Motor insurance coverage is generally of two types — comprehensive coverage and third-party liability or liability-only coverage. Third-party liability coverage is mandatory under Motor Vehicles Insurance Act.

In this blog, we will understand in detail what is a liability only policy in motor insurance is, its features, the types of vehicles covered, the extent of coverage, and its exclusions.

What is liability only cover in motor insurance?

Let’s start by defining what a liability only policy is.

Liability Only insurance coverage is a mandatory policy in India, required by law. It provides protection for third parties involved in accidents caused by the insured.

With this policy, your vehicle’s loss or damage will not get covered. It is a cost-effective option compared to full coverage, as the premium is lower, and the coverage is limited to third-party individuals and their property.

This type of car insurance policy is also known as “Act Only Cover.” The policy can get extended to cover additional risks, like personal accidents for occupants or workers' compensation for the driver. If you buy comprehensive motor insurance, liability only cover is bundled in it.

Features of liability only cover in motor insurance

Let’s take a closer look at the features offered by this category of vehicle insurance.

• Types of Vehicles Covered

Liability Only insurance in motor insurance is not limited to specific vehicle types. It covers a range of vehicles, including private vehicles, two-wheelers, and commercial vehicles. It also applies to goods-carrying vehicles like public and private carriers, as well as passenger-carrying vehicles.

• Cover for Third Party Liability

Third-Party Liability insurance covers any legal liabilities resulting from accidents involving the insured vehicle. The insurance provider will compensate for total permanent disability, injury, death, or property damage a third party suffers. Therefore, it ensures financial protection for the insured against such liabilities.

• Personal Accident Cover

Liability Only insurance in motor insurance often includes Personal Accident Cover. For commercial and private vehicles, the coverage can go up to INR 2,00,000, while for two-wheelers, it is up to INR 1 lakh. This coverage provides financial assistance in case of accidents, personal total disability, or the death of the driver/owner.

• Extent of Cover

Liability Only insurance provides comprehensive coverage for third parties. Companies typically offer coverage up to INR 7.50 lakh for third-party property damage and injury.

Policyholders can also choose to limit the cover for damage to third-party property to INR 6,000, reducing the premium for the Liability Only policy. This flexibility allows policyholders to adjust their coverage based on their needs and budget.

Coverage under liability only cover

Liability Only insurance in a car insurance policy provides coverage for various scenarios involving accidents with the insured vehicle, such as:

• Protection against damage to third-party property.
• Coverage in the case of death of a third party or bodily injury to a third party.
• Financial support for the insured vehicle owner/driver in case of Permanent Total Disability.
• Compensation for the insured vehicle owner/driver’s Accidental Death.
• Personal Accident Cover for the Owner/Driver, including Permanent Total Disability and Accidental Death.

General exclusions of a liability only cover

Liability Only insurance comes with general exclusions, which include:

• Damages to the insured vehicle and personal injury expenses of the policyholder resulting from the accident are not covered.
• The death of an employee of the insured or any individual liable for reimbursement under the policy gets excluded.
• Bodily injuries to individuals arising from their employment with the insured are not covered.
• Liabilities directly/indirectly related to the use of nuclear weapons or materials get excluded from the policy.

Why is liability only cover important?

Liability Only Cover is essential because:

• Legal Compliance: It is mandatory under Indian law to have at least third-party insurance.
• Financial Protection: Offers coverage against significant financial liabilities arising from third-party claims.
• Peace of Mind: Ensures that you are protected against unforeseen legal and financial consequences of accidents involving third parties.

Conclusion

This blog intended to answer the question: "What is a liability only policy in motor insurance?" Liability Only Insurance Cover, or third-party car insurance provides coverage for third-party liabilities, excluding damages to the insured vehicle and personal injury expenses. By focusing on third-party liabilities, a liability only policy offers an essential layer of protection while ensuring affordability and compliance with legal requirements.

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. 

Updated on 28 Nov 2025

Did you know that while third-party car insurance is mandatory, it does not offer any protection for your vehicle? That means if your car gets stolen or damaged by fire, you are on your own- unless you have opted for a smarter upgrade: third-party fire and theft insurance.

This in-between policy offers more protection than standard third-party insurance without going full-fledged into a comprehensive car insurance plan. For budget-conscious car owners or those with older vehicles, this could be the ideal solution.

In this blog, we explore the essentials of third-party fire and theft insurance- what it covers, how it compares to other policies and when it is the right choice for you.

What is third-party theft and fire insurance policy?

A third-party fire and theft insurance policy safeguards you against potential damages caused to others and shields your vehicle in the unfortunate events of fire or theft.

Hence, it provides greater coverage than third-party insurance. It is also a more comprehensive choice as compared to just third-party car insurance.

How is third-party, fire and theft insurance different from third-party insurance?

Third-party insurance and third-party fire and theft insurance both cover damage caused to other people, vehicles or property. However, only the fire and theft variant includes protection against your vehicle being stolen or damaged due to fire. Neither option covers accidental damage to your own car. For that, a comprehensive car insurance policy is required.

While third-party fire and theft insurance comes at a higher premium than basic third-party cover, it offers added security by covering theft and fire-related losses.

How is third-party, fire and theft insurance different from comprehensive insurance?

Both are types of car insurance, but they offer different levels of protection. Here's a simple breakdown to help you understand the difference:

Things to consider before purchasing third-party theft & fire policy

Before choosing between the two, consider factors like your car’s age and value as fire and theft insurance may be more cost-effective for older vehicles. If you live in an area prone to theft or fire, this policy offers valuable protection.

However, it doesn’t cover accident-related damage, so if your car is at higher risk of collisions, a comprehensive policy might be more suitable. Always weigh the premium against the potential benefits, based on your car’s value and exposure to risks.

Inclusions of third-party theft & fire insurance

When you opt for a third-party fire and theft insurance policy for car insurance, you’re not just protecting yourself from the potential harm your vehicle may cause to others, but also you protect your vehicle in case of theft or fire. The “third-party” aspect refers to the coverage provided for any damage or injuries caused to someone else or their property due to an accident involving your vehicle. This can include medical expenses, repair costs or legal fees that could arise from such incidents.

In addition to the third-party coverage, this policy also includes protection against specific risks, namely fire incidents and theft.

Exclusions of third-party theft and fire insurance

When considering third-party fire and theft insurance for car insurance, it is crucial to be aware of the exclusions that could result in your claim being denied by the insurance company.

Firstly, if your insured car suffers damage due to a fire caused by an electrical or mechanical breakdown, it may not get covered under the policy. Damages resulting from road accidents to the insured car, such as collisions with other vehicles or objects, are excluded from coverage. Another exclusion is if the driver involved in the accident does not possess a valid driving license at the time of the incident.

Conclusion

Third-party fire and theft insurance is a practical step up from basic third-party coverage, especially if you are looking for protection against the most common risks without paying the premium for a comprehensive car insurance plan.

It is an excellent middle ground for those who don’t want to be caught off guard by a stolen vehicle or a sudden fire. However, this type of policy doesn’t cover accidental damage. If you're often on the road or own a newer vehicle, a comprehensive plan may be the smarter choice.

Still unsure which type of coverage is right for you? Fill out the form on this page to get expert, personalised car insurance advice tailored to your needs.

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.

If you have a car, you take great care of it. However, accidents can still happen due to other drivers on the road. Hence, we recommend you have car insurance. In addition to regular maintenance and safe driving practices, car insurance provides financial protection in case of accidents or theft. While car insurance policies offer coverage for various scenarios, additional options, such as GAP insurance and Return to Invoice (RTI) coverage, are available to enhance your coverage. Here, we will explore what GAP insurance is and the advantages it offers.

Meaning of GAP insurance

GAP insurance, short for Guaranteed Asset Protection, is optional coverage for car insurance policies. It is not currently available in India, but gets commonly offered in other countries. GAP insurance works best when purchased alongside collision insurance or comprehensive insurance policies. This coverage comes into play if your car is stolen or deemed a total loss due to an accident.

When a car is purchased, its value starts depreciating immediately. In the first year alone, the value of a car can depreciate by up to 20%. If your vehicle gets stolen or declared a total loss, the insurance company will typically compensate you based on the car’s depreciated value. However, if you have a loan or lease on the car, there may be a gap between the amount owed and the insurance payout.

Return to invoice

Although GAP insurance is not available in India, a similar concept called Return to Invoice (RTI) cover can be added to your existing comprehensive car insurance policy. RTI cover proves to be extremely useful in various scenarios.

In the unfortunate event of your car being stolen or damaged beyond repair, the RTI cover comes to your rescue. When you file a claim with RTI cover, the insurance company compensates you with the original invoice price of the car rather than the current market value which includes depreciation.

How does RTI work?

Insurance companies always refer to the Insured Declared Value (IDV) of the car for compensation in case of theft or irreparable damage. The IDV represents the maximum amount you can receive from your insurance company. In some cases, the IDV of the car might be lower than the invoice price, especially for older vehicles with higher depreciation rates. By opting for RTI cover, you can avoid any difference in compensation and receive the on-road price of the car if it gets stolen or damaged beyond repair.

RTI cover cost

Since the RTI cover is an add-on, you must pay an additional premium to include it in your existing comprehensive policy. The cost of RTI coverage largely depends on the car model and its current age. You can visit online insurance aggregator websites to get an idea of the possible premiums for RTI coverage. The premium for RTI coverage is around 10% higher than premiums for comprehensive car insurance policies.

Advantages of RTI Cover

Adding RTI cover to your policy offers several benefits:

● Better coverage

RTI cover enhances the coverage of your car insurance policy, providing improved security compared to a basic policy.

● Theft coverage

RTI cover provides comprehensive coverage in case of car theft, ensuring you receive the maximum compensation possible and giving you peace of mind.

GAP insurance for used cars

While GAP insurance is most commonly associated with new vehicles, some insurers do offer RTI for used cars, especially if the car is under a certain age and has a valid comprehensive policy.

However, most car insurance providers do not recommend GAP insurance for used vehicles that are more than 3-5 years old due to high depreciation.

Is GAP insurance worth it for used cars?

These are the things to keep in mind if you are considering GAP insurance for a used car:

● Replacement for total loss

In case of total damage, GAP insurance ensures you don’t bear a financial burden and can replace the car without extra out-of-pocket expense.

● Ideal for new cars

RTI is most cost-effective for new vehicles because it offers full invoice reimbursement when depreciation is highest during the first few years.

● Total damage protection

RTI helps in instances of total loss from natural calamities, fire, accidents, etc., where the damage is beyond repair.

● Own damage coverage

While third party car insurance is a legal mandate, it is only for the third-party liabilities, and is useless in case of own damage. RTI works as an add-on to own damage policies and provides much broader financial protection.

Conclusion

While GAP insurance is not currently available in India, the concept of Return to Invoice (RTI) cover provides similar benefits. By adding RTI cover to your comprehensive car insurance policy, you can receive compensation based on the original invoice price of your car in case of theft or irreparable damage. RTI cover offers better protection and security and helps you avoid the impact of depreciation on your compensation. It is particularly beneficial for new cars and provides peace of mind to car owners. Although it may increase your policy premiums slightly, the advantages of RTI coverage make it a valuable addition to your car insurance policy.

