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.

Are you planning to buy a used vehicle in India? You're not alone! Second-hand bikes and cars are purchased both online and offline daily in our country. However, before you make a purchase, it is always best to be prepared for the paperwork that you'll have to take care off. Don't fret, we've done the homework for you and put a document checklist together. Take a look!

Vehicle purchase document

The first document you need to collect is the original invoice of the vehicle. Check for the owner's name, chassis number, engine number and other essential details. It will help you confirm the real owner of the car or bike and also help you determine whether the vehicle is being sold for the first time. If the seller is not able to provide it, he/she should give a receipt to serve the purpose.

Registration document

The most critical bike or car document that you need while purchasing a pre-owned vehicle is the registration document also called a Registration Card (RC). You will need to transfer the RC to your name. Visit your RTO and submit the following documents to begin the transfer process:

• Original RC
• Form 29 & 30
• Copy of bike/car insurance papers
• Copy of valid Pollution Under Control (PUC) certificate
• Copies of residence proof, such as a voter ID, passport or electricity bill
• Crime Report of NCRB

If the RC is missing, submit Form 26 and copy of First Information Report (FIR) filed at the police station to the RTO for a duplicate RC.

Download RTO forms

No Objection Certificate (NOC)

In case there is a bank seal on the RC book, it means the original buyer took the vehicle on loan, and the RC cannot be transferred to you. You will need to take Form 35 stamped and collect an NOC from the car or bike loan provider/bank, stating loan clearance. The seller must also submit RTO Form 28, which is an NOC proving no liabilities exist on the owner, which can legally prevent him/her from selling the vehicle.

Transaction documents

You will need to make the purchase/sale agreement or the sale transaction receipt with the vehicle owner. The agreement must be executed or notarized on a stamp paper. You will also need to issue a delivery note or challan, which indicates you've taken the physical delivery of the vehicle from the owner, and you will be henceforth responsible for all types of litigation, traffic offence, etc.

Tax receipt

Road tax payment at the right time is a must for both four-wheelers and two-wheelers. It is typically paid at the time of registration. Collect the RTO road tax receipt copies from the owner of the vehicle before sealing the deal.

Motor insurance

Third-party legal liability insurance is mandatory for all vehicles in India, including both cars and bikes. If you start driving the pre-owned vehicle without insurance, you may end up paying an unnecessary fine. Motor insurance also protects you from accidental damage and natural calamities. So transfer the insurance policy for the used vehicle in your name. The insurer may ask for an inspection of the car or bike before transferring the policy to you.

It is a good practice to check the number of claims the owner has made on his car insurance policy or bike insurance policy in the last few years, as this will indicate the number of accidents and repairs the vehicle has seen.

If the insurance policy has expired, you need to buy a new one before taking the vehicle on the road. Check our motor insurance policies online to secure your ride.

Pollution certificate

Before purchasing the vehicle, make sure that the owner has the Diseases Caused by Air Pollution. The PUC document is mandatory for all vehicles. If you don't have the PUC certificate, you may have to pay a hefty fine on the road. If the owner does not furnish the PUC document, get the pollution test done for the vehicle before possession.

Payment documents

When you make the payment to the seller, keep a couple of copies of the DD/cheque you issued. Also get a few copies of the payment receipt, duly signed by the seller.

Updated on 10-04-2025

Are you excited to sell your car and upgrade to a better model? That’s wonderful, however, selling a car comes with an additional set of responsibilities! While you may be focusing a lot on buying your new car, there are a few things you have to consider in regard to selling your old one.

You need to ensure that you transfer your motor insurance policy and other documents in the right manner to avoid any issues that may arise in the future. Here’s what you need to know for a smooth handover.

How to Transfer Car Insurance from One Person to Another In India?

You will continue to be held responsible for any liability related to the car, even after you sell it if you don’t follow the proper documentation process. To free yourself of future liabilities associated with your car, you need to pay attention to two aspects of the process: Transactional and RTO paperwork.

Here are the key steps to follow:

1. Inform the Insurance Company: Once the sale is finalised, the seller must inform the insurance company about the change in ownership and request for policy transfer.
2. Obtain a New Registration Certificate (RC): The new owner must obtain the updated RC in their name from the Regional Transport Office (RTO).
3. Submit the Required Forms: The seller needs to fill out and submit Form 29 (Notice of Transfer of Ownership) and Form 30 (Report of Transfer of Ownership) to the RTO and insurance provider.
4. Provide Necessary Documents: Both the seller and buyer must submit the required documents for the insurance transfer (listed in the next section).
5. Vehicle Inspection (If Required): Some insurance companies may require an inspection of the vehicle before approving the policy transfer.
6. Pay the Transfer Fee: The buyer may need to pay a nominal fee for the insurance policy transfer.
7. Receive the Transferred Policy: After verification, the insurer will issue a new policy document in the name of the new owner.

