protected: A fake car insurance policy offers no real coverage. In case of accidents or damages, you won’t be able to claim any benefits, leaving you financially vulnerable.
• Legal compliance and peace of mind: Driving with a fake insurance policy is equivalent to driving without insurance — it’s illegal and can lead to fines, penalties or even legal action.
• To avoid financial scams: Fraudulent agents may disappear after collecting payment, leaving you with no policy and a lost premium. Verifying the insurer helps you avoid these scams.
• Claim process transparency: Only genuine insurers provide clear, streamlined claim procedures — especially important for comprehensive car insurance, which covers a wide range of damages and incidents.
• IRDAI-backed protection: Legitimate insurers are registered with the IRDAI, ensuring they follow regulations and offer valid car insurance products with proper customer support.

Conclusion

Buying car insurance is a simple but important step that takes care of your vehicle and finances as peace of mind. You can ensure you are protected from potential scams by putting in a few extra minutes. You can research on your own or get in touch with the customer care department of the insurer to answer all your queries before locking in a policy.

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

Car theft is a common concern for many vehicle owners. To protect the vehicles, drivers often rely on anti-theft devices, which might help prevent theft and also influence the cost and terms of car insurance. Whether you have comprehensive insurance or third-party car insurance, installing certified anti-theft devices can offer several advantages. Let us look at the significance of anti-theft devices, the types available, their benefits and how they affect car insurance premiums.

The significance of anti-theft devices in vehicles

Car theft remains a significant issue in many parts of the world, with thousands of vehicles stolen each year. This makes investing in anti-theft devices not only wise but increasingly necessary.

An anti-theft device is a tool or system designed to prevent unauthorised access to a vehicle. These devices work in various ways— from physical locks to electronic alarms— which can deter thieves and might reduce the chance of your car being stolen.

Anti-theft devices and how they help

Anti-theft devices serve as a deterrent and a protective barrier. When a thief encounters a vehicle with an anti-theft system, the difficulty of stealing the car increases significantly. Common types of anti-theft devices include immobilisers, steering wheel locks, car alarms and most importantly, GPS tracking systems.

Immobilisers are electronic devices that prevent the engine from starting unless the original key or code is used. Additionally, steering wheel locks are physical devices that lock the steering wheel in place, which may make it hard to steer the vehicle. Car alarms alert the owner and those nearby if someone tries to break in.

Benefits of installing anti-theft devices

There are several benefits to installing anti-theft devices in your vehicle:

1. Increased security: These systems make it significantly harder for thieves to steal your vehicle, reducing the overall risk of theft.
2. Lower insurance premiums: Several insurance companies provide discounts on premiums for vehicles equipped with approved anti-theft devices. This is because such devices reduce the risk of theft claims.
3. Peace of mind: Knowing your vehicle is protected by effective anti-theft measures can give you confidence and peace of mind.
4. Vehicle recovery: If a car is stolen, devices like GPS trackers can help authorities recover it more quickly.

Even those with third-party car insurance, which typically covers damage caused to others but not theft or damage to their own vehicle, might consider anti-theft devices as a precaution to reduce the likelihood of theft-related costs.

What type of anti-theft devices do you need?

Choosing the right anti-theft device depends on several factors, including your vehicle type, where you park and your budget. Here are some common types:

• Mechanical immobilisers

These are the least expensive anti-theft devices in the market. Being visual, these should be enough to ward off amateur car thieves. It is recommended to include an immobiliser in conjunction with other anti-theft devices.

Types of mechanical immobilisers include steering wheel lock, hood lock, tire lock, gear shift lock, ignition/steering wheel column and crook locks, etc.

• Electronic immobilisers

Many vehicles today come with standard car keys and fobs that protect their cars via electronic immobilisers. These built-in transponders or microchips send signals to the ignition and fuel pump system. The ignition will work only if it receives the correct signals or it remains static.

• Car alarms

Car alarms feature electronic sensors designed to activate when a vehicle is encroached. This helps in detecting unauthorised entry, breaking glass, sudden movement and perimeter violations. When the sensors detect a threat, a siren activates, alerting the car’s driver and everyone else within earshot. Additionally, you can also include a sticker on your car stating that it is protected by an alarm; this should keep away most intruders!

• Vehicle tracking systems

It provides real-time location of the stolen vehicle using Global Positioning Systems (GPS). Vehicle Tracking Systems are sold with service contracts, and have a reputation for recovering vehicles a mere hour after they have been stolen.

The impact on car insurance

Installing anti-theft devices can have a positive impact on your car insurance. Insurers assess risk when setting premiums, and vehicles with anti-theft measures are seen as less risky. As a result, insurance companies often offer reduced premiums or discounts.

For example, comprehensive car insurance policies, which cover theft and damage to your vehicle, may become cheaper if your vehicle has an approved immobiliser or alarm. Even those with third-party car insurance can benefit indirectly. Although third-party policies generally do not cover theft, installing anti-theft devices can reduce the risk of needing to upgrade to a more expensive policy later.

Things to consider while choosing anti-theft devices

When selecting anti-theft devices, keep the following in mind:

• Compatibility: Ensure the device works well with your vehicle make and model.
• Certification: Choose devices that are approved or certified by recognised bodies.
• Ease of use: Some devices require regular activation or maintenance. Pick one you are comfortable using consistently.
• Cost vs benefit: Balance the cost of installation and maintenance against potential insurance savings and security.
• Professional installation: Some devices, like immobilisers or GPS trackers, require professional installation to function properly.
• Updates and support: Electronic devices may need software updates or customer support. Check these options before purchase.

Conclusion

Anti-theft devices are an important investment for vehicle owners. If you hold a comprehensive policy or third party car insurance, installing the right combination of anti-theft devices increases your vehicle’s security and reduces risks.

However, while these devices act as strong deterrents and may even reduce insurance premiums, they are not a substitute for proper insurance coverage. Accidents, natural disasters and other unforeseen events can still occur, making it essential to have a reliable insurance policy in place. Investing in anti-theft measures, along with securing the right car insurance, provides a well-rounded approach to protecting your vehicle and your peace of mind.

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.

Road trips are fun and let you travel far and beyond with the convenience and luxury of your own car. While Indian highways now have every facility available, from your favourite burger place to medical stores and garages, to ensure a smooth ride you need to be well-prepared. Impromptu or a well-planned trip, ensure the following before driving off for a memorable experience:

Check Tyre Pressure

Too much pressure reduces grip and increases average, while too less will give you a better grip but reduced fuel efficiency. Check the tread of your tyres to analyse their health. In addition, it is not advisable to drive with worn out tyre treads as it can seriously impact the handling quality of your ride.

