Bringing in your first car at home is always special and so is taking it out on the roads to explore the world—think of all the adventure and memorable drives awaiting you. But before you embark on a drive, always make sure to carry your driving licence and car insurance documents along. Surely, you would not like to get caught by the traffic police and be penalised for driving without the required papers on the very first day of driving your new car. Also, make sure to follow all traffic rules and regulations to ensure your safety and that of others. For first-time car buyers, here are some tips for driving a car safely:

1. Slow Acceleration

Do you feel like pressing the accelerator and speeding along before others as soon as the traffic signal becomes green? This is common among most first-time drivers but you must control your impulses. Always increase the speed slowly as it is good for the engine as well. Bring the car to roll along slowly from a complete stop and then push the accelerator down in steps. Try to feel the position of the wheels to avoid potholes, a common feature on Indian roads.

2. Steer Steadily

Keep your hands firmly on the steering wheel to keep it steady. This is important for moving in a straight line on the road or during taking turns or changing lanes. Try to stay in the lane meant for your type of car and maintain adequate distance from other vehicles while taking turns or during changing lanes. In case you see a turn or exit coming up, move to the correct lane—left or right—a little early. You may cause problems to the other drivers if you suddenly bring your car in front of their car while taking a turn. The far-left lane is usually for exits and the centre lane for travelling long distances at a constant speed.

3. Control the Brakes

Do not push the brake all of a sudden. It can result in your car getting hit by another car or two-wheeler from behind. You may also hit a vehicle or a pedestrian if you are not able to control the brakes and bring the car to a stop abruptly. It is possible to injure yourself or your fellow passengers as sudden brakes can knock people out of the seats. Strap on the seat belts to keep the impact at a minimum. If you see the signals turning yellow, start applying pressure on the brakes to bring the car to a halt at the proper time. Despite that, if there is an unfortunate incident, inform your insurer immediately. You may call up the emergency number given on your car insurance policy to get help.

4. Do Not Over Speed

Adhere to the speed limits even if you are extremely confident about your driving skills. Rash driving, which is common on Indian roads, is the reason behind most of the accidents. It is for your safety as well as that of others on the road that you must drive at a medium speed or as specified by the traffic department. The traffic department takes into account several aspects such as road type, frequency of accidents, traffic volume, and visibility while fixing the speed limits for different types of roads such as highways, flyovers, and crossroads.

Updated on 10-04-2025

A car’s registration number is the key to information regarding the car’s present owner—for authorities as well as for the common man. Surprised? Don’t be. If you want to track down a car owner who may have either bumped your car and fled the scene or may have caused you trouble by blocking your car in a parking lot, then you can do it in a few easy steps. Today, we will look at how to find the owner of the vehicle by license plate number.

How to Check Vehicle Owner Details by Number Plate Online?

There are multiple ways to check vehicle owner details online. The most commonly used methods include:

1. Through the VAHAN Portal: The VAHAN database is a centralised repository of all registered vehicles in India, managed by the Ministry of Road Transport and Highways.
2. Via SMS Service: The government provides a simple SMS-based service to fetch vehicle registration details without an internet connection.
3. Parivahan Sewa Portal: Another platform that offers vehicle registration details, including ownership and insurance validity.

Check the Owner's Details by Number Plate Through the VAHAN Portal

VAHAN portal furnishes the vehicle registration details following the MV Act of 1988. The portal complies with the regulations of different states and UTs.

You can find the owner of the vehicle by license plate number by using the PARIVAHAN portal. To do that, don't stress much and simply follow the steps given below.

• Step 1:

Go to the PARIVAHAN official website: https://parivahan.gov.in

• Step 2:

Click on “Information Services” and go to “Know my Vehicle”. You will be led to the VAHAN portal.

• Step 3:

Enter the car's registration number you intend to check.

• Step 4:

Input the verification code, or say, a CAPTCHA, given on the page. 

• Step 5:

Tap on "Check Status".

• Step 6:

Your screen will display all the relevant details related to the car.

What Vehicle Owner Details Can I Get Through the VAHAN Portal?

Using the VAHAN portal, you can trace down the following details.

• Car owner’s name
• Car's registration date
• Vehicle class and fuel type (diesel or petrol)
• Car's chassis and engine number (not detailed in full)
• Vehicle's make and model, along with the manufacturer's detail
• Car's fitness duration
• PUC and insurance details
• Car's RC status and details of the financier 
• Car's emission standard

How To Check Vehicle Registration Details With SMS?