It is advisable to complete this process within 14 days of the sale to ensure uninterrupted insurance coverage.

Documents Required to Transfer Car Insurance to New Owner

Once you’ve finalized the deal with the prospective buyer, you should get a sale affidavit and delivery note signed by them. Make sure to attach the prospective buyer’s identity proof and address proof like PAN Card and Aadhaar Card. Don’t forget to attach the cheques that you are receiving as the payment to the sale affidavit. It’s essential to get the sale affidavit notarised and signed as it acts as an agreement transferring all vehicle-related liabilities to the buyer.

Here are the important car insurance transfer forms required by the RTO.

• Form no. 28
  This is an application for receiving an NOC from the registering authority. This is essential as it acts as proof that you have no unresolved liabilities or obligations related to the vehicle.
• Form No. 29
  This form acts as a notice to the RTO that the vehicle is being sold by the owner and that all required documents have been handed over to the buyer.
• Form No. 30
  This form acts as a confirmation of form no. 29.
• Clearance Certificate
  The clearance certificate is a simple application made to the RTO, informing them that your vehicle has been sold. It includes the details of the buyer, seller, and the vehicle.

No Claims Bonus in Car Insurance Transfer

The No Claim Bonus (NCB) is a discount offered to policyholders who have not made any insurance claims during the policy term. It helps reduce the premium for the next policy renewal. However, the NCB is associated with the policyholder, not the vehicle.

When selling a car, the NCB does not transfer to the new owner. Instead, the seller can retain it and use it for their new vehicle’s insurance. The buyer will have to build their own NCB from scratch.

Documents Required for NCB Retention Letter

To retain the NCB when selling your car, you must obtain an NCB retention letter from your insurer. The required documents include:

• Sale Agreement: Proof that the vehicle has been sold.
• Request Letter for NCB Retention: A formal request to the insurer.
• Copy of the Existing Policy: The current insurance policy of the sold vehicle.
• Delivery Note: Proof the vehicle has been handed over to the new owner.
• Cancelled Insurance Policy: Some insurers may require the previous policy to be officially cancelled before issuing an NCB retention letter.

Once the insurer issues the retention letter, the seller can use the accumulated NCB for insuring their new vehicle.

Can No Claim Bonus Be Transferred to the New Car Owner?

No, the No Claim Bonus is tied to the policyholder, not the vehicle. It cannot be transferred to the new car owner. The buyer must start from zero and build their NCB over time by maintaining a claim-free record.

However, if the seller purchases a new vehicle, they can apply the retained NCB to the new insurance policy, reducing their premium cost.

What Happens if the Car Insurance Transfer Remains Incomplete?

Failing to transfer the car insurance policy can lead to several complications:

• Claim Rejection: If the new owner files a claim without transferring the insurance, the insurer may reject it due to a mismatch in ownership details.
• Legal Liabilities: The original owner may still be held liable for any accidents or damages caused by the vehicle.
• Policy Lapse: Without a transfer, the existing policy may become void, leaving the vehicle uninsured.
• Traffic Penalties: Driving a vehicle with an insurance policy under a different name can lead to legal penalties.

To avoid these issues, ensure the insurance policy is transferred to the new owner immediately.

Why Do You Need to Transfer Car Insurance?

The buyer doesn’t have to take a fresh policy for the car; you can simply transfer your existing policy to them when you’re selling a car to them. Vehicle insurance transfer will also rid you of any legal issues that may crop up later. You must fill out a fresh proposal form and submit it to the insurance company. Attach all the documents listed above, as well as the previous policy. On receiving these documents, the insurance company will pass the endorsement of the transfer. The entire activity must be completed within a period of 14 days. Now you know the steps you need to go through for a hassle-free handover of your car and its policy cover. As important as it is to transfer your old car’s policy, it’s also crucial to get insurance coverage for your brand-new ride.

FAQs

1. Can I transfer my No Claim Bonus to another person?

No, the No Claim Bonus is non-transferable and belongs exclusively to the original policyholder.

2. Can I transfer RC without transferring vehicle insurance?

No, you need a vehicle insurance policy for transferring the RC to the new owner, because the insurance policy is required by RTO for the transfer of the RC.