Fill-up All Fluids

Ensure that the levels of the engine oil, brake fluid, power steering fluid, coolant are at an optimum level. These increase the life and performance of the car engine, thereby reducing the chance of breakdowns.

Upgrade Your First Aid Kit

A first aid kit is your first line of defence against emergencies and life threatening situations that may happen at any time. Be prepared with a first aid kit that contains specific medicines for particular medical conditions that your passengers may be prone to such as asthma, allergy, antibiotics and painkillers.

Carry Spare Tyre, Puncture Repair Kit and Tools

Tyres are exposed to the most wear and tear, which makes it essential to bring along a spare tyre, tool kit and puncture repair kit. Pre-planning can save you from being stuck in middle of nowhere without a spare tyre.

Charge Battery

Check if your battery is properly charged and won’t cause a problem during your trip. Double check for corrosion on terminals, clean it with baking soda, water and a toothbrush to ensure better conductivity.

Fix Washer Fluid and Wipers

Your windshield should be clean from debris and build-ups. Make sure your wipers are clean and working properly. Maintaining the levels of washer fluid and water will ensure a longer life for your wipers and avoid your windshield from being scratched.

Ensure the Safety of Co-passengers

Seatbelts are often considered as an inconvenience. However, studies have shown that people have an exponentially higher rate of survival in case of an accident if seatbelts were on.

Go for a customised seatbelt in case you are uncomfortable or get extenders that ensure you are safe and not suffocating. Although not mandatory, children should never ride in the front passenger seat. Strap them in the back seat, and if possible, get a car seat for toddlers and infants.

If your car has a central door-locking mechanism, ensure you have the child lock feature on. In addition, make sure all your doors are closed properly before you start your car.

Avoid Drinking and Driving

This one is a no-brainer. When you drive under the influence of alcohol or other substances, it compromises your alertness and sense of judgement. This can cause harm to you as well as others around you. Don’t do it.

Light up Appropriately

This includes headlights, high beams, fog lights, brake lights, indicators and reverse lights. A bad light can easily cause an accident during night-time.

If you are one of those people who have more than one car at home, or have multiple cars registered on the same address, then you would understand the problems that crops up where insurance is concerned. Having multiple cars mean keeping tab of their premium payment dates, renewal dates and going through a lot of paperwork. But, there are car insurance plans available in international markets that provide comprehensive coverage for a minimum of 2 and a maximum of 5 cars.

These insurance policies are known as multi-car insurance, and though they are not yet available in India, we take a look at some of the pros and cons that they come with.

Advantages

• Discounts: This is among the biggest benefits of purchasing a multi-car insurance policy. The insurance company is willing to give better deals if there are more cars being insured under the same policy. A great bargain can be had as most insurers are open to discounted rates in view of the long-term association with customers. Further, it is always beneficial to offer discounts and sign up the whole family, rather than have a single policyholder’s car insured with them.
• Different Drivers: In this policy there is a main driver, and there are named drivers - people who drive the car other than the main driver. It doesn’t matter from the insurance aspect as long as any one of these drivers is in the driver’s seat. The only criterion is that the car should be registered at the same address.
• Paperwork Simplified: With multi-car insurance, it is easier to manage the insurance policies for multiple cars, as they all come under one policy. You only have to remember one renewal date, and make one premium payment for all your cars. The result is less hassle and less paperwork.

You belong to the elite club of owners for whom cars are an extension of their identity, a prized asset, a reason worth spending money, often for overhauling.

While complex repairs should be left to the technical experts, you can surely carry out some effortless preventive maintenance yourself. Here are some do-it-yourself tips to keep your car in great condition:

Car Tires

Pressure: Checking the tire pressure regularly is important as ideal pressure conditions have a bearing on fuel efficiency and driving comfort.

Cleaning: The tire treads should be regularly cleaned with water and sponge. Heat and static electricity generated in moving tires pick up dirt and grime from the road. Cleaner treads enhance the tire life.

Tire Rotation: Exchanging the tires every 8,000 km will balance the wear rate of tires, at the same time ensure improved car performance. Tire rotation is also vital for achieving an even tread wear and a long tread life.

Time to Let Go: Check the tread wear indicator on your tire to know if it is time to replace your tire. A worn out tire poses severe hazard on the road, to you as well as others.

Car Body

Wax and Polish: To maintain the painted surface of your car, opt for good quality wax and polish. A polished car is not only good to flaunt but also serves you for a longer life.

Cleaning: Always remember to clean bird droppings from the car immediately, as they contain acidic fluids that corrode the surface leaving a visibly dull patch. Also avoid body stickers, as the adhesives can damage the paint.

As per the new directive laid out by the Supreme Court and enforced by Insurance Regulatory and Development Authority of India (IRDAI), it is now compulsory for vehicle owners to buy a long-term third party Car Insurance policy. Earlier, you would get a one-year cover from your motor insurance policy but now, as per the order, the mandatory third party insurance cover for cars is three years and for two-wheelers it is five years.

So, if you have purchased a car or two-wheeler post September 1, it is compulsory for you to buy three-year and five-year third party liability covers respectively. Companies have already started selling these products. But, before you purchase any policy make sure that you compare the premiums and discounts.

A comprehensive motor insurance package consists of a third party liability cover, and an own damage component along with different, optional add-ons like zero depreciation and engine protection. Though initial costs of new vehicles would increase, a long-term policy brings several advantages.

Increase in Initial Premium Payment

For private cars, the long-term premium for three years will be approximately 3 times the one-year premium amount, whereas for two-wheelers the premium for the period of five years will be approximately 2.4 to 5.5 times that of the one-year premium amount.

This translates to a one time insurance premium outgo of ₹24,000 compared to ₹7800 for a private car exceeding 1500cc. In the case of bikes with an engine capacity of more than 350cc, the premium would go up to ₹13,000 compared to ₹2300 that is the norm.

Long-term motor insurance policies will be advantageous because as vehicles age and depreciation increases, many people tend to skip renewals or simply forget about renewing the policy. This initiative by the Supreme Court and IRDAI will help improve the penetration of insurance and bring more vehicles under the ambit of insurance.

Don’t Forget Discounts on NCB

Since the tenure of the motor insurance policy has increased to three years for cars and five years for two-wheelers, the annual benefit that NCB offered can no longer be passed onto the customer. The NCB benefit will only be available on expiration of policy tenure. Since the NCB discount is only applicable after the policy expires, insurers are offering upfront discounts on premiums to counter this loss to the customer.

“Customers can get dual NCB benefits in long-term. First, upfront NCB discount in price and secondly, higher NCB discount benefit as against existing NCB grid during renewal after three years. We are awaiting for the regulator’s approval.” says Sanjay Datta, Chief, Underwriting, Claims and Reinsurance of ICICI Lombard General Insurance.