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

Collision insurance is a type of insurance policy that can help cover the cost of repairing your car if it is damaged in a crash. This includes accidents where you hit another car or an object like a tree, pole or fence. It also covers single-car accidents, like if your car rolls over. Unlike third-party or basic cover, collision insurance pays for any damage to your own vehicle, regardless of who caused the accident.

Let us understand what collision insurance means and what you should consider before choosing a policy.

Collision policy: Pros and cons

Like any insurance policy, collision insurance has both advantages and disadvantages.

Pros:

• It protects your car if you're involved in a crash, even if it's your fault.
• It gives peace of mind when driving, especially in busy areas or bad weather.
• It helps you get back on the road faster after an accident, as the insurance pays for repairs or replacement.

Cons:

• It adds to your monthly or yearly insurance cost.
• It only covers collision damage, not damage from theft, weather or animals.
• If your car is old or not worth much, the payout might be less than the cost of the policy.

Comprehensive insurance vs collision insurance

Before choosing a plan, it's helpful to understand the key differences between comprehensive car insurance and collision insurance.

Comprehensive insurance helps cover damage to your car from events other than a crash. This includes theft, fire, floods, falling objects or hitting an animal. It’s called “comprehensive” because it provides wider protection for your car.

Deductibles in comprehensive & collision insurance

The deductible is a significant factor in collision insurance claims. It refers to the amount subtracted from an insurance claim. For instance, if you have INR 35,000 deductible and your car repair expenses after an accident amount to INR 2,00,000, you will receive an insurance cheque for INR 1,65,000 (INR 2,00,000 – INR 35,000 = INR 1,65,000).

When purchasing this insurance, policyholders can choose their deductible amount. Opting for a higher deductible generally results in lower car insurance rates as the insurer’s payout decreases if a claim gets filed.

Frequently Asked Questions

• Is collision insurance required by law?

No, collision insurance is not needed by law. But, it may be required by a lender if you have a car loan or lease.

• Can I get collision insurance without comprehensive cover?

Yes, but most insurers recommend combining both for full protection.

• Will collision insurance cover me if someone else hits my car?

Yes, but if the other driver is at fault and insured, their insurance should pay. Collision insurance helps if they are uninsured or if you are at fault.

Conclusion

Collision insurance is a valuable part of a strong car insurance plan, especially if your vehicle is new or has high repair costs. It covers damage from accidents and helps you avoid large repair bills. When choosing a policy, consider combining collision insurance with comprehensive car insurance for full peace of mind.

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

Updated on 2 Jan 2026

When you plan to buy a car, one of the first things you have to consider is the mileage. It tells you how far the vehicle can travel in one litre of fuel. Knowing how to calculate your car’s mileage is very important for saving money, planning long trips and keeping your vehicle in good condition.

In this guide, we will explain the steps to calculate the mileage of a car.

What is car mileage?

Mileage is the distance your car can travel with one litre of fuel. It is usually represented in kilometres per litre (km/l). For example, if your car travels 15 kilometres with 1 litre of petrol, then its mileage is 15 km/l.

Mileage is one of the most important factors for car owners in India, where fuel costs are high. A higher mileage means you spend less on fuel, while lower mileage means higher expenses.

How to calculate your car's mileage?

Here is how to calculate the mileage of a car:

Fill up the fuel tank

First, ensure that you fill your car’s fuel tank entirely, taking note of the quantity added in litres. This step is crucial for obtaining the most precise fuel consumption and mileage measurement.

Check the reading of the odometer

Note the current odometer reading before you start driving. Then, drive your car normally for a few days or at least until the fuel level drops noticeably. Record the new odometer reading when you next refuel. Subtract the initial reading from the new one to find the total distance travelled.

Refuel and note the amount of fuel

When you refill your tank, note how many litres were added to reach full again. This amount represents the fuel used for the distance you travelled.

Do the math

Calculate the car mileage using the formula:

Mileage = (Second reading on odometer - First reading on odometer) /Number of litres of fuel filled

 or

Mileage (km/litre) = Distance travelled (km) ÷ Fuel used (litres)

Let us say you go on a road trip with your four-wheeler. Before starting, the odometer reads 20,000 kilometres, and you fill the fuel tank with 40 litres of fuel. After completing your journey, you check the second reading on the odometer, which now displays 21,000 kilometres.

The mileage of your four-wheeler = (21,000 km - 20,000 km) /40 L

= 25 kilometres per litre.

Tips for accurate mileage calculation

To get an accurate reading of your vehicle mileage, take care of the following things-

• Use the same pump every time
• Make a note of the odometer reading immediately after refuelling
• To get the best average, use this calculation over several refuels
• For an accurate reading, drive under normal conditions instead of high traffic or uneven roads.

Why is it important to calculate your car's mileage?

Calculating your car’s mileage is necessary because it helps you understand how fuel-efficient your vehicle is. It also assists in budgeting the fuel usage for the car. Decreased mileage can indicate mechanical issues, and identifying this helps you maintain your vehicle before serious damage happens.

Good mileage ensures that your car has a good resale value if you choose to sell it.

Factors affecting car mileage

The mileage of your car is impacted by certain factors, like:

• Your driving habits: Smooth driving ensures better mileage for a longer time, and rash driving decreases the efficiency of the engine and car.
• Engine health: It depends upon timely maintenance and oil changes.
• Tyre pressure: Rightly inflated tyres ensure the well-functioning of the vehicle and offer a smooth driving experience
• The weight of the vehicle: The heaviness of the vehicle can make it harder for the engine to work. Adding excess weight to the car also reduces its mileage.
• The quality of the fuel: The purity of the fuel used in the vehicle affects the mileage and overall health of the car.
• Traffic condition: Congestion and frequent stops reduce fuel efficiency and harm

Tips for improving car mileage

You can follow a few expert tips to maintain the car mileage and improve its performance-

• Driving efficiently without sudden breaks or acceleration and maintaining a steady speed.
• Regular visits to the repair shop, timely oil changes and cleaning of the vehicle and its components are effective steps to maintain the car’s performance.
• Check the tyre pressure regularly.
• Avoid adding extra weight to the car as it reduces efficiency and mileage.
• Do not constantly use the AC at the maximum setting for prolonged periods because this can reduce mileage.

Role of car maintenance in maintaining good mileage

Car maintenance plays a big role in keeping mileage consistent. Even a well-built car can give poor mileage if not maintained properly.

• Engine oil: Old or dirty oil reduces efficiency. Regular oil changes keep the engine smooth.
• Air filter: A clogged filter restricts airflow, reducing mileage. Cleaning or replacing it improves performance.
• Spark plugs: Worn-out plugs cause incomplete fuel burning. Replacing them helps with mileage.
• Wheel alignment and balancing: Misaligned wheels cause more rolling resistance, lowering mileage.
• Regular servicing: Following the service schedule recommended for your car ensures better performance and mileage.

How mileage impacts car insurance premiums and claims

Mileage also affects your car insurance policy in the following ways:

• Low usage, low premium: If your yearly mileage is low, your insurance premium may be slightly lower because the risk of accidents is less.
• High usage, higher risk: If you drive a lot, the chances of wear and tear or accidents increase, which may impact your insurance cost.
• Claim settlement: When making claims, sometimes insurance companies may check your odometer reading to confirm the vehicle usage.

Conclusion

Calculating car mileage is simple. By knowing how much distance your car travels per litre of fuel, you can manage your budget, keep your car in good health and even plan long trips better. Mileage depends on many factors like driving habits, road conditions and maintenance. By driving smartly and keeping your car in good condition, you can improve mileage and save more in the long run.

While you take care of your car’s mileage and maintenance, don’t overlook the importance of the right insurance cover. Get expert advice on choosing the best comprehensive or third party car insurance policy for your needs by filling out the form provided on this page.

FAQs

• What is a good mileage for a car?

A mileage of around 15-20 km/l for petrol cars and 18-25 km/l for diesel cars is considered good.

• Does running the AC reduce mileage?

Yes, using the AC puts extra load on the engine and reduces mileage slightly.

• How often should I check mileage?

You don’t need to check mileage very often; once in 3-6 months or after servicing is enough.

• Can I increase my car’s mileage?

Yes. By driving smoothly, maintaining tyre pressure, servicing regularly and reducing unnecessary load, you can improve your car’s mileage.

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.

If you’re wondering about the difference between own damage and third-party car insurance, you’re at the right place. We’ll break down these insurance types in simpler terms so that you can easily understand them.

Whether you’re renewing your policy or exploring different coverage options for car insurance, you should take expert advice. Hence, without wasting time, let’s dive in and demystify the world of our own damage and third-party car insurance together.

What is Third-party Car Insurance?

Third-party vehicle insurance compensates for the death or injuries caused to other persons and damages to their properties due to an accident involving your insured automobile. This won’t pay for the damages sustained by your vehicle.

Third-party insurance is the minimum insurance mandated by law for all automobiles.

What is Own Damage (OD) Insurance?

Own Damage or OD insurance is optional for a vehicle. It covers automobile theft and damage from accidents or natural or man-made calamities. This will provide protection to your vehicle.

Difference Between Own Damage (OD) and Third Party (TP) Insurance

Let’s understand the difference between own damage and third-party Insurance using the following table:

When is More Advisable to Go For Third-party Insurance?

Third-party insurance is advisable when-

1. You want a cost-sensitive way to meet legal requirements
2. If the vehicle is rarely used
3. If the vehicle is used in low-traffic areas where the risk of damage is minimal.

When and Who Can Opt for Own Damage Insurance?

Own damage insurance can be chosen by:

1. New car owners as it protects the brand new vehicle
2. People who are frequently using their vehicle
3. Vehicle owners who take their cars to high-risk areas
4. Owners of customised or luxury vehicles

Conclusion

Now that you know the details and differences between third-party and own-damage insurance, you can choose the best four-wheeler insurance based on your needs. Being a car owner, it’s best to secure yourself and others with comprehensive car insurance to avoid huge financial liabilities draining your savings.

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. 

Obtaining a no claim bonus (NCB) certificate is a quick process that can help you save money on insurance rates. The NCB certificate confirms that you have not made any insurance claims during the policy term. Contact your insurer and request an NCB certificate. They will analyse your claim history and issue the certificate if needed.

When renewing or purchasing a new insurance policy, give the NCB certificate to your new insurance provider to enjoy premium discounts. This certificate is a useful document for demonstrating your responsible and safe driving practices, congratulating you on keeping a clean claims record and encouraging you to continue.

Steps to get no claim bonus certification

If you’re wondering how to get a no-claim bonus certificate, follow the steps listed below.

• Please contact your insurance provider:

Contact your existing insurance company to inquire about receiving a no claim bonus (NCB) certificate.

• Please provide the following information:

Provide the insurer with the requested information, such as your policy number, personal information, and vehicle information.