3. How long does it take to transfer vehicle RC?

It can take 20 to 60 days to complete an RC transfer, depending upon the procedure and requirements of the RTO.

4. Can I drive the car immediately after buying it if the insurance transfer is pending?

Yes, but only for 14 days. After that, the new owner must complete the insurance transfer to avoid driving an uninsured vehicle.

5. What happens if the buyer does not transfer the insurance?

The existing policy may become void, leading to legal and financial complications for both parties.

6. Can I cancel my car insurance after selling my car?

Yes, once the transfer is complete, or if you choose not to transfer, you can cancel the policy and apply for an NCB retention letter.

7. Can I get an NOC online?

Yes, you can get an NOC from the RTO online through Form 28. After submitting the form and related documents with the RTO, you can easily obtain an NOC for selling your car.

8. What is the cost of transferring vehicle ownership?

The vehicle ownership transfer fee is different for each state. In Delhi, it is 300-500 rupees; in Maharashtra, it is 530 rupees.

Conclusion

Transferring car insurance is an important step in the vehicle sale process. It ensures the new owner remains protected while saving the previous owner from future liabilities.

By following the outlined steps and ensuring all necessary documents are in place, buyers and sellers can have a smooth transition without legal or financial complications. Always check with your insurance provider while buying car insurance online for specific requirements and guidelines to avoid any last-minute issues. If you plan to sell your car, don’t overlook the insurance transfer—it is as important as the sale itself!

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 advancements in technology have left no industry untouched. From automobile to aviation, every industry has adopted technology to come up with innovative products to woo their customers. Like other industries, the insurance industry as well has started implementing technological developments in their business operations, making it easier for their customers to access and buy their products.

Talking about the motor insurance sector, it has seen a rapid transformation in recent years. From innovative insurance products to Artificial Intelligence (AI) based premium calculation, technology has impacted this industry in multiple ways. Let's have a look at some of the most significant technological advancements that are revolutionising the motor insurance industry:

Use of telematics for premium calculation

The insurance companies have adopted a concept called 'Usage Based Insurance' where telematics devices are attached to vehicles to monitor the risks associated with it. These telematics devices record the driving patterns of vehicle owners, including the distance travelled by them each day, the average speed at which a vehicle is driven, and how safely it is being driven.

These records are then used to calculate vehicle-specific motor insurance premiums, based on the risk associated with each vehicle. For example, if a car is regularly driven at high speeds on highways, the insurance premium for it will be higher as compared to a vehicle which is being driven at low speeds inside a city.

The adoption of telematics ensures a fair price for car insurance customers as it increases affordability for those who drive less and practice safe driving habits. It also helps insurance providers to accurately determine accident damages and reduce the number of fraudulent claims.

ICICI Lombard is one of the few insurers in India that uses this technology to offer vehicle-specific motor insurance policies. A vehicle owner can choose an insurance plan for his/her vehicle, based on the kilometres that he/she shall be driving in a year. In case the coverage gets exhausted, there is an option to get a top-up.

Installation of dashboard cameras for maximum car security

Insurers have started installing cameras on the dashboard of a car. These cameras can record forward, sideward, and even rearward videos. These recordings can be beneficial and can be used as evidence in case a policyholder gets involved in an accident. It provides insights about the accident to the insurers and helps them to determine the authenticity of a claim.

This will not only help in bringing down the fraudulent claims but also in expediting the claim-settlement process. Not only for four-wheelers, but some insurers are also even providing helmet cameras for two-wheelers to record an accident scene.

Smartphones apps for every insurance-related help

Many insurers in India have introduced their smartphone apps with which a user can get any help related to his/her motor insurance policy within minutes. The apps can be used for multiple purposes, such as to buy or renew the policy, raise a claim, or call for roadside assistance in case the need arises.

Additionally, these apps can be synced with car's dashboard camera so that it can record videos of an accident, record conversations with witnesses and other parties involved in the accident, and capture any relevant document on the scene. Through these apps, the policyholders can also get on a video chat directly with the insurer's representatives and justify their claim.

Use of blockchain technology

Many motor insurance companies in India have started integrating blockchain technology into their existing workflows. This helps other insurance players to access data regarding insured vehicles, including smart card details, owner details, telematic records etc.

This makes it easier for them to identify the claims and verify its authenticity. It also helps the insurers to reduce the time required for the underwriting of claims. They can now easily tap into online databases and check the vehicle owner's data and quickly assess the claim amount to be paid.