Go For the Appropriate Combination

As the risk of accidents are high in case of two-wheelers, it makes sense to go for a long-term comprehensive cover. The advantage here is that the renewal rates are also extremely low. On the other hand, car-owners should dive deeper to pick the right combination of motor insurance cover. The overall cost of a long-term package will be cheaper in this case, but you have to consider the large one-time outgo on purchase.

The recent Kerala floods caused catastrophic damage not only to human and animal life but also to buildings and cars. In fact, it was estimated that cars worth ₹1000 crores were submerged during the floods.

While such natural disasters don’t come with a warning sign, we can do our best to stay prepared for the aftermath, like purchasing motor vehicle insurance to take care of any expense that may arise due to natural disasters. Water damage can destroy everything from your car’s interiors to your wheels. Read on to find what to do if your car is flooded with water.

Step One: Call Your Vehicle Insurance Provider

Much like any other accident, the first step in your checklist should be to call your vehicle insurance company in case your car is flooded.

Step Two: Do not Try to Start the Engine

While your first instinct when your car is flooded would be to try to restart the engine, resist this temptation. If water has already entered your car engine, trying to start your car can destroy the engine.

Step Three: Assess the Damage

Survey the extent of damage before you take the next step. Debris and mud create a waterline around the interior as well as exterior of your car.

• Water level above the dashboard: Your motor vehicle insurance company will consider the car has been totalled and will require a professional assessment from a mechanic.
• Water below the bottom of the doors: Move to Step Four

Step Four: Open the Doors

If your car is flooded, its interiors, if left unattended, can allow mould to grow. Once you open the doors and roll down the windows, do the following:

• Place towels on the floor
• Get the car to a higher ground

Step Five: Disconnect the Battery

Before you check the other parts of your vehicle, disconnecting the battery can protect you from electric shocks.

Step Six: Look Under the Hood

Do not start your engine if you see any of the following:

• Water droplets on the dipstick
• High oil level
• Water in the air filter

Step Seven: Change Oil and Air Filter

The next step to take if your car is flooded is to change the fluids. You can either carry out these repairs yourself or wait for a mechanic:

• Change the engine oil
• Change the transmission fluid

Step Eight: Check Other Signs of Damage

If you have an older vehicle, chances are the fuel system is not sealed. In this case, you’ll need to check out the following fluids:

• Braking fluid
• Clutch fluid
• Coolant
• Power steering fluid

However, if you are inexperienced and don’t know how to go about it, it is better to contact a professional car mechanic. Additionally, if your car is flooded, electrical components will be the first to get affected. A thorough check is recommended to ensure that all of them are functioning properly.

Step Nine: Check the Tyres

First, clean the tires with a hose to check for damage. Next, check the tire pressure. In case of high pressure, head to a petrol pump to get the pressure to an optimal level.

Step Ten: Total Loss

If your car is flooded and there is a lot of damage, which can create recurring problems, you should consider declaring your car as a total loss. This can potentially save you the hassle of getting it repaired every few days since issues caused due to a car getting flooded can manifest themselves several months or years, after the event.

Follow this detailed checklist in case your car is flooded to assess the situation. However, buying car insurance online is the best measure to protect your car and cover the losses in case of a natural or man-made disaster. Furthermore, a vehicle insurance policy also covers losses arising out of theft or third-party liability.

Frequent issues arising from car flooding

Flooding can lead to several serious issues in your vehicle, including:

• Engine damage: Water entering the combustion chamber can seize the engine.
• Electrical malfunctions: Wiring and sensors are highly vulnerable to water damage.
• Brake failure: Water in the brake lines can lead to inefficient braking or complete failure.
• Mould and odour: Damp interiors can breed mould and create persistent smells.
• Corrosion: Prolonged exposure to water leads to rusting of metal components.
• Airbag malfunction: Water can affect airbag sensors, making them unreliable in future collisions.

Being proactive with your car’s maintenance, opting for and knowing the right steps to take can save you from major financial losses after a flood.

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.

A comprehensive motor insurance cover prevents your financial situation from getting severely affected in the event of your car getting involved in an accident. An accident can result in your car getting severely damaged or destroyed. There are also times when the car is damaged beyond repair and has to be declared a total loss.

When a car is declared a total loss or is stolen, then the motor insurance company pays the insured, the Insured Declared Value or IDV. In layman terms, IDV can also be called the current market value of your vehicle.

The Definition of IDV

IDV is the maximum amount that the insured can claim from the vehicle insurance company in the unfortunate event of his car being stolen or declared a total loss. The value is based on the manufacturer’s selling price and is arrived at by deducting the depreciation of the vehicle. Furthermore, the IDV is solely the value of the vehicle as well as the accessories fitted, and does not cover the cost of insurance or registration.

How Is It Calculated?

The vehicle insurance  company calculates the Insured Declared Value based on several data points. Most of these data points are found in the Registration Certificate of the vehicle. Information such as the city of registration, date of registration and type of registration can be found on this certificate; apart from other details of vehicle like the make, model, cubic capacity and ex-showroom price.

Percentage of Depreciation

As the age of the vehicle increases, the percentage of depreciation also increases. In fact, depreciation kicks in as soon as the vehicle leaves the showroom. The Insurance Regulatory and Development Authority of India (IRDAI) has stated that the maximum declared value of the vehicle cannot be more than 95% of its showroom price.

This means that depreciation takes away 5% from the showroom value of the vehicle, the minute it leaves the showroom, and this percentage stays till the vehicle is 6 months old. After that, the motor insurance company calculates the depreciation based on the following chart.

This is an age of technology and information. Our everyday routine depends on how much we can learn and adapt according to the changing technologies. Just like every other part of our lives, vehicles and the way they are managed and tracked are also transforming. One technical innovation that is helping in this regard is telematics, hardware and software that are used in tracking everything that is to know about a vehicle.

What is telematics?

Telematics is the latest buzzword that has piqued the interest of various industries. It covers all types of telecommunications, vehicular technologies, road transportation, road safety, electrical engineering (such as sensors) and computer science (such as multimedia and internet). It acts like a “black box” for your vehicle, keeping a record of all the data related to it in real time.

How does telematics work in a car?

In cars, telematics systems collect real-time data using GPS and onboard diagnostics (OBD-II) ports. This data includes speed, engine health, fuel consumption, braking habits and seat belt usage. The information is then transferred through a cellular or satellite network to a centralised cloud platform. Drivers and managers can keep track of this data through a user interface, helping them understand driving behaviour and vehicle performance.