• Claim evaluation:

Your insurer will evaluate your claim history for the specific policy term to determine your eligibility for the NCB certificate.

• Put in a formal request:

Once your insurer validates your claim-free history, you can formally seek the NCB certificate from your car insurance company.

• Document submission:

Please provide any additional documents or information necessary by the insurer to process your NCB certificate.

• Get the certificate:

When you meet all the requirements, the insurance company will issue the NCB certificate, including the necessary percentage of NCB.

• Keep the certificate secure:

Keep the NCB certificate in a safe place because it acts as a documentation of your claim-free status.

• Share with the new insurer:

When renewing your policy or transferring to a new insurance provider, show them the NCB certificate to receive the corresponding rate discounts.

• Take advantage of lower premiums:

With the NCB certificate, you can enjoy cheaper insurance costs as a reward for having a clean claims record and practising safe driving habits.

When you start thinking about how to get NCB Certificate, please keep in mind that the particular stages and requirements will vary based on the insurance company and policy terms. For specific information, contact your insurance provider directly.

Updated on 2 Jan 2026

When you buy a car, one of the most important things you need to think about is car insurance. It is a legal requirement and also a way to protect yourself from big financial losses in case of accidents or vehicle theft. However, when you start looking at car insurance plans, you may come across many terms that can confuse you. Two of the most common terms are comprehensive insurance and zero depreciation car insurance. If you are planning to buy a car or renew your policy, it is important to know the difference between them. This blog will help you understand what each one means, how they work and which one may be better for you.

What is comprehensive insurance?

Comprehensive car insurance provides extensive coverage, protecting your vehicle from theft and damages caused by accidents, natural disasters, vandalism and other unforeseen events. It also covers third-party liabilities, including injuries to other road users and damages to their properties. Additionally, comprehensive policies often include personal accident coverage for the owner-driver. It also offers options to enhance the coverage with add-ons like engine protection, roadside assistance and more.

What is zero depreciation insurance?

Zero depreciation insurance, also known as 'bumper-to-bumper' insurance, is an add-on cover available with the comprehensive policy. It ensures that, in the event of a claim, the insurer pays the full cost of replacing or repairing damaged parts without considering depreciation. This means you receive the full claim amount, as the depreciation cost of parts is not deducted.

A zero depreciation rider is typically available for vehicles up to five years old. Due to the enhanced coverage, premiums are generally higher than standard comprehensive policies.

Comprehensive insurance vs zero depreciation insurance: Key differences

Comprehensive car insurance covers damages from accidents, theft, fire and natural disasters, along with third-party liability, but accounts for depreciation, reducing claim payouts for older parts. Whereas the zero depreciation add-on ensures full claim amounts without considering depreciation, making it ideal for new or expensive cars. While this rider offers better financial protection, it comes with higher premiums. The choice of opting for just comprehensive insurance and adding riders depends on a car’s age, value and the owner’s preference for cost versus coverage.

Which one is better - Comprehensive or zero depreciation insurance?

The answer depends on your situation. If you want only basic wide coverage at a lower premium, comprehensive insurance is enough.  However, if you do not want to worry about paying from your pocket during claims, adding a zero depreciation add-on to the comprehensive policy is better. This is because standard comprehensive policies account for depreciation when paying the compensation. The premium with the zero depreciation rider will be higher, but the benefits are more.

For example, if you bought a brand-new car, you may want zero depreciation cover. In the first 5 years, the car’s parts depreciate very fast. If you only have a normal comprehensive plan, you may end up paying a big amount yourself whenever there is damage. Zero depreciation cover saves you from that.

Factors to consider before choosing between comprehensive & zero dep insurance

If you are buying car insurance online, the choice between comprehensive and zero depreciation insurance depends on various factors:

Vehicle age: If your car is new (less than five years old), zero depreciation cover is beneficial as it offers full claim settlement without accounting for depreciation. For older vehicles, comprehensive insurance may suffice.

Financial considerations: Zero depreciation policies come with higher premiums. Assess your budget and determine if the additional cost aligns with the benefits offered.

Risk factors: Consider your driving environment. If you frequently drive in high-risk areas or under challenging conditions, the enhanced coverage of zero depreciation insurance can be advantageous.

Personal preference: If you prefer minimal out-of-pocket expenses during claims, zero depreciation cover ensures you don't bear the depreciation cost of parts.

For new car owners seeking maximum coverage and willing to pay a higher premium, zero depreciation insurance is ideal. For those with older vehicles or looking for a more cost-effective option, comprehensive insurance remains a solid choice.

Conclusion

Car insurance is not just about meeting a legal requirement. It is about protecting yourself from unexpected financial shocks. A comprehensive car insurance plan or policy gives you wide coverage at a lower price but cuts depreciation during claims. Including a zero depreciation add-on with it costs more but ensures you get maximum claim benefit without worrying about depreciation.

To get clear, personalised guidance for choosing the best car insurance and required add-ons, simply fill out the form on this page. Our experts will help you with the selection.

FAQs

• Can I buy zero depreciation insurance without comprehensive insurance?

No, zero depreciation is an add-on. You can only get it with a comprehensive plan.

• Is the premium for zero depreciation very high?

The premium is usually higher than a normal comprehensive plan when you choose an add-on. It usually depends on the car’s model and age.

• Does zero depreciation cover everything?

No, it does not cover engine damage due to oil leakage, tyre wear and tear or regular maintenance costs. It mainly removes depreciation from claims.

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.

Vehicle insurance is an essential step to protect your car from any unforeseen damages and loss. While a standard comprehensive insurance plan offers good coverage, add-on covers make the policy even more well-rounded and suited to your needs. When choosing a rider, two popular options that you may come across are Zero Depreciation and Return to Invoice (RTI). This article will explore the differences between the two add-ons.

What is a Zero Depreciation Add-On Cover?

Zero depreciation or NIL depreciation add-on cover eliminates the depreciation factor during claim settlement. Car parts are naturally prone to wear and tear, which reduces the claim amount payable over time. This means that in the event of an accident, the insurance provider will pay for the damage repair after deducting the depreciation cost for the vehicle parts. With zero depreciation cover, the policyholder can claim the full amount without any deductions, making it a beneficial add-on to four-wheeler insurance.

What is a Return to Invoice Add-On Cover?

Return to Invoice rider ensures that in case of total loss or theft of a car, the policyholder receives a claim amount equal to the original invoice value of the vehicle. Without this add-on, the insurance provider only pays the Insured Declared Value (IDV) of the vehicle, which will not be enough to cover the substantial loss of the four-wheeler. With a Return to Invoice add-on, the policyholder can claim the purchase value of the car. This will provide the much-needed financial cushioning in cases of vehicle theft, or the loss is irreversible.

Return to Invoice vs Zero Depreciation Cover: Differences

When is it Advisable to Choose The Zero Depreciation Add-On?

Zero depreciation is suitable for cars that are not older than 5 years. Some insurance providers offer this add-on for older vehicles as well. The number of claims can be limited by this cover, depending upon the insurer. The premium for four-wheeler insurance with zero depreciation add-on is higher.

  It is particularly beneficial for the following cases-

1. Recently Purchased Cars: It protects the car's value by covering full repair without any depreciation cost.
2. Frequent Commuters: Ideal for people who drive daily and have a higher chance of minor mishaps.
3. Urban Drivers: Driving in the city includes chances of minor accidents, making this a valuable add-on.
4. Luxury Vehicle Owners: Provides coverage for higher repair costs of premium parts.

When and Who Can Opt for the Return to Invoice Add-On?

Return to Invoice add-on is available for cars that are 1 to 3 years old, after which it is not provided. It is offered for vehicles that are repairable and can be used for more than 75% of its Insured Declared Value. The basic car insurance plan premium increases by 10% upon purchasing this add-on.

It is suitable for the following cases:

1. Expensive Cars: High-end or luxury car owners can benefit from a full invoice value claim.
2. Cars in High-Risk Areas: Regions that are prone to cases of theft or recurring natural calamities.
3. New Car Owners: Especially valuable for the first few years when the speed of depreciation is quick.

The first stage to becoming obsessed with cars or owning one is understanding the fundamentals. When buying a car, the first element you may want to consider is the type of vehicle that will best meet your requirements. Knowing the different car types available in the Indian automobile market will increase your chances of finding your ideal car.

The current car market in India offers a wide range of choices. We have anything you can think of, including hatchbacks, sedans, MUVs, SUVs, convertibles, coupes, and pickup trucks. But with so many sizes, shapes, and designs, it can take time to choose the ideal vehicle.

In order to facilitate your journey, we have comprehensively explained the different car body styles in India and made a list of the most popular cars in each category.

Types of Cars in India

One of the difficult choices you might have to make during the buying process is what kind of car to buy.

• If you live in a rural region without traffic congestion, you can choose a big car with enough room for your needs.
• Those living in cities must be concerned about traffic, mainly if they rely on a vehicle for both their daily commute and weekend excursions.

Most significantly, one should also consider the car user’s family. Although there are countless ways to categorise vehicles based on their bodies, we have limited the list to a few famous types of car bodies in India. You can choose the best car for your requirements with the help of this succinct description of car body styles.

Hatchback

• The most ubiquitous form of vehicle in India is a hatchback. A small car with four doors and a boot is called a hatchback. It's best to seat only four persons at a time for greater comfort.
• Fuel economy is one of the many benefits of a hatchback, and it scores high on this count. Hatchbacks give superior mileage than other vehicles because they are compact and lightweight.
• The most congested city streets, where car dimensions are a significant consideration for all vehicles, are best suited for hatchbacks.
• Parking in most places can be a nightmare, and hatchbacks are the best car models for parking convenience.
• A hatchback’s tiny boot room is one of its drawbacks, making these vehicles unsuitable for transporting large amounts of luggage.
• The Tata Indica, Maruti Alto, Hyundai i10, Maruti Swift, Ford Figo, etc., are some of India’s top hatchbacks.

Sedan

• Another segment that is very popular in the Indian industry is sedans. These vehicles are perfect for families because they provide enough room for all needs.
• A sedan has four passenger doors and one for the boot, similar to a hatchback. The boot space in sedans is significantly more extensive and accommodates luggage of various sizes.
• Manufacturers occasionally add boot space to existing hatchback cars to turn them into sedans. One of the best instances of this conversion is the Maruti Swift Dzire.
• In general, sedans are considered more elegant than hatchback automobiles. There are countless high-end cars on the market today that are both fashionable and cosy.
• Many subvariants are within the sedan category, and automakers are constantly introducing new body styles.
• Ford Fiesta, Mahindra Verito, Hyundai Verna, Honda Amaze, etc., are a few of the best sedans on the Indian market.

Compact Sedan

• The car market in India is complicated, and customers’ needs can occasionally vary from those in other nations. People buying compact sedans receive tax rebates from the Indian government.
• These vehicles are less than four meters long.
• Indian automakers created car body styles that are unique to India to reap the benefits of the pricing element. One such exclusive vehicle is the compact sedan.
• Although these vehicles have four doors and a boot, they have much less room than a typical sedan. Tata Motors is the first company to reduce the length of the Indigo to create India’s first compact sedan, the Indigo CS (short for Compact Sedan).
• Some of India’s top compact sedans are Honda Amaze, Suzuki Dzire, Hyundai Xcent, and Tata Tigor. 