The Motor Vehicles (Amendment) Act 2019 came into effect on September 1, 2019, with an intent to curb road accidents in India and boost road safety. This massive update to the Motor Vehicles Act 1988 has led to the introduction of fresh penalties and license requirements for vehicles along with new operating standards for both personal and commercial motor vehicles.

The new Motor Vehicles Bill brings forth a jaw-dropping surge in the fines for traffic rules violators. The Bill also seeks to spread awareness towards road safety and aims to discourage drivers from flouting traffic rules and regulations.

Here are some of the key points of the Motor Vehicles Act (Amendment) Act 2019 that you must know:

• Mandatory Motor Insurance:

The Bill instructs the Central Government to create a special Motor Vehicle Accident Fund that will be designed to provide compulsory vehicle insurance to vehicle owners. Car insurance and two-wheeler insurance offered by the Government has been targeted to ensure:

• Medical treatment for road accident victims under the ‘golden hour’ scheme.
• Monetary compensation to the next of kin of a person who has died in a ‘hit and run’ accident.
• Monetary compensation to the next of kin for a person grievously injured in a ‘hit and run’ accident.
• Monetary compensation for to other victims as identified under the new guidelines.

• Vehicle Recall:

Under the amended Motor Vehicles Act 2019, the Central Government reserves the rights to recall a vehicle of any make and model if it poses a persistent threat to drivers, environment or the public at large. The ‘recall’ use has been hailed as a great step towards bringing accountability in the auto industry. With the recall clause, a vehicle manufacturer will be liable to:

• Provide full reimbursement to the vehicle owner against the recall.
• Substitute the recalled vehicle with a replacement vehicle that has similar or higher specifications.

• Road Accident Compensation:

The amended act prescribes compensation and immediate cashless treatment for accident victims with the ‘golden hour’ period. Under the clause, the golden hour is described as the ‘one-hour’ post a major accident, wherein prompt, life-saving medical treatment can be given to the victim, thus saving his/her life. The act also envisions providing interim relief to third-party insurance claimants, seeking compensation.

• Minimum compensation in case of death in a hit & run case: Rs. 2 lakh.
• Minimum compensation in case of grievous injury in a hit & run case: Rs. 50,000.

• Legal Protection for Good Samaritans:

Under the good samaritans provision, any civilian administering aid (medical/non-medical) to an accident victim will not be pursued with legal/criminal action due to the death of the victim. The same is applicable in the case of seriously injured victims. However, the legal cushion is based on three factors:

• The assistance given to the victim should be in good faith.
• The assistance should not be based on rewards expectations, monetary or otherwise.
• The assistance given should be entirely voluntary.

• Increased Penalties:

The main talking point of the new Motor Vehicles (Amendment) Act 2019 is the steep rise in the monetary penalties for traffic violators. Despite facing opposition from various sections, the hiked penalties have been enforced and have already witnessed rigorous implementation. If you drive without motor insurance then you will have to pay high penalty.

A majority of the states have welcomed this surge aimed at reducing traffic violations, drastically. Below is the full list of traffic violations and their revised fines as per the Motor Vehicles (Amendment) Act, 2019:

Traffic Violations & Increased Penalties

Traffic Violations	Previous Fines (Rs.)	Revised Fines (2019) in Rs.
Travel without a ticket (public transportation)	200	500
Driving without license	500	5000
Overspeeding	400	● 1,000 for light vehicles ● 2,000 for medium vehicles
Driving under the influence	2,000	10,000
Dangerous driving	1,000	Up to 5,000
Vehicle speeding/racing	500	5,000
No helmet	100	1,000 + 3 months suspension
Driving without insurance	1,000	2,000
Two-wheeler overloading	100	1,000 + 3 months license suspension
No permit vehicle	100	1,000 + 3 months license suspension
No seat belt	100	1,000 + 3 months license suspension
Riding without a helmet	100	1,000 + 3 months license suspension
Juvenile offences	N/A	25,000 fine for the guardians with 3 years jail term. Juvenile to be tried under the Juvenile Justice & Protection Act
Violation of licensing by cab aggregators	N/A	25,000 to 100,000
Driving post-license disqualification	500	10,000

• Insurance Cover – Top Priority

Be it car insurance or two-wheeler insurance, getting vehicle insurance policy done right has become a top ’to-do’ on everyone’s list. You can buy car insurance online or get your vehicle insured through third-party insurance companies.