Such data is not only useful for monitoring safety but can also influence the cost of third party car insurance. Insurers can analyse driving habits to offer usage-based insurance (UBI), rewarding safer drivers with lower premiums.

How does telematics software work?

Telematics software processes and presents the information of the vehicle in a way that helps owners and other interested parties understand vehicle usage and maintenance. When the data is collected, an analysis is run by the software, which then generates reports and stores the information. Whenever the owner wants, they can check this information related to vehicle location, maintenance alerts and even driving behaviour.

Applications of telematics

Telematics technology has broad and evolving applications:

• Auto Insurance Telematics

Telematics are increasingly being used in motor insurance, with the introduction of Usage Based Insurance (UBI). The idea behind this is a pay-as-you-go system. For example, a driver who is rash and reckless will be charged for future premiums more than a responsible driver. It also eases in direct customer interaction and validation of claims in case of an accident.

• Intelligent Vehicle Technologies

The evolution of telematics has led us to Intelligent Vehicle Technologies. IVT comprises of electronic, electromechanical as well as electromagnetic devices. These devices are used in conjunction with computer controlled devices and radio receivers to aid in artificial intelligence. This helps car safety systems for making rides safer for the users.

• Wireless Vehicle Safety Communications

This kind of telematics aid in car as well as road safety. Road hazards, location and speed of traffic are transmitted on short range radios. This keeps the drivers and home users updated about the most recent traffic conditions in your area, thereby greatly reducing the chance of accidents and traffic congestions.

• Tracking of Shipments

Telematics is also used to track freight containers using Global Positioning Satellites (GPS) for increased security and safety. This feature is becoming increasingly important as more shipping companies are modernising their business infrastructure.
 Similarly, tracking the movement and position of trailers can also be carried using a mobile network or geo-satellite communication. This software directly updates the tracking details through a PC or web-based software.

• Driverless Cars

Google was the first to present us with a working prototype of self-driving cars. Since then, there have been numerous driving tests that have been deployed. The future of this technology looks promising.
 However, there are a few kinks that need to be adjusted. Companies garnered a lot of heat in the news due to minor accidents caused by driverless cars. Regardless of these trivial issues, we are looking towards a bright and innovative future.

• Family and Friends Tracking

Telematics can also help you easily locate your friends and family. With the Internet of Things (IOT) on the rise, we can expect fine-grained control of the tracking features. This in turn will help provide assistance in case of emergencies as it has been observed that if help is given on time, it can greatly impact the survival rate of the victim.

Conclusion

Telematics not only works as a vehicle tracking system, but it is also one of the tools that has changed how people own and secure a vehicle. While one should be aware of the advancements in the industry, don’t forget to cover your bases & secure your car with suitable four wheeler insurance. Whether you're a fleet manager looking to improve efficiency or an individual seeking better rates on your third party car insurance, telematics promises better and useful information and control over your vehicle.

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

Whether or not you’ve named your car, we know it’s very dear to you. However, in the busy nature of life, the task of periodic car repair and checks can be a little unrealistic. But your car still requires frequent maintenance checks for reducing future repair costs, extending its life and increasing its performance.

With these five basic DIY car maintenance and car service tips, you can take good care of your prized possession without having to be a mechanic.

• Change the Wiper Blades
  Wipers must be changed at least once a year. Old wipers trap dirt and rub it into the glass, which if allowed to go on for too long can be dangerous. Eventually this will lead to a haze effect that will scatter sunlight, blurring vision. This is a safety hazard as it will compromise your view of the road while driving. Most wiper blades are easy to change and come in a varied price range.


• Maintain the Tyre Pressure
  Maintaining the right tyre pressure will not only keep you safe but it will also help you save some extra money. Both, overinflated and underinflated tyres, are a problem because they reduce the grip, work the engine harder and increase the chance of a blowout. Moreover, tyres with the right pressure will increase your car’s fuel efficiency and longevity.


• Check the Oil Level
  It’s essential to check your car’s oil level as frequently as recommended by the manual. Oil lubricates all the moving parts in the engine so they don’t wear and tear to a point of dysfunction. A lack of oil, or the presence of dirty oil, increases the risk of overheating and shortens the life of the engine. A well-oiled engine will significantly increase the car’s efficiency and life. So get into the habit of regularly checking your car’s oil level and go for a oil change when required.


• Keep it Clean
  Keep your car clean inside out. This may sound basic but it is very important. Your car is subject to sun, acid rain, grease, smog and insects. Initially their chemical compounds will eat away the paint and eventually they will attack the metal of your car. Give your car a good wash regularly, remove all the non-essential things cluttering your car and vacuum it on the inside on a frequent basis.

In India, about 75% of the annual rainfall is concentrated in 3-4 months of the monsoon season. This results in heavy discharge from rivers, causing widespread floods during this period. Floods are also the most commonly occurring disaster amongst natural calamities in India. With changing climate patterns and increasing instances of heavy rainfall in urban areas, it is crucial to protect your car from flood-related damage. A standard four wheeler insurance policy may offer limited coverage, but with the right add-ons, you can ensure better financial protection.

Best car insurance add-ons to protect against flood damage

Not all car insurance policies provide comprehensive protection against natural calamities. To safeguard your car specifically from flood damage, consider including these essential add-ons in your four wheeler insurance policy:

1. Zero depreciation car insurance:

This is one of the most recommended add-ons, especially in flood-prone regions. A zero depreciation car insurance policy ensures that you get the full claim amount without any deduction for depreciation on replaced parts. In the case of water damage to metal, rubber or plastic components, this can be a huge cost-saver.

2. Engine protect cover:

Floods can severely impact the engine — the most expensive part of your car. If water enters the engine, repair or replacement can cost a fortune. The engine protect cover ensures your insurer pays for damages arising out of hydrostatic lock or engine seizure due to water ingress.

3. Roadside assistance:

Being stranded in the middle of a waterlogged street is not just inconvenient but also dangerous. A roadside assistance add-on can help you with towing services, battery jump-starts and other emergency help when your car breaks down due to floods.

4. Return to invoice cover:

In cases of total loss or theft, this add-on ensures that you receive the invoice value of the car, not just the depreciated IDV (Insured Declared Value). If your car gets irreparably damaged in a flood, this helps cover the full purchase price, including registration and road tax.

5. Consumables cover:

Flood damage often affects consumables like lubricants, brake oil, engine oil and nuts and bolts. This add-on ensures reimbursement for such items, which are usually not covered under a standard policy.

Steps to overcome flood damage to cars

If your car is already exposed to flooding, here’s what you should do to minimise damage and increase the chances of successful claim settlement:

1. Don’t start the car:

Turning on the ignition after water exposure can cause more damage, especially to the engine. Avoid starting the car and disconnect the battery if possible.