Coupe

• A two-door vehicle with a slanted roofline and a sporty posture is called a coupe. The majority of these coupes have a strong motor and either have two seats or two additional smaller rear seats.
• Four-door coupes are available nowadays, but their sporty traits have stayed the same.
• Most Indian drivers do not favour this type of vehicle, but international car manufacturers are marketing them to a select group of motorists in India.
• Coupe cars can reach triple-figure speeds in a few seconds because they are typically high-performance.
• Some of India’s top coupes are Ford Mustang, Audi R8, and Mercedes Benz GLE Coupe.

In India, driving under the influence of liquor or drugs is considered a criminal offence and is punishable by law. If drugs get detected in the driver’s blood sample test, it will be a punishable offence, and the person will have to pay a drunk driving penalty. In this article, we will discuss the fines and penalties for drunk driving in India and the process for paying these fines. The article also emphasises the importance of avoiding driving under the influence of alcohol or drugs. The legal drinking age in India varies from state to state, but the drinking and driving rules are the same across the country. It is essential to drive safely and responsibly to ensure a safe and smooth ride for everyone on the roads.

What is the fine for drunk driving in India?

According to Section 185 of the Motor Vehicles Act, if a driver has more than 30 mg of alcohol in a sample of 100 ml of blood, it is considered a punishable offence. A drunk and drive fine will be applied accordingly. The fine for a first offence can be up to Rs 10,000; repeat offenders may face imprisonment for up to two years and a fine of up to Rs 15,000. These penalties are the same for all vehicles.

It is important to avoid driving under the influence of alcohol or drugs, as it can lead to serious consequences, including injury or death. To prevent drunk driving, individuals can plan by not drinking if they know they will be driving, booking a cab or auto-rickshaw, staying overnight with a friend or relative, picking a designated driver, and leaving their car at home.

It is also essential to be aware of the legal drinking age in different states in India and to drink responsibly to avoid the drink-and-drive penalty.

The legal drinking age in India varies from 18 to 25 years, depending on the state. Some states have banned alcohol entirely, while others have a legal drinking age of 25 years. Most states have a legal drinking age of 21 years. However, the drinking and driving rules, including the drunk driving penalty, are the same for all states, and it is illegal to drive under the influence of liquor or drugs.

Process to pay the fines

You can pay either online and offline while paying a drunk driving fine depending on the state and the mode of issuance of the challan:

• If you get caught driving under the impact of drugs or alcohol, the designated officer will issue a challan for the drunk-driving fine. This is applicable only if the test shows a value equal to or more than 30 mg/100 ml of blood.
• It is advised not to refuse the test as it may result in further legal complications and arrest. You can pay the fine online or offline as per the challan.
• For online payment to pay a drunk driving fine, you can do the following:
• You need to visit the official website of the State’s Department of Transport
• Click on the payment tab for e-challan or traffic violation
• enter the vehicle number or challan number
• fill in the captcha code
• You can make the payment using your debit or credit card or an e-wallet. After successful processing, you will receive a receipt confirmation message.
• If you cannot pay online, you can visit the traffic police station in your zone and enquire about the amount of fine for drinking and driving.
• You can then make the payment offline using cash or your debit/credit card and take a receipt for the same.

Impact on motor insurance in case of drink and drive fine

Getting fined for drunk driving does not just end with paying a penalty—it can also have a significant impact on your car insurance policy.

1. Rejection of claims:

If you are involved in an accident while driving under the influence of alcohol, your insurer has the right to reject any claims. Most car insurance policies have strict rules against drunk driving, and if proven, this results in the rejection of the claim.

2. Premium hikes and policy cancellation:

A history of drunk driving can result in increased premiums when you renew your policy. In some cases, insurers might refuse to renew your car insurance policy altogether, considering you a high-risk driver.

3. Legal and financial liabilities:

If a third party is injured or property is damaged while you are driving drunk, you may be held personally liable for all costs—even if you have third party car insurance. This affects the primary benefit of insurance protection and can result in financial strain.

Conclusion

It is important to drive safely by obeying traffic rules, avoiding drinking and driving, and using a cab if necessary. We are responsible not only for our safety but also for the safety of others on the roads when we are driving. Therefore, it is crucial to be vigilant and follow traffic regulations. Also, ensure that you have a third-party car insurance since it is mandatory in India as per the Motor Vehicles Act.

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 term “Green Tax,” which also refers to environmental or pollution taxes, is an excise duty imposed on products that pollute the ecosystem. The economic theory claims that by incentivising households and businesses to adopt pollution-reduction practices, levies on emissions that create pollution will lessen the harm done to the ecosystem. Pollution is the expense of producing goods that the producer or polluter does not bear. Polluters who endanger the lives of other people and the environment are subject to vehicle green tax.

Indirect taxes on alternative policies or associated products like accepted technology standards can cut pollution, but they might be costly. For instance, increasing the price of gas does not encourage drivers to maintain their cars' pollution-control systems. Since such taxes encourage polluters to reduce pollution, carbon taxes are economically advantageous.

What is Green Tax?

Due to the emissions from their outdated engines, which pollute the environment, older vehicles in the country are subject to a Green Tax. As a result, the Green Tax is a fixed fee that owners of vehicles must pay on their outdated cars.

• This tax applies to both household and commercial vehicles. The amount of the Green Tax varies by state and depends on the type of car as well.
• Older cars negatively impact the environment by releasing gases or smoke. This also significantly increases pollution. Large trucks transporting goods from one place to another also add to air pollution. Since the Indian government has placed a Green Tax on older vehicles, it is imperative to limit their use.
• A higher Green Tax is applicable to vehicles registered in heavily polluted regions like Delhi.
• The Green Tax, implemented to lessen pollution, only applies to gasoline and diesel vehicles. It does not apply to vehicles that run on electricity, compressed natural gas, or ethanol.
• The government uses the funds raised from the Green Tax to construct facilities for measuring emissions. The Green Tax should encourage the country’s people to switch to cleaner vehicles.

Why and When is Green Tax Levied on Vehicles?

Given the quickly deteriorating state of our environment, the government has decided to take action to reduce pollution levels. The Green Tax, which levies a fee on vehicles that don’t meet specific requirements, is one such measure. The Indian government is contemplating imposing a green tax on vehicles at the time of renewal of their registration documents. The owner will therefore be liable for any environmental harm. Over-eight-year-old commercial and more than 15-year-old privately owned vehicles will be subject to vehicle green tax.

There is a Green Tax imposed on those who drive polluting vehicles. Old cars with older motors are more likely to generate heavy pollution. The Green Tax acts as a behavioural restraint on people who continue to ignore global warming and drive polluting vehicles.

The tax is a tool for encouraging people to upgrade to more ecologically friendly technology or, at the very least, vehicles with a more negligible impact. Numerous companies are currently developing two- and four-wheel vehicles with reduced pollution levels. Sales of electric scooters are rising as more people realise how important it is to transition to better forms of transportation. The Green Tax initiative seeks to promote and facilitate scooter users’ transition to greener models.

We have all witnessed the increasing global concern about the impact of fossil fuel consumption on the environment. As a result, many of us have begun to question the efficiency and environmental sustainability of petrol cars. It's encouraging to see the automotive industry has been responding to these concerns by introducing alternative solutions such as hybrid and electric cars.

Electric cars, powered solely by batteries, emit zero emissions and are incredibly efficient. On the other hand, hybrid vehicles combine petrol and electric power sources, resulting in lower emissions and better fuel efficiency. As a result, the debate on hybrid cars vs petrol cars, electric car vs hybrid car, electric car vs petrol car, and hybrid vs electric car has become increasingly prevalent among car users.

Ultimately, the choice of electric, petrol, or hybrid car depends on each individual’s needs and preferences. We must take into account our budget, daily commute, environmental concerns, and overall driving preferences. This blog will help you explore each type of vehicle, analyse its pros and cons, and ultimately help you make an informed decision that meets your transportation needs while reducing your carbon footprint.

What is an electric car?

Electric cars are becoming increasingly popular due to their eco-friendly nature and low operating costs. An electric car is a vehicle that runs on an electric motor powered by a rechargeable battery pack. It doesn't have an internal combustion engine, which means there are no emissions produced from burning fuel.

Features of an electric car

Electric cars come in various types, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and extended-range electric vehicles (EREVs).

BEVs are purely electric and run entirely on battery power, while PHEVs have both an electric motor and a petrol engine that work together. EREVs are similar to PHEVs, but their petrol engine only generates electricity to power the electric motor rather than directly powering the wheels.

Electric cars have several advantages-

Zero Tailpipe Emissions: EVs eliminate exhaust emissions, greatly minimising air pollution.

Lower Operating Costs: Electricity generally costs less than petrol or diesel, leading to reduced fuel expenses.

Quiet Operation: Electric motors provide a silent driving experience, contributing to noise pollution reduction.

Instant Torque: EVs deliver immediate power, resulting in quick acceleration.

Electric cars also have drawbacks, such as limited driving range, longer recharge times, and higher upfront costs than petrol cars. These factors can make them less practical for long journeys or those who cannot afford the high initial purchase price.

Overall, electric cars are a great choice for those who want to reduce their carbon footprint, save on fuel costs, and enjoy a quiet, smooth ride. However, they may not be suitable for everyone’s needs, and it's important to consider factors like driving range and charging infrastructure before making a purchase.

What is a petrol car?

Petrol cars, also known as gasoline cars, have an internal combustion engine that combusts petrol and air to generate power. This gets transferred to the wheels via a transmission system. Petrol cars have been in existence for over a century and are still widely popular today.

Features of a petrol car

Petrol cars offer a range of benefits-

• Affordability- Petrol cars have a lower purchase price compared to EVs and hybrids.
• Ease of Maintenance- A vast network of service centres exists for petrol vehicles
• Moderate Fuel Efficiency: Petrol engines offer reasonable fuel economy but are less efficient than diesel or hybrid counterparts.

What is a hybrid car?

A hybrid car is a vehicle that combines the power of a gasoline engine and an electric motor. This type of car increases fuel efficiency and reduces emissions.

Features of a hybrid car

Key features of hybrid cars are-

• Variety of Options - There are three types of hybrid cars — parallel, series, and plug-in hybrid.

A parallel hybrid car uses both the gasoline engine and electric motor to drive the wheels simultaneously. In contrast, a series hybrid car uses an electric motor to power the wheels, with the gasoline engine acting as a generator to charge the battery.

A plug-in hybrid car, on the other hand, can be charged from an external source, allowing it to travel longer distances on electric power alone.

• Fuel Efficiency- Hybrid cars are advantageous over petrol cars as they are more fuel-efficient, emit less pollution, and have better resale value.
• No need for External Charging- They are also advantageous over electric cars as they offer a longer driving range and have less dependence on charging infrastructure.
• Low Maintenance- Hybrid cars require less maintenance as they have fewer mechanical components, and the brake pads last longer due to regenerative braking.