With the implementation of Motor Vehicles (Amendment) Act 2019, rules and penalties have become stricter, thus getting yourself the obligatory insurance cover is of greatest significance.

The enforcement of the Act will ensure that the vehicle owners, especially who have two-wheelers will now be more inclined to opt for vehicle insurance. Now, if you are wondering how to avoid the steep fines and penalties for traffic violations, then simply follow this:

“Wear a helmet, put the seatbelt on, don’t drink & drive, stay in your lane, keep your license handy, and most important of all, keep your car and your loved ones safe with motor insurance."

Have you ever wondered how cars and other vehicles smoothly glide over bumpy roads without rattling everyone inside? Well, the secret lies in their suspension systems! In India, different types of suspension systems play a vital role in ensuring a comfortable and safe ride. But what exactly are these suspension systems, and how do they work? Let’s find out.

What are the different types of suspension systems in India?

Indian vehicles employ a range of suspension systems tailored to specific driving needs and roads. Here are the most common suspension systems used by Indian vehicles:

• Leaf Spring Suspension

It is a simple form of suspension that uses several metal strips, called leaves, stacked on each other to absorb shocks and vibrations from the road. It is commonly used for heavy vehicles like trucks and buses, but some cars in India also have leaf spring suspension, especially in the rear axle.

• Trailing Arm Suspension

It is a type of independent rear suspension system for cars that uses a large, horizontal arm to connect the wheel hub to the vehicle frame. The arm pivots at one point, ahead of the wheel and allows the wheel to move up and down with the road surface.

• Non-Independent Suspension

This vehicle suspension connects both wheels on the same axle with a solid beam or bar. This means the other wheel tilts slightly when one wheel moves up or down due to a bump or pothole.

• Independent Suspension

This type of vehicle suspension entails an enhanced damping effect. There is no link between the movement of the right and left wheels, which allows the vehicle to move independently. The structure is a bit complex as the layout of dampers and springs differs considerably with distinct categories of independent suspensions.

• Double Wishbone Suspension

It is a type of suspension where the wheels get mounted on two arms, usually of unequal length, along with a coil spring and shock absorber. It is used in sports cars and luxury cars, as well as some trucks and SUVs. It offers great handling, stability and control at high speeds because it has a low centre of gravity and allows each wheel to react independently from the others. 

• MacPherson Strut Suspension

It is a type of front suspension system that uses the top of a shock absorber as the upper steering pivot for the wheel. It consists of a coil spring, a shock absorber and a control arm that connects the wheel hub to the chassis. It allows the wheel to move up and down independently of the other wheels, improving ride comfort and handling. 

• Air Suspension

This vehicle suspension system uses airbags or bellows instead of conventional or leaf springs. It provides better ride comfort, handling and load-carrying capacity by adjusting the air pressure in the airbags according to the road conditions and vehicle load.

• Multi-Link Suspension

It is a type of independent suspension that uses multiple linkages to control the movement and alignment of the wheels. It offers better handling and ride comfort than non-independent suspension, as it can isolate the effects of bumps and corners on each wheel.

How does a car suspension system work?

A car suspension system comprises springs that can retain the kinetic energy produced by friction when the vehicle moves on a rough road at high speeds. Subsequently, this stored energy gets transferred to the dampers, where it converts into heat energy.

The fluid within the dampers efficiently disperses this energy, preventing overheating issues. As a result of the coordinated action between springs and dampers, you can experience optimal safety and comfort during your ride.

What are the different parts of car suspension?

Now that you know the types of car suspension, let’s look at the most common parts of car suspension systems.

• Springs: These are elastic components that store and release energy when compressed or stretched. They support the weight of the vehicle and maintain the ride height. Springs can be made of metal, rubber or plastic.
• Shock Absorbers: These hydraulic devices dampen the springs’ oscillations and reduce the vehicle's bounce and sway. They convert the spring's kinetic energy into heat, which a fluid or gas dissipates.
• Struts: They are structural components that combine a shock absorber and a coil spring in a single unit. They support the weight of the vehicle and provide lateral stability. Struts also affect the alignment and steering of the wheels.
• Control Arms: These are metal bars that connect the wheels to the frame or body of the vehicle. They allow for vertical movement of the wheels while keeping them aligned with the car. Control arms can be upper or lower, depending on their position relative to the wheel.
• Ball Joints: These are spherical bearings that connect the hubs or steering knuckles to the control hubs. They allow for rotational movement of the wheels in different directions. Ball joints can be loaded or unloaded, depending on whether they support the weight of the vehicle or not.
• Bushings: These are rubber or polyurethane cushions that reduce friction and noise between metal parts of the suspension. They also absorb vibrations and shocks from the road. Bushings can be found in various places in the suspension, such as control arms, sway bars and subframes.