2. Document the damage:

Take photos and videos of the waterlogged surroundings and the affected areas of your vehicle. This evidence will help support your insurance claim.

3. Inform your insurer immediately:

Contact your insurance provider as soon as possible. Most insurers offer quick claim registration and assistance through their apps or customer care services.

4. Arrange for towing through your insurer:

Avoid towing the car on your own. Use the towing service arranged by your insurer to ensure the claim is valid and damage during transit is minimised.

5. Visit an authorised service centre:

Have your car inspected and repaired at a network garage approved by your insurance provider. This ensures cashless repairs and quality assurance.

6. Check your policy coverage:

Before the rains arrive, review your car insurance policy. Ensure it includes vital add-ons like zero depreciation car insurance and engine protection cover to stay fully prepared.

Conclusion

Flood damage can strike unexpectedly, but with a four wheeler insurance policy and the right add-ons, you can protect your vehicle from financial and mechanical setbacks. Take a proactive step today and upgrade your car insurance to ensure peace of mind, no matter the weather.

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.

Winter driving can be tough with low visibility on greasy roads. Moreover, harsh climatic conditions in the winter season can test your driving skills, even if you’re a seasoned driver. Furthermore, foggy days bring in poor visibility and hence you need to be extra vigilant and cautious while driving under under challenging winter road conditions.

Inclement weather coupled with dangerous driving and flouting of traffic rules have added to the rising count of fatal road accidents in recent years. Here are the top tips that will help you stay safe on the road and avoid the possibility of any mishap while driving in snow and winter weather:

• Lane Driving is Safe Driving

It’s always dangerous when a driver suddenly switches lanes and that too on a greasy, snowy road can be even more menacing. So, make sure you stick to a single lane while driving in snow or winter road conditions with limited visibility to reach your destination safely.

A sudden change of lane can startle the other drivers, leaving very little reaction time and can easily lead to collisions, often fatal ones. Avoid accelerating aggressively to overtake on slippery roads during the winters and when it is snowing so that nothing unexpected occurs abruptly.

• Blink Your Indicators

All those fancy lights on the exterior of your car are there for a reason and not only to jazz up your ride. When driving in winters, or snowy weather, make sure you always turn on the directional indicators before turning left or right.

While driving in snow or very low temperatures, it is extremely important to give indicators as it isn’t just about safety but also a roadside courtesy that you’d also like to be extended.

It is also advisable to let your indicators blink all the time when you are driving in these tough winter road conditions with low visibility. This will help the cars behind you gauge the appropriate distance to avoid collision on slippery winter roads with sharp turns.

• Keep Your Windows & Windshield Defrosted

Clean your windows and windshield inside and out at regular intervals to ensure that you have the best visibility while driving. One of the perils of winter driving is the fogging up of the windshield and windows from the outside. This severely limits visibility and can lead to accidents.

During the winter season, it is important to immediately get rid of the fogged-up windshields without ending up creating a mess of smudges. Go for fresh dry air intake by lowering down your windows for a while as the air in your car is already humid which further adds up to windshield fogging.

Hence, periodic cleaning is a must to maintain a decent vision of the road ahead and the traffic around you.

• Watch The Road

SIt gets difficult to control your car while driving in snow as it skids. So, enhance your winter driving tips to deal with the skids. Aim for where you want to go and not where your car wants to take you. This will help you keep your wheels pointed towards the path you want to take.

When driving in winter road conditions, make sure that you are aware of your surroundings and maintain an adequate distance between your car and the one in front of you. Vigilance is the key and following this tip will also give you enough time to react in case of an emergency and avoid traffic accidents

• Avoid Speedy Driving

Sure we all want to burn some rubber and feel the thrill of going over 100 km/h. But this stunt in winter driving is a strict NO! And also generally inadvisable... Winter is all about fog and low visibility on snowy or greasy roads and hence you should keep an eye on the speedometer.

Driving at low-speed allows you to have a better reaction and stop time.

There might be instances when you might think that there’s no vehicle ahead of you. However, take into account the low visibility and keep your speed in check to avoid any unfortunate surprises. Refrain from accelerating aggressively!

• Keep Headlights on Low-Beam

While winter driving, make sure your headlights are on low beam, even in the daytime. While it might seem like a good idea to use high beams, it does just the opposite. High beams tend to reflect the fog and further diminish your visibility.

Also, driving with high beams creates a lot of discomfort for oncoming drivers and can prove extremely dangerous for them as they are nearly blinded by the high-intensity light. Driving in winter weather is not only about your personal safety but also the safety of fellow drivers.

• Use Winter Tyres

Make sure your car has the right set of tyres that provide you with the much-needed traction on the slippery roads during the winter season or when there’s snowfall. Tyres with adequate tread will provide you more grip, while poor tyres will not clasp when driving in snow.

Winter season-specific tyres offer considerable safety in the winter road conditions and are cost-effective as well. Amongst the top tips for driving in the snow is to have winter tyres. They come with extra deep treads that have the quality of dispersing more water. This aids in diminishing aquaplaning or hydroplaning of tyres and thus provides greater hold while driving in winter weather.

Conclusion

Before winters arrive or before visiting an area prone to snowfall, keep yourself, your loved ones and fellow drivers safe by following these tips for safe winter driving. Also, make sure you have a valid car insurance policy to keep monetary troubles away in case of an unfortunate mishap while driving in the snow or winter road conditions. In addition to that, have third party car insurance to avoid any financial burden that may be caused by third-party claims due to accidents. Remember, the best way to stay safe during severe winter weather is to avoid driving altogether if possible, but if you have to, it is best to be prepared.

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

Car insurance is an essential financial safeguard for vehicle owners, offering protection against accidents, theft and damages. However, if you drive responsibly and do not make any claims during your policy tenure, you become eligible for a No Claim Bonus (NCB)—a reward in the form of a discount on your car insurance premium. The NCB is an excellent way to reduce the cost of your car insurance renewal while promoting safe driving habits.

In this blog, we will discuss the IRDAI norms for NCB, its benefits, calculation methods and whether it can be transferred or protected.

IRDAI norms for NCB

It is mandatory for car owners in India to buy a car insurance that takes care of third party damages. However, a policy that takes care of own damages becomes a necessity. These package policies are expensive, but the no claim bonus feature offers attractive discounts on the premiums.

What is a no claim bonus?

A no claim bonus (NCB) is much like a reward for prudent use of the vehicle and adhering to the rules of the road. It allows the insured a discount on the premiums if no claims are drawn from the car insurance or two wheeler insurance policy . This discount increases every year, provided, the claim has not been made yet. In other words, the safer you drive, the less you will have to pay in bike or car insurance premiums!