Hybrid cars are more expensive than petrol cars, and their batteries may need replacement after a certain period, which can add to the cost.

Understanding the different car fuel types

Which type of car fuel is best for you?

When it comes to choosing between electric, petrol, and hybrid cars, there is no one-size-fits-all answer. It ultimately comes down to your personal needs, preferences, lifestyle, driving habits, and budget.

1. If you are looking for a car that is eco-friendly and cost-effective in the long run, an electric or hybrid car may be the best option for you. These cars offer significant savings on fuel costs and are better for the environment. However, they may not be the most convenient choice if you have a long commute or lack access to charging stations.
2. On the other hand, petrol cars offer convenience and reliability. They are widely available and can easily be refuelled at gas stations, making them a great option for those who travel long distances or live in areas with limited charging infrastructure. However, they are not as environmentally friendly as electric or hybrid cars and may cost more fuel expenses in the long run.

It is essential to evaluate the pros and cons of each type of vehicle.

FAQs

• Why is CNG considered a better option than petrol or diesel?

Compressed Natural Gas (CNG) is often preferred over petrol or diesel due to its lower emissions, making it an eco-friendly alternative. CNG is cost-effective, helping car owners save on fuel expenses in the long run. It also results in smoother engine performance and extends the engine's lifespan due to cleaner combustion.

• Does the type of fuel affect a car's power and performance?

Fuel type plays a crucial role in a vehicle's power and efficiency. Petrol and diesel engines generally provide higher power output and torque compared to CNG vehicles. CNG vehicles offer better mileage and lower running costs, making them an economical choice despite slightly reduced engine power.

• Which is safer—CNG or petrol cars?

CNG and petrol cars have safety mechanisms, but CNG vehicles require additional precautions. Factory-fitted CNG cars are designed with robust safety measures, such as reinforced cylinders and leak-proof systems. However, if a CNG kit is installed aftermarket without proper certification, it may pose safety risks.

• How do CNG and diesel fuel prices compare?

The price difference between CNG and diesel varies based on location and market conditions. CNG is more affordable than diesel, offering lower running costs per kilometre. While diesel vehicles may provide better mileage and power, CNG vehicles help reduce fuel expenses significantly over time.

• Is a factory-fitted CNG car better than a petrol car with an aftermarket CNG kit?

A company-fitted CNG car is generally better than converting a petrol car with an aftermarket CNG kit. Factory-fitted CNG vehicles come with optimised engines, better safety features, and warranty coverage. In contrast, aftermarket CNG kits may not always integrate well with the engine, leading to performance issues and higher maintenance costs.

Conclusion

Selecting between electric, petrol, and hybrid cars depends on individual preferences, environmental considerations, and driving patterns. Electric vehicles offer sustainability and lower operating costs, petrol cars provide affordability and convenience, while hybrids deliver a balance of efficiency and reduced emissions. Regardless of your choice, securing an appropriate car insurance policy—be it third-party car insurance or comprehensive coverage—is essential to protect your investment and ensure 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. 

Taking care of your car and ensuring it runs well takes work, but you don't have to be a technical genius to keep it in good shape. The hardest part of car servicing is knowing what to do and how often. By learning the basics regarding what your car demands and how frequently you should do regular maintenance, you can ensure your vehicle is running at its best.

As an added advantage, if you can show that your car has been well cared for, you'll get the most money when it's time to sell it. And, of course, it's essential to know that the costs of maintaining the car aren't always cheap, but they can save you money in the long run by keeping your vehicle in good shape.

The following is a car service checklist that requires your attention at different times of the year. You must check several of these factors often. It is important to follow your car maintenance plan and service period record.

Inspect the fluids

After servicing, one of the most crucial checks is ensuring that all fluids are at optimal levels and free from contamination.

Engine Oil

Engine oil keeps the parts inside and around the engine from rubbing against each other and wearing out too quickly. It also stops energy loss and cleans the engine to prevent rust. Check your car’s manual to determine when it’s time to change the oil in your engine.

Coolant

The coolant helps keep the engine at the right temperature and from getting too hot. It is also known as “antifreeze” because most coolants don’t freeze when the temperature drops below 0°C. Due to this, it’s vital to ensure that the radiator or tank is full. If there’s not sufficient liquid, pour more to fill the tube. It’s best to have an expert examine and drain the coolant since it’s hazardous, pollutes the environment, and can cause skin irritation. According to how frequently you drive your car, you should change the oil about every 50,000 kilometres, every 2 to 4 years, or every 2 to 5 years. Every year, you must check the coolant amount.

Brake Fluid

This fluid ensures smooth and responsive braking. Low or dirty brake fluid can reduce braking power. To check the brake fluid level, ensure the reservoir is accessible and verify that the fluid is clean and clear.

Transmission Fluid

This enables smooth gear shifting in automatic cars. Use the dipstick to check the fluid level, ensuring it is at the recommended level. Clean transmission fluid typically has a bright red colour.  A burnt smell or dark fluid may indicate replacement.

Windshield Washer Fluid

This helps in maintaining clear visibility of the windshields and is an important part of vehicle safety, especially during long drives. Ensure the reservoir is full and test the spray function. Dirty windshields can obstruct vision, especially during bad weather conditions.

Tyre condition and pressure

The roadways you frequently travel on can be harsh, patchy, and occasionally almost worn out. This makes routine wheel maintenance crucial because the portion of a car that suffers the most from bad roads is its tyres and the wheel rims. These are the primary car parts in actual proximity to the ground below.

Tread Wear

This ensures road grip and stability. Make sure to get the tread depth inspected using a gauge or coin. Balding tyres reduce traction, which increases the risk of skidding, especially in wet conditions. Change the tyres or follow a schedule to ensure your car is not running on unsafe tyres.

Pressure

Tyre pressure affects fuel efficiency and handling. During car servicing, a pressure gauge is used to check if it meets manufacturer recommendations. Inaccurate pressure can lead to uneven wear and reduced mileage, so tyre pressure is a key marker during vehicle checkups.

Rotation and Balance

Suppose your vehicle is overdue for a wheel rotation or alignment, you should expect the wheels to be changed, even though there is a remote possibility of this occurring. However, if your vehicle is brand new, you should avoid purchasing used tires. Every six months, or if your vehicle has travelled 8000–10,000 km, you must opt for routine wheel balancing performed locally. Thus, there will be less strain on sensitive auto components and less wear and tear overall. Additionally, this translates into fewer trips for car repairs and smoother, secure drives with increased savings. These are a few things to check after car service.

Brakes

Brakes are essential for safety, regulating the speed and helping the driver cruise through uneven roads easily. Any malfunction can compromise stopping power, increasing accident risks.

Pads and Rotors

These are important components of the vehicle mechanism as they provide braking force and prevent metal-on-metal contact. Worn-out pads cause squealing noises and poor braking performance, so checking for sufficient pad thickness and smooth rotors is important.

Brake Function

The smoothness of brake functioning determines the stopping efficiency of a vehicle. Spongy brakes or strange noises may indicate air in the lines or worn components. Press the brake pedal to check for firmness and responsiveness to ensure the brakes are properly serviced.

Battery health

A faulty battery can result in you being stranded in the middle of nowhere. Ensuring it’s in good condition prevents unexpected breakdowns and saves time and money.

Charge Level

Battery charge levels power the ignition system. A battery should have a charge of around 12.6V when idle. Service centres usually test this during the full vehicle checkup. However, you should request a report to confirm its health.

Connections

Unbroken wiring is important to ensure proper electrical flow in the battery. A poorly connected battery can cause starting issues or electrical malfunctions. Check for corrosion on terminals and tighten loose connections.

Lights and indicators

Vehicle lights ensure visibility and communication with other drivers. A malfunction can lead to accidents or fines.

Functionality

The proper function of vehicle lights includes headlights, brake lights, and turn signals, all in top-notch condition. Turn them all on to check if they are working properly. Replace any dim or flickering bulbs immediately.

Alignment

Poorly aligned headlights affect night driving visibility. Misalignment of vehicle indicators can either blind oncoming traffic or reduce visibility. Ensure the car headlights are properly aligned to illuminate the road evenly.

Air filters

The air filter regulates the air movement into your engine; this also helps keep debris and particulate matter out of the engine. You can get better mileage from your automobile by reducing fuel consumption. This, in turn, reduces the amount of pollutants released by your vehicle. If you ensure that the air filter is working properly, you can extend the life of your engine and make it last as many years as possible.

Engine Air Filter

When the engine filter is clean, your vehicle's acceleration will remain consistent and perform at its best. If you want your engine to last a long time and be reliable, you should check the air filter monthly. Every 15,000 miles, you should replace your vehicle's air filters. Experts strongly recommend that you only replace them at intervals of more than 50,000 miles. Most automotive specialists agree that replacing your car's air filter every fifteen thousand miles is necessary for regions with high levels of dust and pollution.

Cabin Air Filter

Changing the cabin's air filter and the engine will help your vehicle operate more efficiently. When the air filter in your vehicle is clean, the air conditioner can operate more effectively.

Documentation and service report

When you take your car to an authorised service centre for vehicle maintenance, you will receive a hard copy of the job card. When you hand the car to the service centre, you usually get the green-coloured customer copy. This is made of thin paper, while the company keeps a blue job card with a thicker piece of paper that is an exact duplicate of the customer’s green copy.

You can also write down any dents or scratches on the inventory check sheet on your car. Before you get the customer copy, the service centre agent writes down whether or not there is a stepladder, jack, toolkit, etc. The most vital part, getting the job done, comes next. It is either typed or written by hand.

Service Checklist

The Service Advisor must write down all of the customer's complaints and needs on the job card since the same card goes to the shop floor. The job card travels across various sections of the workshop and ensures that all the points noted are covered. After the servicing, you receive the complete checklist confirming whether all tasks highlighted in the job card were performed. Go through the report carefully and discuss any discrepancies with the service provider.

Warranty and Recommendations

Covers replaced parts and additional suggestions. Ensure warranty details are recorded and follow recommended maintenance tips for optimal vehicle performance.

Additional tips

After servicing the vehicle, you will receive a statement broken down into its components. Check to see if it provides the value the customer service representative anticipated it would have for you, and make it a point to ensure it does. Additionally, follow these steps-

• Always keep a vigilant eye out and ensure you are not charged extra for any service rendered, such as topping off the engine oil if it is required. It is in your best interest to maintain vigilance and check whether there has been an error.
• Verify the accuracy of every labour and replacement part cost before you make the payment. You should negotiate with the service centre agent if necessary and make use of a service voucher if you have one.
• Take your car for a short drive to check for unusual noises, vibrations, or performance issues.
• Before leaving the service centre, inspect your car’s exterior and interior for accidental damage.
• Ensure the spare tyre is in proper condition and has perfect air pressure.
• A well-maintained car can sometimes qualify for better coverage or lower premiums, whether you have comprehensive or third-party car insurance.