Pros & cons of suspension systems

Here is a list of benefits and drawbacks of the above-mentioned suspension systems:

Leaf spring suspension

Pros:

• Simple and cost-effective to manufacture and repair
• Highly durable and capable of carrying heavy loads
• Ideal for commercial vehicles and rough road conditions

Cons:

• Offers a stiff and less comfortable ride for passengers
• Limited adaptability for modern car handling and comfort needs
• Not ideal for high-speed stability or performance

Trailing arm suspension

Pros:

• Provides improved rear-end stability and comfort
• Suitable for vehicles with front-wheel drive layouts
• Simple design that offers a good balance of comfort and load handling

Cons:

• Not as effective as other independent systems in sharp cornering
• Can be less responsive compared to more advanced suspension types
• Limited performance at high speeds or on uneven terrain

Non-independent suspension

Pros:

• Strong and rugged, ideal for rough terrain and heavy-duty use
• Easier and cheaper to manufacture and maintain
• Better for vehicles that need high load-bearing capacity

Cons:

• Poorer ride quality due to wheel interdependence
• Reduced handling and comfort, especially on uneven roads
• Higher chances of wear on tyres and suspension parts

Independent suspension

Pros:

• Superior ride quality and handling due to wheel independence
• Better grip and control over uneven surfaces
• Enhanced passenger comfort at various speeds

Cons:

• More complex and expensive to manufacture and repair
• May not handle very heavy loads as efficiently
• Requires more frequent maintenance and alignment

Double wishbone suspension

Pros:

• Excellent cornering ability and high-speed stability
• Allows for precise control over camber angle and wheel movement
• Popular in sports and luxury cars for superior ride and handling

Cons:

• More complex structure increases manufacturing and repair costs
• Takes up more space under the vehicle
• Requires skilled mechanics for proper tuning and maintenance

MacPherson strut suspension

Pros:

• Compact and lightweight design, ideal for smaller cars
• More economical and easier to maintain than a double wishbone suspension
• Enhances ride quality while keeping costs low

Cons:

• Limited adjustability in camber and geometry
• Less capable of handling aggressive driving or cornering
• May not offer the same performance as more complex systems

Air suspension

Pros:

• Offers a highly comfortable and customisable ride
• Automatically adjusts to load and road conditions
• Ideal for luxury vehicles and heavy-load commercial use

Cons:

• Expensive to install and repair
• Prone to air leaks or compressor failures over time
• Requires specialised servicing and can be less reliable in harsh climates

Multi-link suspension

Pros:

• Offers excellent handling, comfort and traction
• Each wheel can move independently for better control
• Allows precise tuning of suspension geometry

Cons:

• Complex design increases production and repair costs
• Takes up more space and may reduce boot or interior room
• More parts mean higher chances of wear and alignment issues

Frequently Asked Questions

• What is the use of coil and leaf springs?

Coil springs are helical and provide a smoother ride, commonly used in modern cars. Leaf springs consist of rugged stacked metal plates suitable for heavy-duty applications like trucks and trailers, providing load-carrying capacity and stability.

• How are dampers used?

Dampers are used in vehicles' suspension systems to control the oscillations and vibrations caused by uneven road surfaces. They work by absorbing and dissipating the kinetic energy generated by the springs. It provides a smoother, more controlled ride, enhancing vehicle stability and handling.

• What is the function of a spring?

The function of a spring is to support the vehicle's weight and absorb road impacts. The spring compresses and stores potential energy when the car encounters bumps or rough surfaces. This stored energy is released, helping the vehicle maintain contact with the road and providing a smoother ride.

• How to find out if your suspension needs servicing?

It is best to look for signs like excessive bouncing, a rough ride, uneven tire wear, pulling to one side or fluid leaks around the shock absorbers. Also, listen for unusual noises while driving. If you notice any of these issues, having a professional mechanic inspect and service your suspension is best.

• What is the function of a suspension in a car?

The function of a suspension in a car is to provide a smooth and controlled ride by absorbing road shocks and vibrations. It also ensures that all four wheels maintain contact with the road surface, improving stability, handling and braking performance, ultimately enhancing overall driving comfort and safety.