However, this discount is applicable only on the Own Damage premium, and not on Liability premium.

What are the NCB discount rates?

The no claim bonus feature gets you discounts in the premium ranging from 20% - 50%. However, the discount rates are dependent on the age of the policy and when the last claim was made.

Benefits of NCB

Given below are a few benefits of NCB:

1. Lower Premium Costs – If you buy a car insurance online, NCB decreases the cost of renewal premium significantly.
2. Encourages Safe Driving – Policyholders are motivated to drive responsibly and avoid unnecessary claims.
3. Transferable – NCB can be carried over even if you sell your car and buy a new one.
4. Long-Term Savings – Over time, NCB accumulation leads to substantial savings on insurance premiums.

How is NCB calculated?

The calculation of no claim bonus in car insurance is straightforward and depends on the own damage premium of the policy.

For example, if your car insurance premium (excluding third-party cover) is ₹20,000 and you have a 35% NCB:

NCB Discount = 35% of ₹20,000 = ₹7,000

Thus, your premium payable would be:

₹20,000 - ₹7,000 = ₹13,000

Can the no claim bonus be waived?

Yes, the no claim bonus can be waived on the following occasions:

1. If a claim has been made
    Any claim made from the policy resets the bonus to zero. This is followed, regardless of the size of the claim, or even if the claim was made because of theft of the vehicle.
2. Expiry of policy
    The no claim bonus will be cancelled if the policy has been expired for a span of over 90 days.

Can the NCB be protected?

Regardless of when you make the claim or how big it is, the NCB will be reset to zero if you make any claim at all. In order to ensure that the bonus is not waived after small claims, the NCB protect add on can be bought. By paying for the add on, making small claims will not affect the bonus at all. However, these claims should stay within the predetermined limit.

Can the NCB be shifted to other motor insurance policies?

In case you want to change your insurance company, the no claim bonus can be shifted to the new motor insurance policy you buy. However, you should produce sufficient proof of the NCB of your previous policy and ensure that no claims were made. The no claim bonus can also be transferred from vehicle to vehicle.

Conclusion

The No Claim Bonus in car insurance is a valuable feature that rewards responsible vehicle owners with lower premium costs. By avoiding unnecessary claims and renewing your car insurance online on time, you can enjoy significant discounts and long-term savings. Additionally, taking advantage of NCB protection plans ensures that you don’t lose this benefit even if you make minor claims. To maximise your NCB, always compare policies and choose the best plan that aligns with your driving habits.

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. 

Usage-based insurance has the potential to radically change the insurance industry

Car insurance now sold by general insurance companies in India is one-size-fits-all product. It does not differentiate between driving patterns that range from high risk to low risk. The time has come for insurance companies to hop onto telematics-driven, usage-based insurance.

You would have heard of investigators searching for the black box after every aircraft crash. The black box records all the technical and voice data while the aircraft is in flight. That piece of instrument is key to demystifying every crash or accident involving an aircraft.

In usage-based insurance, a similar mechanism is installed in a car to record braking history, acceleration pattern, time of the day a vehicle is driven, the road taken etc. The big difference, when compared with the black box in an aircraft, is that the car driving history is not just recorded but through use of telematics is relayed live to the insurance company.

In the near future, a car bought in India will come with a black box, on-board sensors, a dongle or a mobile phone app, and internet connectivity that would make it a connected car -- the car connected to other devices at home, office, other cars, and your insurance company.

What is Usage-based Insurance?

Usage-based car insurance made a debut about a decade ago in Europe and North America. Driving information is accessed online or on apps, which allows customers to monitor their driving patterns and improve their driving habits to earn discounts on insurance premium. Insurance companies offer mileage-based, and driving habits-related discounts.

Usage-based insurance is alternatively called Pay As You Drive (PAYD) and Pay How You Drive (PHYD). All the data that telematics will transmit to insurance companies will power greater data analytics and offer driver’s insurance options such as Manage How You Drive (MHYD). The number of drivers in the US and Europe opting for usage-based insurance is estimated to touch 100 million by 2020.

Car owners are likely to opt for usage-based insurance as it not only offers lower premium for low-risk driving, but it will also encourage safe driving and prevent high number of deaths due to road accidents.

Driving a car in a highly-populated city teeming with traffic is not easy. But it does more than just waste time and cause inconvenience, it also affects your car’s mileage and efficiency, which in turn raises your fuel bills. Here are a few simple and effective tips to maximise your car’s mileage.

Keep Your Tyres Inflated

Not only do properly inflated tyres reduce fuel consumption, they also increase the efficiency by 5 percent. You should get your car tyres inflated regularly and once in fifteen days is an ideal interval. However, overinflated tyres are just as bad as under-inflated ones, and thus you should stick to the manufacturer recommended levels.

Maintain the Speed Limit

Maintaining a steady speed limit between 45–55km/h is recommended not only for your safety, but also for saving on fuel consumption. By maintaining a steady speed limit and going easy on the throttle, you will see a rise in the fuel efficiency of your car by around 20 percent.

Lose the Weight

The amount of things you store in your car has a direct effect on its mileage and fuel efficiency. So get rid of the child safety seat you don’t need anymore, that worn out spare tyre and all the junk you’ve stored in the trunk. Drive around baggage-free at least while within city limits.

Roll Up the Windows

At high speeds you should roll up your windows. Even partially open windows at high speeds can impact fuel efficiency by increasing the drag and resulting in rapid fuel consumption. Opposed to popular belief, rolling up your windows and switching on the air conditioner at higher speeds will help you save fuel.

Plan a Smart Route

Before you start your trip, take 2 minutes to check the maps and plan your route. This will not only be beneficial for your mileage but will also save you from the chaos of traffic and congestion; your left foot will thank you too.

Turn the Engine Off

When you keep your engine on while your car is static, you are just burning fuel. Whenever you have to stay in one place for over 3 minutes, whether it’s at a signal or waiting for someone, turn off your engine. However, if you think the wait is going to be short, don’t turn the engine off as starting it back on will only consume more fuel.

How many times has it happened that it began pouring and your car didn’t demand to see a mechanic for repairs? Come monsoon; cars tend to need some kind of repairing or the other, thereby, making you shell out quite a bit on them. But, did you know that timely car servicing coupled with some car maintenance tips can actually help you avoid some of these expenses? Additionally, having a valid car insurance policy can help you avoid financial losses. Take notes as we compile them below to get your car monsoon ready!

1. Examine your car tyres

Check them for any signs of wear out. Today, most of the car tyres come with tread-wear indicators, and if those on your car tyre wear out, it’s time for you to have them replaced. Tyres with good tread depths are important in avoiding oversteer. They let you have a firmer grip on roads, helping you stay secured against aquaplaning when you come across potholes or spilt oil mixed with water while driving.