If you don't want to go through the aforesaid steps online, simply take out your phone and send a single SMS to obtain the car owner's information. To learn more about the SMS method, follow the steps outlined below.

• Step 1:

Enter your car's registration number by writing VAHAN before that number. (Example: VAHAN UP65CF××××)

• Step 2:

After drafting the above text, send the SMS on 7738299899.

• Step 3:

After texting on the above number, you will receive the car's details such as owner name, make and model, RTO details, car insurance details, and RC expiry details, among a few others.

What is RC (Registration Certificate)?

The Registration Certificate (RC) is an official document issued by the RTO, proving that a vehicle is registered with the Indian government and legally allowed to be driven on roads. Every vehicle owner must have an RC, either in a physical format (RC Book) or an electronic format (e-RC).

Without a valid RC, a vehicle cannot be legally driven, sold, or transferred. The RC serves as proof of ownership and is required during legal or insurance-related proceedings.

What Information Does a Registration Certificate (RC) Contain?

A vehicle’s RC contains essential details such as:

• Registration Number
• Owner’s Name & Address
• Vehicle Make & Model
• Chassis Number
• Engine Number
• Date of Registration
• Validity Period
• Fuel Type
• Seating Capacity
• Insurance Details
• Emission Norms Compliance (BS-IV, BS-VI, etc.)

These details are critical when buying or selling a vehicle, transferring ownership, or claiming car insurance.

Why Do We Need to Check RC Details Online?

Here is a list of some of the common situations in which finding the owner of a vehicle is critical.

• Accident:

When an accident causes bodily injury or substantial damage to your vehicle, knowing the details of the car's owner becomes critical. Following the accident, immediately use one of the above methods to find the vehicle owner by number plate. This will not only assist you in filing an FIR but also in filing an insurance claim.

• Hit and run case: 

When a hit and run case occurs, stopping a culprit driver is one of the toughest tasks. The only thing you can do in this situation is note down the car's number from the number plate. Once you have the number, you can easily trace the owner using one of the aforementioned methods.

• Buying a Used Vehicle:

When you are purchasing a second-hand car, it is critical to know the information of the previous owner. Given the rise in car theft instances, buying a second-hand car without verifying the car owner's information, RC papers, insurance papers, PUC, and other documents might result in serious consequences. As a result, understanding how to find a vehicle's owner by number is critical because it provides all vehicle-related information.

• No Objection Certificate:

With the availability of the VAHAN and PARIVAHAN portals, Regional Transport Office (RTO) can easily track the details of your vehicle using any of the above portals. Therefore, furnishing a NOC is not necessary in certain cases.

FAQs

Q1. Is it legal to check someone else’s vehicle details online?

A: Yes, it is legal to check basic vehicle details online, but sensitive information such as the owner's contact details or address is restricted to protect privacy.

Q2. Can I check the vehicle owner’s address through VAHAN?

A: No, the VAHAN portal does not display the vehicle owner’s address due to privacy regulations.

Q3. How can I verify a used car’s authenticity before buying?

 A: You can use the VAHAN portal to check registration details, insurance validity, and pollution certification.

Q4. What should I do if my vehicle details are incorrect in the VAHAN portal?

A: Visit your nearest RTO with supporting documents to correct any discrepancies.

Q5. Can I download a digital copy of my RC online?

A: Yes, you can download an e-RC from the DigiLocker app or the mParivahan app.

Q6. How to get my car’s registration certificate details?

A: Visit the VAHAN portal and go to “Know your vehicle.” Follow the steps as directed, and you will find the details of your car RC.

Conclusion

With lakhs of cars on Indian roads, finding a vehicle in an unfortunate event might be challenging. However, the above-mentioned online platforms can make it simple to find a car owner by registration number. These services help in legal verification, second-hand vehicle purchases, accident investigations, and compliance with transport regulations. Always ensure that the vehicle’s RC details and car insurance are valid and up-to-date to avoid legal complications and drive safely on the roads.

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.

Factually, transferring car ownership is a lengthy process. It involves the new owner of the car, the previous owner, and a pile load of necessary documents that need attestation and verification. However, some digital platforms have introduced ways to do it with ease. Before we look into the transfer process in detail, let us understand what it means and when it shouldn’t be done.