Conclusion

Understanding the various suspension systems and their functionalities is important for ensuring a comfortable and safe driving experience on India's roads. Regular maintenance has a positive effect on vehicle performance and results in fewer unplanned claims, which leads to lower premium rates for those buying car insurance online. Whenever purchasing or renewing your comprehensive car insurance, among other things, check the suspension system of your vehicle- it plays a crucial part in vehicle safety and performance.

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.

Opting for a used car leads to more savings and enables you to buy a premium model in the same budget.

When it comes to buying a car, you need to take a lot of crucial decisions, such as, what will be your budget, the type of car you wish to purchase, the make, model, and colour of the car, choosing a car insurance whether you will make the full down-payment upfront or avail the services of a car loan. One such important choice that you need to consider is whether you would like to purchase a new car or opt for a second-hand car.

While purchasing a brand-new car can be an exhilarating thought, opting for a 2nd hand car has its own advantages. According to the market surveys, the used car sales in India have gone up by 50% during the past one year, mainly due to the entry of organised players in the segment and greater assurance of the vehicle being sold. Read more to know about the 7 major benefits of buying a second-hand car instead of a new one and how it can be a smart decision for you:

Facilitates affordability and savings

The most specific advantage of opting to purchase a second-hand car instead of a new one is that it facilitates more affordability and hence, increases your savings. You can own a pre-owned car of your preferred make and model at a much lesser price when compared with a new car of the same model. For example, you can own a 3-year old Maruti Swift Dzire at an approximate price of Rs.3 to 3.5 lakhs whereas the new car will cost you around Rs. 6 to 8 lakhs, depending upon the variant. However in this case, motor insurance is something you should always rely on

Minimizing the depreciation of your vehicle

The value of a new car starts depreciating from the moment it is driven out of the showroom. Typically, the market value of a car decreases by about 20% per year for the first few years after its purchase. This means that a new car will lose roughly 50% of its value during the first two to three years. Though various cars have different depreciation rates, some luxury cars have a steep depreciation rate over the first few years.

Cars that are in low demand also lose their value quite significantly over time. You can avoid that hit by buying a second-hand car as it would have already suffered its maximum depreciation by then and will not lose much value in the forthcoming years. Some of the factors that you should keep in mind before calculating the depreciation and buying a second-hand car at much cheaper rates include:

• Brand: Some brands have prolonged value due to their popularity, while others lose their value significantly due to increasing competition. Thus, thorough research can get you close to 60 percent of a car’s price in three years.
• Vehicle Condition: It is recommended to check the fuel exhausts and any oil leaks before choosing your second-hand car which gives you the power to bargain better and save money on future repairs
• Performance: A car offering better distance per liter of fuel is your best bet as it will not only save you money but is also an indicator of a car’s good performance.

Avoiding the registration fees and other charges

When you buy a new car, you will have to make numerous payments to the Government, such as one-time registration fees, road taxes, and other RTO charges which swell up the on-road price of the vehicle. Opting for a used car is instead a better option to avoid these extra charges as it would have been already paid by the first owner of the vehicle. This, in turn, will help you get full value for your money and you don’t need to shell anything extra out of your pocket to take your favorite car out for a spin.

Document Checklist for Buying a Second-hand Car

Second-hand car buyers should check the following documents thoroughly before confirming the purchase:

• Registration Certificate
• Purchase Invoice of the car
• All documents for existing insurance policies
• Documents for the service history of the car
• Forms- 28, 29, 30, 32, 35
• Invoices for Road Tax
• Pollution Control Certificates
• Owner’s Manual

Full assurance and warranty for the vehicle

Until recently upon purchasing a motor vehicle, you had the option to customise the license plate with colour, language and font of your choice. However, all of this has changed with the Ministry of Road Transport and Highways (MoRTH) bringing about amendments in the Central Motor Vehicle Rules, 1989.

The new mandate requires all vehicles sold on or after 1st April, 2019 to be affixed with High Security Registration Plates (HSRPs). and to have a motor insurance for your vehicle is also a important factor. These plates will form a uniform pattern of displaying motor vehicle registration numbers across the country. The Ministry has taken this step to curb vehicle theft and enable easy tracking of lost or stolen vehicles.

Let’s discuss further about this new rule, how the new plates look like and how these are different from the ones already existing in our vehicles:

How do I get an HSRP for my vehicle?

According to the Ministry’s new rule, a vehicle manufacturer has to provide these HSRP to the dealers along with the vehicle. Once you make a purchase, the dealer will stamp the allotted registration number on the plates and fix them to your vehicle. You should have a two wheeler insurance or a car insurance along with the high security registration plate to stay protected during any emergencies.