While you may keep a spare tyre handy, it is important to check the condition of the spare tyre as well. Look for any punctures and check the air pressure.

2. Check the wipers and their washer tank

Wiper blades do the crucial job of wiping the water away from the windshield during rains. But they are usually not used for most of the year, making dirt and grime to accumulate on them. Plus, the summer sun can be harsh on them, causing them to wear out. So check for their proper functioning, and give the blades a proper cleaning with soap water. If you find that the blades have worn out, get them replaced. Also, if the washer liquid has run down, refill using a washer liquid solution or soap water.

3. Insulate the wires and check the electricals

If there is one thing that reacts adversely to rain than mechanical parts, then it’s electricals. Make sure that all the wiring is well insulated and is in proper working condition. If you find any loose wires, connect them firmly together. Check for other electrical systems like fuses and lights. Replace the non-functioning ones. Also, it is utterly necessary that especially the battery is in peak working condition because during monsoons headlamps, wipers etc. are all being utilised to their full potential, causing it to drain out too soon.

4. Test the brakes and check the brake fluids

Brakes are very important in the rains because of the slippery nature of roads. Check the brake fluid to see that it is at the required level, if not, then you’ll have to top it up. Go to a workshop to get the brake pads and discs checked. If the pads are worn out, they won’t provide enough braking power.

Same goes for the disc; a glance can tell you if it is okay or not. If the disc has a very shiny or glazed look, then it needs to be replaced, as the pads will not be able to slow down the car due to lack of friction.

5. Clean the air filter

Your car’s air filter aids your car’s engine to function uninterruptedly. But in the monsoon, due to high humidity level and more dust, the air filter has to put in extra effort in supplying your car engine with pure air. So make sure you clean the air filter in your car and check it for proper functioning beforehand.

While the air filter is one way of protecting the car’s engine, yet another is to secure it with the Engine Protect add-on cover of our Car Insurance policy. It will have your back for any consequential loss to your car’s engine. It will also compensate for the loss arising out of water ingression, engine damage due to oil leakage and gearbox failure. Thus, going out of its way to protect your car’s engine and keeping you from spending on costly car engine repairs.

Also read:  How to maintain your car’s health during the lockdown

Customer ease is always the top priority at ICICI Lombard. As part of this effort, ICICI Lombard has launched a facility called ‘Mobile Self Inspection’ 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.

Quick and Easy Renewal

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 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 having car insurance policies of other insurance companies who want to make a shift to ICICI Lombard can also use this feature.

Uploading a Video is Really Simple

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 policy, the customer is prompted to upload the self-inspection video via the mobile app.

The video will be approved as per ICICI Lombard’s underwriting guidelines and after which the policy is generated within a few hours. If the video is found to be unclear, it can be discarded and self-inspection can be recorded again. After uploading the video, the status can be checked in the ‘My Policy’ section on the website or in the App.

If you’ve ever bought motor insurance, you’re likely to have come across the terms Vehicle Identification Number or VIN and chassis number. You must wonder why insurance companies insist on having this information. That’s because VIN is like a genetic identifier for your car. Think of it as the vehicular equivalent of a thumbprint.

What is a VIN or chassis number?

Vehicle identification number or VIN is a set of 17 characters that are unique to the vehicle, like a vehicle’s unique identity code. Yes, it is used interchangeably with chassis number because it’s stamped to the chassis of the vehicle, although strictly speaking, chassis number is part of VIN. If you locate VIN, you can identify the chassis number.

Issuing a VIN to every vehicle is standard practice across the world. It helps to mark out every vehicle whether commercial or private, make, model, manufacturer and year.

But why 17?

The alphanumerical sequence actually denotes important information. The several components of VIN are described below to help you understand your vehicle better. Please note that this is a generic break-up that is followed by most manufacturers.

The first three characters in the VIN are referred to as WMN and symbolize the country of origin and the manufacturer. The first character reveals the country where the vehicle was built. The next two characters reveals the manufacturer.

#DidYouKnow – The Society of Automotive Engineers in the USA assigns WMIs to countries and manufacturers. For India the WMIs are MA-ME & MZ. The Bureau of Indian Standards receives the WMIs from SAE and allots them to Indian vehicle manufacturers.

Vehicle Description Section

The next six alphanumerical sequences are the key to your vehicle’s details. The VDS also varies from manufacturer to manufacturer.

• The 4th character tells you the vehicle type; whether it’s a scooter or a sports bike and so forth.
• The 5th character stands for engine movement or the power range of the engine.
• The 6th character tells you the type of engine that runs your vehicle. For e.g. whether it is a double strike or single stroke engine.
• The 7th character shows the sequence of design.
• The 8th character denotes the vehicle version.
• The 9th number is a check digit to maintain VIN accuracy.
• The 10th character helps to identify the year of manufacture of the vehicle.
• The 11th character identifies the plant where the vehicle was manufactured.

The character from 12th to 17th is the vehicle’s serial number or chassis number.

Got it! But where in my car is it stamped?

This differs from vehicle to vehicle but it’s usually to be found in the following places:

• On the door frame of the front doors. Mostly it’s the driver’s side but could also be stamped on the passenger side.
• On the dashboard near the windshield.
• On the steering wheel or the steering column.
• In the inner wheel arch towards the left hand side.
• Radiator support bracket.
• On the car’s registration papers.

And where can I find the Vehicle Identification Number on a bike?

As in a car, in a bike too, VIN is located differently in different models. Often, the chassis number of the bike can be found near the handle or the motor. If you still can’t locate it, you’re sure to find it mentioned in your bike registration certificate.

Is it possible to check for it online?

Yes, you can. VAHAN, the Ministry of Roads and Transport’s online registry database hold vehicle registration details through which you can track down your vehicle details. Just follow these steps:

• Visit the VAHAN website
• Click on Know Your Vehicle Details
• Type your car’s registration number
• Hit ‘Search Vehicle

In order to meet privacy norms, the website does not provide the entire chassis number.

Good to know! What role does VIN or chassis number play in motor insurance though?

Well, the better we know your vehicle, the better we can help if the need arises. Knowing the Vehicle Identification Number/chassis number of your car or two wheeler, at one go, gives insurance players like us information that is crucial. In insurance, chassis number is reviewed to authenticate ownership and existence of the vehicle. For e.g., a car may have been written-off/stolen and sold again to an unsuspecting buyer. The insurance company, through VIN can authenticate the car or bike at the time of policy purchase. This helps to end fraud and counter bogus claim settlements. Vehicle Identification Number specially comes in handy during a claim where total loss of the vehicle has been declared. It’s also used to track down theft. The only instance where chassis number changes is when an insurance company pays a claim for replacement of the vehicle body. The chances of this happening, however, are few and far in between. But in case it does, the RTO is immediately notified.