FAQs

1. Why is it important to check my car after servicing?

It makes sure that all maintenance tasks are completed properly, preventing performance issues and safety risks.

2. How often should I check my car’s fluids?

Check fluids every few weeks and after every service to ensure they are at proper levels.

3. What should I do if my brakes feel off after servicing?

If you notice spongy, unresponsive, or noisy brakes, get them checked immediately at the service centre.

4. Can I claim insurance if my car is damaged during servicing?

If damage occurs at the service centre, they may cover it. Otherwise, your car insurance policy may help with major damages.

5. How does regular maintenance affect car insurance?

A well-maintained car reduces breakdowns and claims, possibly leading to better insurance rates, whether you have third-party car insurance or comprehensive coverage.

Conclusion

As a customer, you must actively ensure that everything gets arranged in the way that makes the most sense. So, a part of the comprehensive Pre-Delivery Inspection checklist that you should comply with to check whether the PDI on your vehicle gets executed diligently includes the car’s invoice. This contains details connecting to the car’s model and sub-variant and the receipts, such as payments done for the car, accessories, RTO, taxes, etc. Also, a significant part of taking care of your includes having a comprehensive car insurance policy that takes care of any untimely needs.

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. 

Vehicles require a regular check-up to remain roadworthy. With time, cars, motorcycles and even lorries can experience issues that may not be easy to identify. This is where the vehicle fitness certificate (FC) steps in. It is also one of the important documents to have under the Motor Vehicles Act. Along with giving surety to drive legally in India, it also ensures your vehicle is in good condition.

Let’s take a look at what a fitness certificate means, how to get it, and why every vehicle owner should keep it updated.

What is a fitness certificate (FC) of a vehicle?

A fitness certificate is a document issued by the Regional Transport Office (RTO) that certifies that a vehicle is in good mechanical condition and conforms to pollution control regulations. For new personal vehicles such as cars and motorbikes, the FC is valid for 15 years from the registration date. After that, the owner has to renew it at periodic intervals (5 years). For new commercial vehicles, however, the fitness certificate remains valid for 2 years at first, and once the vehicle reaches the age of 8, it must be renewed annually.

Importance of having a vehicle fitness certificate

Being a vehicle owner means you've got responsibilities. Keeping your car or motorcycle in good shape is one of the biggest things, not just for you, but for everyone else on the road. Here's why a fitness certificate matters:

• It’s the law: The Motor Vehicles Act of 1989 mandates having a valid fitness certificate.
• Safety first: A fitness test ensures the important parts of your ride, like brakes, steering and lights, are working right.
• Keep pollution down: Older vehicles can pollute more. The certificate helps make sure your emissions are under control.
• Insurance essential: A valid fitness certificate is needed to renew car insurance. If you don't have one, your insurance company may not cover claims.

How to apply for a vehicle fitness certificate?

Both online and in-person FC applications are accepted. Here is how to apply:

Online Application:

• Head to the Parivahan
• Pick your state and enter your vehicle info.
• Click ‘Apply for Fitness Certificate.’
• Enter your insurance and registration details.
• Pay the fee online.
• Set up an inspection date and take your vehicle to the Regional Transport Office (RTO).
  
  

Offline Application:

• Download Form 20 for new registration and Form 38 for transport vehicles. Grab it at the RTO.
• Fill out the form and turn in the papers you need.
• Pay the required fees.
• As per the schedule, bring your vehicle in for inspection.

Documents required to apply for a vehicle fitness certificate

Keep the following documents handy while applying:

• Registration Certificate (RC)
• Valid car insurance document
• Pollution Under Control (PUC) Certificate
• Form 38 (fitness application)
• Receipt of payment of road tax
• Aadhaar card or any other proof of address
• Driver's licence (for verification of ID)
• Passport-size photograph
• Pencil mark of the chassis number
  
  

Fitness certificate for a car/4-wheeler

Private car owners obtain a fitness certificate for 15 years at the time of new vehicle registration. After this period, they must renew it once every 5 years. The car has to clear a mechanical inspection (a thorough checking of brakes, steering, lights, tyres and emissions) at the RTO.

Fitness certificate for a bike/2-wheeler

Two-wheelers adhere to the same norms as cars, with an original validity of 15 years and renewals every 5 years. At the time of inspection, the RTO inspects the status of the engine, brakes, lights, horn and exhaust system of the bike.

Fitness certificate for commercial vehicles

Commercial vehicles have more stringent regulations because of their usage. The first fitness certificate is for 2 years. After the vehicle has reached 8 years of age, it needs to be renewed annually. These vehicles receive a more thorough inspection because they cover longer distances and carry heavier loads.

RTO fitness certificate (FC) charges

Fees vary based on vehicle type and manual/automated inspection:

• Two-wheelers: ₹200 (manual), ₹400 (automated)
• Light vehicles: ₹400 (manual), ₹600 (automated)
• Heavy/medium commercial vehicles: ₹600 (manual), ₹1,000 (automated)
• Renewal charges: ₹200
• Duplicate certificate: ₹7,500
• Authority renewal: ₹15,000

How to download your fitness certificate?

After your vehicle has passed the test, you can download its fitness certificate from the Parivahan website or through the mParivahan app. Enter the registration number and download the PDF for your reference.

Steps to renew a fitness certificate online

Follow these steps to renew your vehicle’s FC:

• Log in to the Parivahan Sewa portal.
• Select your RTO and enter your vehicle's registration number.
• Select "Apply for Renewal of Fitness Certificate".
• Upload the required documents and pay the renewal charge.
• Go to the RTO for a new inspection.
  
  

How to check fitness certificate status online?

To follow your application or to know the status of your in-process certificate, visit the RTO physically or the Parivahan website. Give your vehicle registration number, and the system will display the present status of your fitness certificate.

Vehicle inspection process

During the inspection, the RTO will check components such as steering, brakes, lights, tyres and the emission system. The owner must get the vehicle repaired in case it fails the test before reapplying.

Penalties for not having a fitness certificate

If you’re caught driving without a valid fitness certificate, you will have to pay a penalty.

• First offence: Fine of ₹2,000 to ₹5,000
• Repeat offence: Fine up to ₹10,000, possibly imprisonment
• Delay in renewal: ₹50 per day
  
  

Conclusion

Obtaining and renewing your vehicle fitness certificate is not about avoiding fines; it's about being a responsible vehicle owner. A fit vehicle translates into fewer breakdowns, reduced pollution and safer roads. It doesn't matter whether you own a two-wheeler, a family car or a commercial vehicle; keeping the certificate up-to-date is necessary.

As you make your car fit and ready to roll, we will assist you in making wise car insurance choices. Receive customised advice and the most suitable policy by completing the form on this page.

FAQs

• Do I require FC for insurance renewal?

Yes. The majority of insurers need an existing FC for insurance renewal, particularly if the vehicle is old.

• From where to obtain the FC?

You need to get the fitness certificate from the RTO where your vehicle is registered.

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.

Updated on 27-03-2025

Tinted glass is a popular addition to cars in India because it protects car interiors from external environmental factors. However, there are strict rules surrounding the use of tinted glass in vehicles in India, and violating them can result in fines and penalties.

In this article, we will essentially explore in detail the rules and regulations surrounding tinted glass in India, the fines and penalties for adding them to vehicles, and how tinted glasses can affect car insurance. We will also provide you with some of the popularly known tips on how to remove the tinted film from your car.

What are the Car Window Tinting Laws in India?

The government regulates the car window tinting laws in India under the Central Motor Vehicle Rules (CMVR) of 1989. The Rule 100 (2) states that-

1. The visible light transmission or VLT for a car has to be under 70% for the front windshield and rear window. 
2. The VLT for side windows is limited to less than 50%. 

In a landmark judgment of the Supreme Court of India that came in 2012, any material that covers car windows, irrespective of its visible light transmission levels, was prohibited. 

Black Film in Car Window Penalty: What is the Fine for Tinted Glass in a Car?

One cannot use tinted glass as per Indian law, and a fine of Rs 100 is imposed for the first offence of using car glass film not approved by the RTO.

• Repeat offences lead to harsher consequences, and in 2019, 1.32 lakh cars were fined Rs 2.64 crores for violating this law.
• The RTO has laid down several rules and regulations that every law-abiding individual must actively follow to drive cars legally on Indian roads. Violating these rules (especially for repeat offences) can always potentially result in fines and penalties. Thus, it is vital to follow RTO rules to avoid penalties and maintain legal status while driving on Indian roads.
• Before using window tinting, it is essential to be aware of the applicable legalities. The RTO-approved sun control film for car prices may vary as different manufacturers and car décor shops offer various options in terms of quality. It would be wise to know the rules before spending money and getting caught in legal issues.
• Using high-quality sun control films that comply with the RTO’s rules can help reduce heat and glare and provide privacy without breaking any laws.

As a car owner, it is essential to ensure that you comply with the law to avoid being penalised and facing legal consequences while driving on Indian roads. Being informed and following the rules can help ensure a safe and hassle-free driving experience for everyone on the road.>

Why Are Tinted Windows Not Allowed in India?

• Manufacturers of sun shades for vehicles are urging the Indian Transport Ministry to lift the Supreme Court ban on tinted glasses in vehicles.
• In 2012, the Hon’ble Supreme Court of India strictly banned the use of tinted films in vehicles due to several cases of crimes committed against women inside vehicles with tinted windows.
• Currently, only car windows that the manufacturers have tinted are allowed.
• While some popularly known manufacturers of tinted films have presented new technology that allows for greater visibility, Transport Ministry officials are not willing to compromise on their stand against tinted glasses
• The Transport Ministry will only allow such glasses for security purposes, subject to permission from the Home Ministry and the police.
• Poor visibility is another primary reason behind the ban on tinted glass for vehicles

Does Sun Film for Cars Impact Car Insurance?

Car owners often wonder whether having tinted windows can affect their car insurance premiums or claims. If the tinted film on the windows exceeds the limits specified by the RTO, car owners may face difficulties claiming motor insurance.

It is important to note that tinted windows do not affect the process of buying a comprehensive car insurance policy. However, when it comes to making claims, non-compliant tinted glasses can lead to claim denial.

Despite the previous directive of the Supreme Court and the traffic police's efforts to prevent the use of tinted vehicles, cars and buses with dark glasses are still visible. As a result, the Union Road Ministry has written to the Insurance Regulatory and Development Authority of India (IRDAI) to prevent owners of vehicles with windows and windscreens darker than the permissible limit from claiming insurance. The aim is to crack down on vehicles with tinted windows to reduce crime.

Many believe that the regulation will be beneficial from a safety perspective, and vehicle owners will take the guidelines on tint more seriously. On the contrary, many others believe this move may not be useful because some car owners may remove the film of their vehicles after an accident to claim insurance.

Traffic police believe that the directive will make their job easier, but they need the infrastructure to check the exact percentage of light transmission of factory-fitted tint on vehicles.

How to Remove Tinted Film from Your Car?

