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.

Updated on 31 Oct 2025

When you purchase a car, it is not only about the colour, model or brand. Each vehicle has its own individuality. This is kept in a unique code known as the Vehicle Identification Number, or VIN. Just like the fingerprint, no two cars share the same VIN. It holds a lot of valuable details about the vehicle, like where it was made, its features and more. You’ll need VIN while registering the car, buying car insurance or checking its history.

Let’s look into the what, why and how of this unique Vehicle Identification Number (VIN).

What is a VIN or chassis number?

A 17-digit code that includes both letters and numbers is known as a vehicle identification number. It is given to each vehicle during production. No two cars on the globe share the same VIN, which makes it an important identification tool.

It provides specific details including the vehicle's make, model, engine type, as well as the nation and year of manufacture. It is also sometimes called the chassis number, even though they may not be technically the same.

A VIN assists authorities, insurance providers, as well as owners in keeping tabs on things such as accidents or damage, ownership history, manufacturer recalls, theft or registration troubles.

Where can I find the VIN?

The VIN is typically stamped or printed in certain areas of the vehicle. The most common location is on the dashboard near the windshield on the driver's side. Stand outside the automobile on the driver's side and look at the lower-left side of the windshield to locate it. If not there, open the driver's door and look at the inner door frame or door post.

Here are additional areas where you can find your VIN:

• Under the hood, on the engine block
• On the steering column
• Near the spare tyre compartment
• In the inner wheel arch towards the left-hand side
• Radiator support bracket

 You can also find the VIN in the listed documents:

• Vehicle registration certificate
• Insurance papers
• Car title documents
• Road tax receipt
• The car's service history or emission test documents

In short, your VIN is likely to be listed anywhere your vehicle details are officially recorded.

What do the numbers and letters in a VIN mean?

Each part of the 17-digit VIN plays a specific role. Here is what they mean:

• First character: Region where the vehicle was manufactured
• Second character: The specific country within that region
• Third character: The manufacturer, or a specific division within the manufacturer
• Digits 4 to 8: Vehicle specifications (model, body style, engine, etc.)
• Digit 9: Security check digit (employed to verify errors)
• Digit 10: Year of production
• Digit 11: Manufacturing plant code
• Digits 12-17: Serial number of the vehicle

So, from this one code alone, you can find out a lot about your vehicle. That is why a lot of people look at the VIN when purchasing a used vehicle to ensure that the details of the car match what is on sale.

What if the VIN is not 17 characters long?

If your VIN is less than 17 characters, your vehicle might have been produced before 1981. Before 1981, VINs were of different lengths, typically between 11 and 17 digits. In 1981, worldwide standards shifted, and manufacturers began using the 17-character format.

Most contemporary systems, for example, VIN check companies or insurance providers, utilise only the 17-digit VIN for their operations. Therefore, the information about older vehicles might be restricted on the internet.

Is it possible to check for it online?

Yes, you can check the VIN online. You can use a government portal like VAHAN, manufacturer websites, or vehicle history check services to find out a VIN.

Here is how to check the VIN on VAHAN:

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

Conclusion

Your vehicle identification number is not some arbitrary code. It's an important part of your car's identity. It is mandatory to use it everywhere, from vehicle insurance to registration and safety inspections. Understanding where you can find it when needed will save you time in those urgent situations, like when purchasing, selling or insuring your car.

While you're looking after the paperwork on your car and making sure it's all right, let us take care of keeping you safe on the road. Receive professional guidance on obtaining comprehensive car insurance that is tailored to you by completing the form on this page.

FAQs

•  Is the engine number and VIN the same?

No, the VIN represents the vehicle itself as a complete unit. Whereas the engine number only denotes the engine unit. They are used for different purposes.

• Is sharing my VIN safe?

Yes, sharing your VIN is safe. It's usually for verification reasons while selling cars, servicing and requesting insurance quotes.

• What if my VIN is altered?

Tampering with a VIN is against the law. If you think this has occurred, call your local RTO or police station immediately.

• Does every insurance company require a VIN?

Most insurers often require a VIN, especially if you're purchasing comprehensive insurance to ensure the policy meets your vehicle's specifications.

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

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

When a car is declared a total loss or is stolen, then the motor insurance company pays the insured the Insured Declared Value or IDV. In layman'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.

Purchasing a car is a significant decision, not only emotionally, but also financially. While many prefer new vehicles, others see second-hand cars as a more practical choice. If you are planning to buy a car, you can consider a second-hand car.

Let’s discuss the advantages of purchasing a used car, as well as the tips before finalising the purchase.