#DidYouKnow- Chassis number can also be used to identify the type and exact shade of paint used on the vehicle. This information however, is only available with the manufacturer-repairer. VIN can also be used to order specific body parts of your car in case they need replacement.

Aside from insurance, VIN also becomes important if you’re thinking of buying or selling a second hand vehicle. By running a check on the car’s Vehicle Identification Number or chassis number, you can also establish if the vehicle has been obtained by illegal means , whether it has been used in any bike insurance or car insurance fraud, if it has ever been put up for auction, etc. Manufacturers also use VIN to issue car recalls, so it’s handy information to have if you’re buying a second hand car. By doing some research you can see if the particular model was ever recalled owing to any defect.

#DidYouKnow- VIN can also be used to get a FASTag in case a RC hasn’t been issued to the owner of a new vehicle.

Will keep this in mind going ahead. But going back in time a little, when was VIN first used?

The implementation of VIN started in the year 1954 and like every alien attack on screen ever, in the United States of America. If you scrutinise economic history, you’ll notice it coincides with the car manufacturing boom that happened in late post-war United States. It was a time when cars started to get made in large numbers and with greater engine capacity. Although from 1954 – 1981, there was no standardisation so manufacturers used different formats. In 1981, the US Department of Transport required all vehicles plying to have a 17 character VIN. This pretty much set the format for the rest of the world.

A comprehensive motor insurance cover prevents your financial situation from getting severely affected in the event of your car getting involved in an accident. An accident can result in your car getting severely damaged or destroyed. There are also times when the car is damaged beyond repair and has to be declared a total loss.

When a car is declared a total loss or is stolen, then the motor insurance company pays the insured the Insured Declared Value or IDV. In layman's terms, IDV can also be called the current market value of your vehicle.

The definition of IDV

IDV is the maximum amount that the insured can claim from the vehicle insurance company in the unfortunate event of their car being stolen or declared a total loss. The value is based on the manufacturer’s selling price and is arrived at by deducting the depreciation of the vehicle. Furthermore, the IDV is solely the value of the vehicle as well as the accessories fitted, and does not cover the cost of insurance or registration.

How is it calculated?

The vehicle insurance company calculates the Insured Declared Value based on several data points. Most of these data points are found in the Registration Certificate of the vehicle. Information such as the city of registration, date of registration and type of registration can be found on this certificate; apart from other details of the vehicle like the make, model, cubic capacity and ex-showroom price.

Percentage of depreciation

As the age of the vehicle increases, the percentage of depreciation also increases. In fact, depreciation kicks in as soon as the vehicle leaves the showroom. The Insurance Regulatory and Development Authority of India (IRDAI) has stated that the maximum declared value of the vehicle cannot be more than 95% of its showroom price.

This means that depreciation takes away 5% from the showroom value of the vehicle, the minute it leaves the showroom, and this percentage stays till the vehicle is 6 months old. After that, the motor insurance company calculates the depreciation based on the following chart.

If the age of the vehicle exceeds 5 years, then depreciation is not factored into the calculations. The IDV is computed on the basis of a report prepared by a dealer or surveyor, which is mutually agreeable to the insured and insurer, depending on the condition of the vehicle.

Importance of declaring correct IDV

The insurance premium for Own Damage (OD) cover is directly proportional to the Insured Declared Value of the vehicle. In an effort to lower the premium amount, some people declare or accept a lower IDV. But this move can cost them when the time comes for filing a claim.

Declaring a lower value for IDV will lead to a lower claim amount, since IDV is the maximum amount that is payable by the vehicle insurance company in case the car is damaged beyond repair.

Factors affecting the IDV of car

Several factors influence the IDV during car insurance renewal:

• Age of the car: Older vehicles have higher depreciation, resulting in lower IDV.
• Make and model: Premium vehicles generally have a higher IDV.
• Location: Urban areas may have higher IDV due to demand and vehicle usage patterns.
• Accessories: Fitted accessories that are not part of the ex-showroom price can add value to IDV.
• Insurance provider’s evaluation: Different insurers may offer slightly different IDVs based on their internal valuation metrics.

IDV and car insurance renewal

IDV of a new vehicle is based on the selling price listed by the manufacturer for that particular model. But when it comes to renewal, the IDV is calculated with the current applicable depreciation in mind. The owner is also given a free hand to say what he thinks the IDV should be, however, the maximum limit that he can give will be dictated by the policies set by the insurer.

The Insured Declared Value is an integral factor in the calculation of the vehicle insurance premium. The maximum IDV is obviously available only on a new car, and it decreases as the car gets progressively older. But, there are add-on covers offered by insurers that negate the effect of depreciation for a slight rise in premium.

The next time you purchase a car insurance policy, this cover is something that you can consider. Opting for this cover with your comprehensive vehicle insurance policy will not only ensure that any damages to your car are covered, but the full invoice value of the car is paid out in the event of a total loss.

Frequently asked questions

• What is the IDV of a newly purchased car?

The Insured Declared Value (IDV) of a brand-new car is typically calculated by subtracting the applicable depreciation from its ex-showroom price. For a more precise estimation, you can use a car insurance premium calculator, which also functions as an IDV calculator. It will generate a quote showing the estimated IDV, which you can adjust up or down based on your preferences.

• Is it possible to receive full compensation without factoring in depreciation?

Yes, it is. By choosing the Return to Invoice or New Vehicle Replacement add-on cover, you can bridge the gap between the IDV and the actual on-road cost of your vehicle. This ensures you receive compensation close to the original purchase price in case of total loss or theft.

• Is the IDV different for commercial and private vehicles?

IDV is determined by factors such as the vehicle’s type, current market value, age, depreciation rate and installed accessories, not by whether it is used for commercial or private purposes. You can check the IDV for both types of vehicles using an online calculator tool provided by most insurers.

• Can I choose a lower IDV to save on the premium?

Yes, but it is not recommended. Lower IDV means lower compensation during claims, which may not cover your actual loss.

• Does IDV apply to third-party insurance?

No, IDV is applicable only to comprehensive car insurance, and it does not apply to third-party policies.

• Does IDV change every year?

Yes, IDV decreases every year due to depreciation of the car’s value.

Conclusion

Understanding the concept of Insured Declared Value (IDV) is crucial when purchasing or renewing car insurance, especially a comprehensive car insurance policy. IDV impacts the premium amount and also decides the claim amount in case of a mishap. Always declare the correct IDV to ensure your car is protected at its true value and to enjoy peace of mind on the road.

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.