There are various methods available to remove window tints from your car. The first method involves using a hairdryer or a heat gun to melt the glue, which makes it easier to peel the tint away. After melting the glue with the heat, you can use a clean towel to rub away the adhesive and then wash the windows with cleaner.

• Another method is to use a fabric steamer to melt the glue and remove the tint. This method also allows you to clean the upholstery of your car.

• The next method is the solar peel. You will require a spray bottle containing soapy water, a couple of black plastic garbage bags, another spray bottle of ammonia, and a tarp. You need to spray soapy water on the outside and quickly cover it with one of the bags. You can then spray ammonia on the inside of the window, cover it with the second bag, and allow it to bake in the sunlight for at least 20 minutes before removing the bags.

• The fourth method involves using old newspapers to remove the tint. You can wet the tint film with hot, soapy water and cover it with newspaper. One can proceed to meticulously remove the tint by utilising long strokes. If the film doesn't come off easily, you can soak it for another half hour.

• The final method is to peel the film away using a razor blade. After peeling the film, you need to remove the leftover glue.

What Are the Alternatives to Sun Films for Cars?

Detachable sun shades made of mesh are an affordable and safe option for blocking UV rays, light, and heat while reducing visibility from outside the car. They come with vacuum suction to attach to the glass but can be inconvenient to remove and put back when rolling down the windows.

Retractable drop shades are a more sophisticated option and roll up and down with the window glass, providing a premium feel to the cabin. Clear films are the best option for minimising light and heat, and 3M’s CR-70 is a good option as it allows complete visibility without being too dark. Indian law permits manufacturer-fitted films, and better than having nothing to protect the car’s interiors.

A new solution introduced in the Indian market is Dark Green UV Cut Glass. This reduces the thermal load inside the cabin and eliminates more than 82% of UV radiation while complying with Indian regulations. This is RTO-approved, making it a viable alternative to other options.

While several options are available in the market, it is always important to consider the cost, convenience, and legality before making a choice.

FAQs on Car Window Tinting in India 

1. Is car window tinting legal in India?

No, car window tinting is not legal in India and is regulated by certain visibility measures. 

2. Can I use transparent films for UV protection?

No, any film or coating available in the market is prohibited. 

3. Can I use curtains or blinds for my vehicle? 

Curtains and blinds are allowed for cars only when it is not moving. 

4. Is car tinting allowed for medical reasons?

  As of now, the Supreme Court has not granted any exemptions for car tinting based on medical reasons.

5. How to check if my car complies with VLT rules?

You can consult the manufacturer or your car insurance policy provider or test VLT with equipment available at authorised centres. 

Conclusion

Tinted glass is a popular addition to cars in India. However, strict regulations surround the usage of tinted glass in India, and violating them can result in fines and penalties. According to Indian laws, car windows must have minimum visibility for front, rear, and side windows, as well as windshields.

Any modifications that reduce visibility below this level are considered illegal. While some popularly known manufacturers of tinted films have presented new technology that allows for greater visibility, the Transport Ministry is determined to prioritise national security and women’s safety. As a result, the only car windows currently allowed to be tinted are those the manufacturers have tinted.

 It is important to be aware of the applicable legalities before opting for window tinting. Violating the RTO's rules and regulations can land you in a legal tangle. Hence it is vital to follow these rules to maintain legal status while driving on Indian roads.

Furthermore, non-compliant tinted glasses can lead to claim denial in case of a car insurance policy claim, so it is important to ensure that you choose tinted windows in compliance with the law.

Hyderabad, the capital of Telangana, is known for its rich cultural heritage, food, and of course, its traffic. In case you are a resident or a visitor to the beautiful yet populous city of Hyderabad, we’re going to talk about something that’s very close to our hearts (and wallets): The Hyderabad traffic challan. Yes, we all know how frustrating it can be to be at the receiving end of the “Hyderabad police challan.” Hyderabad Traffic Rules are enforced strictly by the traffic police to ensure the safety of the commuters on the road.

But fear not. In this blog, we’ll take you through everything you need to know about Hyderabad traffic rules and Hyderabad traffic fines. We’ll also give you a step-by-step guide on how to pay your Hyderabad challan, both online and offline, and how to check your e-challan status. So, buckle up, and let’s dive into the world of Hyderabad traffic challans!

Hyderabad Traffic Rules

The following is a list of important Hyderabad traffic rules that all drivers should follow:

Hyderabad Traffic Fines

The city is notorious for its heavy traffic, which often leads to violations of traffic rules and regulations. To discourage such violations, the Hyderabad Traffic Police Department has implemented a system of fines for offenders. The following table shows the various traffic violations and the corresponding fines imposed by the Hyderabad Traffic Police Department:

Are you tired of feeling like you are paying for car insurance that does not quite fit your needs? Maybe you are looking for coverage that specifically protects your car from damages caused by your actions without involving a third party. Or perhaps you are simply overwhelmed by the sheer number of car insurance policies out there, each with its jargon and fine print. Well, take a deep breath and relax because we are here to help. In this article, we will be diving into the world of standalone own-damage car insurance policies to help you understand what’s in it and what’s not covered.

What is Standalone OD Car Insurance?

Standalone own damage insurance is a type of car insurance policy that provides coverage for damage to your vehicle caused by events such as an accident, theft, fire, or natural disaster. The Insurance Regulatory and Development Authority of India (IRDAI) introduced the concept of standalone own-damage insurance in September 2018 to increase consumer choice and provide more flexible coverage options. However, you can avail of this coverage if your car has active third-party liability insurance.

How Standalone OD Car Insurance Works?

If you’re still a bit confused about own damage insurance meaning, let us dig deeper. For those unfamiliar, "own damage" (OD) refers to the harm done to your own property (in this context, your car). If your insurance has an OD clause, it will pay to fix your automobile if it is damaged. It's also possible to refer to this kind of insurance as "own damage" (OD) coverage, which stands on its own. However, third-party liability insurance refers specifically to a policy that does not provide coverage for the policyholder's damages but only covers damages to third parties. For instance, if you accidentally ram your vehicle into your neighbour's car, your auto insurance will pay to fix your neighbour’s automobile. But you will end up paying for the cost of repairing your own vehicle. 

This is where a standalone OD insurance policy is handy and helps you save money.

Why is Own-Damage Car Insurance Important?

While third-party insurance covers liabilities towards others, it doesn't account for damages to your vehicle. Repairing or replacing a damaged car can be financially burdensome. Own-Damage four-wheeler insurance ensures that you are not left bearing these costs alone. It provides peace of mind, knowing that in case of accidents, natural disasters, theft, or other unforeseen events, your financial interests are protected. Moreover, with the increasing complexity and cost of modern vehicles, having an OD cover becomes even more crucial to safeguard against substantial out-of-pocket expenses.

Who Should Buy a Standalone Own Damage Car Insurance?

Standalone Own Damage Car Insurance is ideal for:

• New Car Owners: Protecting a new vehicle from unforeseen damages ensures its longevity and maintains its value.
• Owners with Existing Third-Party Insurance: If you already have a third-party liability policy, adding a standalone OD cover provides comprehensive protection for your vehicle.
• Owners of High-Value Vehicles: Luxury and high-end car owners benefit significantly from OD insurance due to the higher repair and replacement costs associated with such vehicles.
• Individuals in High-Risk Areas: If you reside in areas prone to natural calamities, theft, or vandalism, an OD policy offers essential protection against these risks.

Essentially, any car owner looking to safeguard his vehicle against potential damages and financial losses should consider investing in a standalone own-damage car insurance policy.

What is Covered in OD Car Insurance Policy?

The own damage coverage includes:

● Accidents:

The standalone OD policy covers the repair and maintenance costs incurred as a result of your car's involvement in a collision or accident within the specified geographical boundaries.

● Theft:

Four-wheelers are a significant investment; a theft could cause serious financial hardship. Nevertheless, you can cover this financial loss with car insurance up to the insured declared value. However, keep in mind that you are only eligible for compensation if the insured vehicle gets stolen in its entirety and not just its components.

● Man made calamities:

Human-caused disasters such as riots, vandalism, or terrorism are unavoidable situations that can potentially harm property such as a house or a four-wheeler, as well as lead to unfortunate deaths. If your car gets damaged in such an event, your standalone car insurance policy will pay for the repairs of your vehicle.

● Natural calamities:

Events such as earthquakes, tsunamis, floods, or other similar unavoidable disasters can cause damage to your four-wheeler. However, with standalone car insurance, you won't have to worry about the extra costs.

Hence, own damage car insurance policy offers peace of mind and provides coverage for unforeseen circumstances.

What's Not Covered in Own Damage Car Insurance Policy?

Some key exclusions under own damage insurance are-

• If you intentionally cause damage to your own car or someone else's property, your insurance does not cover the costs.
• If you are using your car to commit a crime or activities prohibited by the government, your insurer may not cover any resulting damage or injuries.
• If you are driving under the influence of drugs or alcohol, your insurance provider may not cover any resulting damage or injuries.
• If you use your car for racing or other high-risk activities, your insurer may not provide coverage for any resulting injuries or damage.
• If you have made modifications to your car that your insurance company does not approve, your policy may not cover any resultant loss or injuries.
• If you use your car for commercial purposes, such as delivering goods or transporting passengers for hire, your personal car insurance may not cover any consequential injury or loss.
• Your insurance provider may not cover damage to your car due to normal wear and tear, such as mechanical breakdowns or routine maintenance issues.
• Accidents involving your car that result from a minor driver's negligence or a person who does not have valid insurance will not be covered by the insurance.

Compare: Third Party, Own Damage & Comprehensive Car Insurance

Understanding the differences between various four-wheeler insurance policies is crucial for making an informed decision.

What is the Own-Damage Car Insurance Premium?

The own damage car insurance premium is the amount you pay the insurer to avail coverage for damages to your vehicle. This is determined based on various factors, including the vehicle's Insured Declared Value (IDV), make and model, age, geographical location, and selected add-ons. The premium reflects the level of risk associated with insuring your vehicle against potential damages.

How is Own-Damage Car Insurance Premium Calculated

You can determine the premium for your car by applying the following formula:

Insured Declared Value X [Premium by insurer] + [Add-Ons costs] – [No Claim Bonus]

The insured declared value (IDV) is the maximum amount of compensation you can receive if your four-wheeler suffers irreparable damage or gets stolen. You can determine the IDV by deducting the depreciation cost from the original listed price.

Other factors insurers consider while determining the premium costs include:

• Age of the car:

Older cars generally have lower premiums as they have lower market values, while newer cars are more expensive to repair or replace, leading to higher premiums.

• Make and model of the car:
• Certain car models are more expensive to repair or replace, which can lead to higher insurance premiums.
• Driving history:

If you have a history of traffic rule violations, the premium for car insurance will be higher.

• Location:

Insurance premiums can vary based on where you reside, as areas with higher rates of thefts or accidents have higher insurance premiums.

• Usage of the car:

Cars that are used for business purposes or driven more frequently may have higher insurance premiums than cars used for personal purposes and driven less frequently.

• Safety features:

Cars with advanced safety features such as anti-lock brakes, airbags, and anti-theft devices may qualify for discounts on insurance premiums.