Auto makers need to ensure that dealers have the necessary infrastructure to place the mark of registration on the HSRPs and print the third registration plate, wherever required. The new rule also states that the cost of an HSRP and the cost of affixing it to the new vehicle after placing the mark of registration should be included in the price of the vehicle. Thus, if your dealer demands an additional amount for the HSRP, you know that it is against the rules.

Moreover, the HSRPs come with a guarantee of 5 years, wherein if it is damaged or its letters or numbers fade away, the dealer who fitted the plate will replace it free of cost.

What does an HSRP look like?

The HSRP are made of aluminium and come with reflective tapes. They are hot-stamped with a chromium-based hologram of the Ashok Chakra in Blue on the top-left corner. At the bottom-left corner, a 10-digit permanent identification number (PIN) is etched with laser. In the middle of the chakra hologram and the laser code, ‘IND’ is inscribed in Blue.

‘INDIA’ is inscribed in font size 10, font type Arial Bold and colour Blue at an angle of 45-degree in hot stamping foil across all letters and numbers on the plate. The plates also feature two non-removable snap-on locks that, if somehow removed, will remain non-usable.

Besides the front and rear registration plates, a chromium hologram sticker with high refractive index is affixed on the bottom-left corner of the windshield from the inside. This self-destructive sticker is the third registration plate that contains details like the 10-digit PIN, the actual registration number, the engine and chassis numbers, the date of first registration of the vehicle and the name of the registering authority.

The specified background colour of the hologram sticker/third registration plate is orange for diesel vehicles, light blue for petrol and CNG vehicles and for grey for other vehicles.

Does my old vehicle need a new HSRP?

Yes. As per the Ministry of Road Transport and Highways (MoRTH), existing vehicles will also have to switch to the new HSRP. For the purpose, you have to visit your car dealer. You will be required to surrender your old registration number and destroy the number plate.

After the process of registration is over and the HSRP is affixed to your vehicle, the new registration number will be electronically linked to your vehicle.

Why is HSRP important?

You might wonder why your existing registration plate needs to be changed at all as it seems to serve its purpose well enough. However, it must be noted that the old number plates are very easy to tamper with, which makes stealing a vehicle very easy. Also, the first thing that thieves generally do after stealing a vehicle is remove the number plates.

Further, some of us customise our vehicle’s number plate very artistically, which makes it difficult for anyone, including the police, to read. Consequently, the police fails to track down such a vehicle in case it is lost or stolen. The uniquely styled HSRPs are a one-stop solution to all these problems as these plates are tamper-proof and act as a deterrent to thieves.

In India, currently, the data related to all the cars, bikes and trucks is handled manually which results in discrepancies. HSRPs will aid in creating a national database of all motor vehicles in the country.

Hence, if you are planning to buy a new car, ask the dealer to provide you with a HSRP and check for all the features mentioned above. If you already own a car or motorcycle, get in touch with your dealer and get your HSRP as early as possible.

You must also procure car insurance or two wheeler insurance for your car or bike, respectively, to stay protected against motor vehicle-related emergencies. It will help to tackle sudden expenses, in case, your vehicle breaks down or you meet with an accident.

Benefits of HSRP

The key benefits of HSRP are:

• Enhanced Security: Prevents tampering and duplication.
• Government Compliance: Helps meet legal requirements and avoid fines.
• Easy Vehicle Identification: Assists authorities in tracking vehicles efficiently.
• Standardised Format: Ensures a uniform system nationwide.
• Protection Against Theft: Unique codes prevent unauthorised use.

How to apply for HSRP online?

Applying for an HSRP online is simple and convenient. Follow these steps:

1. Visit the authorised HSRP portal for your state.
2. Provide vehicle information such as registration number.
3. Select a fitting location (RTO or dealership).
4. Make the required payment online.
5. Book an appointment for plate installation.
6. Visit the selected centre with the necessary documents, including comprehensive car insurance details, and get the HSRP affixed.

Conclusion

High-Security Registration Plates are an important step taken by the government for enhancing vehicle security and ensuring that people comply with government regulations. Benefits such as theft prevention, standardisation, and easier vehicle tracking, make HSRPs a must-have for all vehicle owners. Ensure timely application and installation to avoid penalties and contribute to a secure and efficient vehicle registration system. Also buy car insurance on time, to give your vehicle complete protection against any unforeseen event.

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.