Facilitates affordability and savings

Second-hand cars are significantly cheaper. With cars losing their value over time, you can purchase a sought-after model at a relatively lower price. This also means reduced monthly EMIs if you are taking out a loan.

Minimising 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 per cent 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 litre 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 already been paid by the first owner of the vehicle.

Full assurance and warranty for the vehicle

Most recognised pre-owned car dealers provide service history and warranties for the cars they sell. This assurance ensures that the vehicle is in good condition. Even individual sellers can provide receipts, original manuals and service reports of their vehicles when you buy a second-hand car.

Add-on installations at no extra price

Many vehicle owners install add-ons like a protective film on windscreens, spoilers, bumper guards, alloy wheels, etc. They not only provide an additional protective layer to the car but also add to its looks. If you try to install these features in a new car, you will have to shell out a hefty sum of money. Buying a second-hand car can help you get pre-installed accessories at no extra cost.

Reduced rates for car insurance premiums 

Insurance premiums are based on the value and age of the vehicle. A second-hand vehicle usually has lower premiums for third-party car insurance.

Certified pre-owned vs. regular used cars

Certified pre-owned vehicles are inspected, serviced and approved by brand-authorised dealers. They are usually provided with a warranty and roadside assistance in case of a breakdown. They cost more than a regular used car, but you get additional reliability and reassurance.

On the other hand, regularly used cars are cheaper, but the health of the vehicle may be compromised. Make sure you inspect the car, test drive and verify documents before purchasing.

What to check before buying a used Car?

Here are some main things or components to check before you buy a used car:

• Engine and mileage: Check the engine quality and mileage of the car.
• Service history: Ensure the vehicle has been routinely serviced.
• Exterior and interior condition: Check for rust spots, dents, leaks and upholstery conditions.
• Test drive: Be attentive to unusual noises. Test brakes, steering, air conditioning and suspension.
• Documents: Check that the registration certificate (RC), insurance, pollution certificate and loan clearance (if applicable) are up to date.

Tips for negotiating a good deal

• Know the present market prices.
• Use minor flaws as a point of negotiation.
• Inquire about the price of future services or expenses.
• Compare quotes from both private owners and dealers.

Legal and RTO formalities

• Ensure the transfer of ownership at the RTO when you buy a used car.
• Obtain a no-objection certificate (NOC) if the RTO is in a different state.
• Get the insurance in your name.
• Verify pending challans or loans associated with the vehicle.
• Apply for a change in registration number if moving the car to another state.

Contribute to the environment

Purchasing a used vehicle is an environmentally friendly decision. It minimises the demand for fresh materials and decreases factory emissions. Recycling a car is both pragmatic and good for the planet.

Conclusion

A second-hand car can be a wise compromise between practicality and cost savings. You get more value for your money, lower insurance premiums and fewer worries about depreciation. Taking the time to check the vehicle condition and negotiation will get you a reliable car that will last for many years.

While you make the effort to purchase the right car, let us ensure that it is protected. Fill out the form on this page and gain professional advice on four-wheeler insurance. We'll assist you in selecting smart coverage for your new vehicle.

FAQs

• Is maintenance more expensive for a used car?

A used car may face unexpected issues and the maintenance cost may increase. When buying a used car, inspect the service history and purchase from reliable sellers or dealers.

• Can I transfer insurance to my name after purchasing a used car?

Yes, you can transfer the existing policy in your name by approaching the insurance provider with relevant documents.

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.

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. 

Things to know before getting a CNG Kit

Spiralling petrol and diesel costs are enough to convince car owners to get a CNG kit. When petrol costs ₹72 per litre, diesel costs ₹ 60 per litre and CNG costs only ₹43 per kilogram*, it is obvious you will consider getting a CNG kit for your car.

A CNG kit can bring a stark improvement in your car's mileage. It can reduce the average cost per kilometre by ₹3 to ₹5 depending on your car's model. It is not only economical but also eco-friendly. But befor. CNG kits are a smart choice to save on fuel cost and reduce pollution and similarly a car insurance policy is recommended to cover the increase in the maintenance cost of the vehicle. you plan to buy it for your car, here are a few things you should know:

Compatibility and Licensing

Before getting a CNG kit you must check your car's compatibility with the CNG fuel system because not all cars are compatible with it. Even if your car is compatible, you will further need approval from the government to get a CNG kit.

Getting an approval from the local authorities can be hectic and time consuming. Once approved, you will get a 'Registration Certificate' (RC) branded with “fuel change” after which you can use the CNG kit. However, if you plan to get the kit for a new car, it will take much less time than converting your old car and getting its RC stamped.