As the number of vehicles grows, the cases of road mishaps and thefts of four-wheelers have become common with each passing day. A standalone own-damage policy protects your car from any unfortunate event, relieving you of financial stress.

How to Reduce Own Damage Car Insurance Premium Amount?

While it is essential to have adequate coverage, there are ways to reduce your standalone own-damage car insurance premium:

1. Maintain a Claim-Free Record: Accumulate No Claim Bonus by avoiding claims for minor damages.
2. Choose a Higher Voluntary Deductible: Opting for a higher deductible reduces the premium, but you'll have to pay more out-of-pocket in case of a claim.
3. Install Anti-Theft Devices: Certified security devices can lower the premium due to reduced theft risk.
4. Limit Add-On Covers: Select only necessary add-ons to avoid inflating the premium.
5. Compare Policies: Shop around and compare premiums from different insurers to find the best deal.
6. Renew Policy on Time: Timely renewals prevent policy lapses and potential loss of benefits like NCB.

Factors Affecting Own Damage Car Insurance Premium

The calculation of the own-damage car insurance premium takes into account several key factors:

1. Insured Declared Value (IDV): This represents the current market value of your car. A higher IDV leads to a higher premium.
2. Vehicle's Age: Older vehicles have lower IDVs due to depreciation, resulting in lower premiums.
3. Make and Model: Luxury and high-end cars attract higher premiums due to increased repair and replacement costs.
4. Geographical Location: Areas with higher incidences of theft or accidents may lead to higher premiums.
5. Engine Capacity: Cars with larger engine capacities may have higher premiums.
6. Add-On Covers: Opting for additional covers like zero depreciation, engine protection, or roadside assistance increases the premium.
7. No Claim Bonus (NCB): A discount offered for claim-free years, reducing the premium.

Updated on - 19 Feb 2026

As per the provisions of the Motor Vehicles Act, car insurance is compulsory in India. But if one does not drive his/her car much or owns more than one car, it can become a financial burden. To avoid paying hefty insurance premiums in such situations, you can avail of pay-as-you-drive car insurance. We will explain how pay-as-you-drive car insurance works, its features, inclusions, and exclusions. We will also look into tips to lower the premium with pay-as-you-drive car insurance.

By the end of this article, we hope to provide a comprehensive understanding of pay-as-you-drive car insurance and its benefits to help our readers make an informed decision regarding this policy.

What is pay as you drive car insurance?

This implies “usage-based” car insurance. It allows one to pay for insurance based on the distance a person drives and how frequently he/she use the vehicle, rather than a flat fee. This means that those who drive their cars less pay a lesser amount as a premium, which can be beneficial for those who do not use their cars frequently.

In India, the Insurance Regulatory and Development Authority of India (IRDAI) has allowed insurers to introduce tech-enabled concepts, including pay-as-you-drive car insurance. One of the key advantages of PAYD car insurance is that it benefits those who do not use their car frequently. For instance, people who work from home, use public transport, or have multiple vehicles may not need to use their car frequently, resulting in lower premiums for them. PAYD car insurance can also benefit those who drive safely and follow traffic rules, as they can avail of discounts on their insurance premiums.

Overall, pay per mile car insurance is a useful innovation in the world of car insurance that can provide benefits for both drivers and insurers. It provides a fairer way of determining premiums and encourages responsible driving habits, making it a win-win for everyone involved.

How does pay as you drive car insurance work?

Pay-as-you-go car insurance is an excellent policy for individuals who don’t frequently drive or have low mileage, as it allows them to save money on their car insurance premiums.

The premium for pay-per-mile car insurance is calculated based on the number of kilometres driven by the driver. If a person drives the car for less than 15,000 km in the relevant year, the insured is eligible for the PAYD policy. The number of miles or kilometres travelled is determined through odometer readings declared by the insured.

Those eligible for a pay-as-you-drive car insurance plan can also avail of a discount of up to 10% on their “own-damage” insurance premium. The claim settlement process for the PAYD plan is similar to any other car insurance policy. This insurance is an excellent option for people who do not use the car frequently because if the mileage limit exceeded, you may have to pay an additional premium. Therefore, it is essential to calculate the estimated mileage beforehand to avoid any surprises in the future.

Features of the pay as you drive car insurance policy

The PAYD policy is a significant instrument for those who do not drive much or own more than one car. This type of plan helps these people save significantly on their insurance premiums. The notable features of the PAYD insurance plan are:

• The PAYD policy lasts for one year.
• The premium is calculated based on the odometer reading.
• Get a discount of up to 25% on the own damage portion of your car insurance.
• You can opt for the add-on coverage.
• This policy provides coverage for your own damage and also third-party liability.

Inclusions of pay as you drive insurance policy

Here are the inclusions of PAYD car insurance policies:

• Damage caused due to accidents
• Theft or vandalism
• Damage due to natural disasters
• Third-party liability
• Damage due to fire or explosion

Exclusions of pay as you drive car insurance policy

Like all insurance policies, PAYD car insurance policies have certain exclusions that policyholders need to be aware of. These exclusions are:

• Intentional damage
• Driving under the influence of drugs/alcohol
• Driving the car without a valid driving license
• Depreciation
• Damage due to electrical or mechanical failure

Tips to lower the premium with PAYD insurance

Since pay-as-you-drive car insurance is a type of auto insurance that bases its premium on how much and how safely a driver drives, here are some tips that policyholders can follow to lower their premium with PAYD insurance:

• Drive less: The less you drive, the lower your premium will be. If possible, try to carpool or use public transportation to reduce the number of miles you drive.
• Drive safely: Safe driving habits like obeying traffic rules and driving within the speed limit can help lower your premium.
• Choose a car with safety features: Cars with safety features like airbags and anti-lock braking systems can help lower your premium.
• Do not drink and drive: Drinking and driving are dangerous and can increase your insurance premium.
• Follow defensive driving techniques: Defensive driving techniques can help reduce your risk of getting into an accident.

Conclusion

Pay-as-you-drive insurance helps you save money if you don’t drive your car a lot. You pay based on how many kilometres you drive, so the less you drive, the less you pay. It still gives you full protection, including third party car insurance and coverage for damage to your own car. If you want a simple and budget-friendly way to stay insured, PAYD is a smart choice.

FAQs

1. How does PAYD insurance help me save money?

PAYD insurance lets you pay based on how much you drive. If you use your car less, you can save up to 25% off your own damage premium.

2. What happens if I exceed the kilometres in my chosen slab?

You can either upgrade your slab or pay for extra kilometres. Insurers usually give you flexible options to stay covered without a hassle.

3. Can I still get add-ons with PAYD insurance?

PAYD plans work just like standard ones when it comes to add-ons. You can boost your coverage with options like zero depreciation, roadside assistance, and more.

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.

Updated on - 09 Feb 2026

When buying car insurance, many people wonder if compulsory third-party (CTP) cover is automatically part of a comprehensive plan. Both terms often appear together, but their roles are quite different. Third-party insurance protects others affected by your vehicle, while comprehensive cover safeguards your own car as well. Understanding how these two work together helps you choose the right policy without paying for unnecessary add-ons or missing essential protection.

Let’s break down how CTP and comprehensive cover differ, and whether one includes the other.

What is CTP (compulsory third-party) insurance?

Compulsory third-party (CTP) insurance, also known simply as third-party insurance in India, is a basic motor insurance cover required by law in India. It covers damages or injuries caused to third parties, their vehicles or property by your vehicle. This type of insurance ensures that victims receive compensation for their losses while protecting you from hefty legal or financial liabilities.

Is CTP mandatory in India?

Yes, third-party insurance is mandatory in India under the Motor Vehicles Act, 1988. Every vehicle owner must have this basic coverage before the vehicle is legally allowed on the road. Driving without valid third-party insurance is a punishable offence.

The penalty for not having third-party insurance can be a fine of up to ₹2,000 for the first offence and ₹4,000 for subsequent ones, along with possible imprisonment for up to three months. Additionally, the driver becomes personally liable for any injury or damage caused to others in an accident, and authorities have the right to seize the uninsured vehicle until valid insurance is obtained. 

Difference between CTP and comprehensive cover

Knowing the difference between third-party insurance and comprehensive car insurance is crucial to ensure they have the right protection while meeting legal requirements.

Is compulsory third-party cover included in comprehensive insurance?

Yes, third-party cover is included in a comprehensive car insurance plan. In India, a comprehensive plan provides two types of protection: third-party liability cover and own-damage cover for your vehicle.

The third-party cover ensures that any injury, death or property damage caused to another person by your vehicle is financially taken care of. The own-damage cover protects your car against risks such as accidents, theft, fire, natural calamities and vandalism.

In simple terms, when you purchase comprehensive insurance, you automatically receive third-party protection along with wider coverage for your own vehicle. This makes it a complete plan that safeguards both you and others on the road.

How to add CTP to your comprehensive policy?

You do not need to add third-party cover separately to your comprehensive car insurance plan, as it is already included by default. As mentioned, comprehensive insurance in India provides both third-party liability cover and own-damage protection under a single plan.

If you wish to renew or upgrade your policy for enhanced coverage, you can do so easily by following these steps:

1. Contact your insurer: Reach out to your insurance provider through their website, app or customer service helpline.
2. Choose a comprehensive plan: Ask for a comprehensive car insurance plan that includes both own-damage and third-party coverage.
3. Submit necessary details: Provide your vehicle registration number, policy details and identification documents.
4. Pay the premium: Once the insurer calculates your updated premium, make the payment to activate your coverage.
5. Receive updated policy documents: You will get a revised policy document showing both own-damage and third-party protection.

It is always recommended to keep your third-party cover active, as it is legally required and ensures financial protection against liabilities to others in case of an accident.

Conclusion

Understanding the difference between third-party and comprehensive car insurance is essential to ensure complete protection for your vehicle and financial safety. While third-party motor insurance is a legal requirement covering injuries to third parties, comprehensive insurance safeguards you for your own damages as well. Maintaining both gives you peace of mind on the road and ensures you’re covered in every situation.

If you’re planning to review or upgrade your car insurance, take a moment to fill out the form on this page to get expert advice.

FAQs

1. Can I buy both CTP and comprehensive insurance from the same insurer?

Yes, many insurers offer both policies, allowing you to conveniently purchase and manage them together.

2. What does CTP insurance cover?

Compulsory third-party, or simply third-party insurance, covers damages to third parties in an accident caused by your vehicle.

3. What does comprehensive car insurance cover?

Comprehensive insurance covers damages to your vehicle due to accidents, theft, fire or natural disasters, as well as third-party damages.

4. Is third-party insurance mandatory in India?

Yes, every registered vehicle must have valid third-party liability insurance to be legally driven on Indian roads.

5. Can I convert my existing third-party insurance plan to a comprehensive one?

Yes, you can upgrade by applying to your insurer, submitting the required documents and paying the premium difference.

6. Why should I have both CTP and comprehensive insurance?

Having both ensures legal compliance and full financial protection against third-party liabilities and personal vehicle damage.

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.