• Normal sale and purchase of a used car, wherein the old owner’s name and details on the vehicle’s registration certificate (RC) must be replaced by the new owner’s details.
• Transfer in the case of the existing owner’s demise, whereby the legal heir to the car must inform the RTO about the demise within the next 30 days. However, the utilization of such a car by the heir is allowed for the next 3 months following the owner's demise.
• Vehicle purchase during a public auction; herein, the original owner’s name is replaced by that of the new owner to whom the vehicle has been auctioned.

The process involved in the transfer of car ownership online and/or offline can subtly vary. You may also initiate the process by submitting the necessary application forms on the central government’s dedicated website—‘Parivahan.’

Car ownership transfer within the same state

To change ownership of a car under normal sale/purchase, just follow these steps:

• Fill up Form 29 with the necessary details online and take a print.
• Once the details are verified, hand out the form to the local RTO at the seller’s and purchaser’s location of residence. Herein, the purchaser needs to submit Form 30 within 14 days of transfer along with documents related to Form 1 and 2.

Inter-state change of ownership

Transferring ownership between different states involves additional steps:

• In the case of inter-state transfer, the purchaser needs to fill up Form 30 within 45 days of such transfer and submit necessary documents.
• The buyer must also pay the necessary charges levied on such transfer under Rule 81 of the General Motor Vehicles (GMV) Rules 1989 to complete inter-state transfers.

The necessary documents involved include the vehicle’s RC, insurance certificate to car insurance certificate, PUC certificate, engine and chassis pencil print, the registering authority’s NOC, tax clearance certificate and the purchaser’s undertaking, along with identity and address proofs of both parties involved in transferring car ownership.

Car ownership transfer in the case of existing owner's demise

Here’s how one can transfer car ownership to the heir in the case of the demise of the car owner:

• Provide the duly filled up Form 30 to the RTO within the next 3 months.
• Submit necessary documents such as the owner’s death certificate, a document proving the heir’s relationship with the owner, and Form 20, along with other standard documents.
• Pay the necessary fees levied under the GMV Rules 1989.

Car ownership transfer in the case of public auction

To transfer car ownership online in the case of a public auction, follow the steps given below:

• Submit a filled up Form 32 if such auction is sponsored by a state or the central government, within 30 days of purchase.
• Hand over necessary documents to the local RTO. The paperwork involved is more or less similar to in the first case. In addition, you will also have to present proof of the auction conducted by the government.
• Pay the necessary fees levied under Rue 81 of the GMV Rules 1989.

After applying for a car ownership transfer, you can check the status of your request online on the Parivahan website. You would only need your vehicle’s registration number to stay updated on transferring car ownership.

Documents required for change of ownership

The following documents are generally required for transferring car ownership:

• Registration Certificate (RC): The current RC of the vehicle.
• Forms 29 and 30: Notices and applications for transfer of ownership.
• Insurance Certificate: Valid car insurance policy document.
• Pollution Under Control (PUC) Certificate: Valid emission test certificate.
• Address Proof: Valid identification and address proof of both buyer and seller (e.g., Aadhaar card, passport).
• PAN Card: PAN details of both parties; Form 60 if PAN is unavailable.
• No Objection Certificate (NOC): Required for inter-state transfers or if the vehicle was under a loan.
• Death Certificate and Succession Proof: In case of the owner's demise.
• Sale Certificate: For vehicles bought in public auctions.

Ensuring that the car insurance policy is transferred to the new owner is vital. A valid insurance policy is mandatory for the transfer process and driving without appropriate coverage can lead to legal complications. If the existing policy is not transferred, the new owner should procure a new third party car insurance policy to comply with legal requirements.

Conclusion

Transferring car ownership in India involves a series of well-defined steps and the submission of specific documents. Whether the transfer is within the same state, across states, due to the owner's demise or through a public auction, adhering to the outlined procedures ensures a seamless transition. Always ensure that the car insurance is updated to reflect the new ownership, maintaining compliance with legal mandates and safeguarding against potential liabilities.

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. 

Often commuting by cab or your car makes the journey smooth. You may enjoy the thrill of being behind the wheel or prefer relaxing in the rear seat humming your favourite tune. Either way, do you wear a seatbelt whenever you are on the go?

Why wearing a seatbelt is important?

In a report, this year, WHO said wearing belts in the rear seat can reduce the risk of being killed and injured by 25% and 75% respectively. Closer home, surveys done by Maruti Suzuki India in 2017 revealed poor compliance with seatbelt laws as hardly 4% of respondents used seatbelts.Compared to 2020, deaths by road accidents increased by almost 17% in 2021. Do you know what was one of the major causes of death? Yes, not wearing a seatbelt.

How do seatbelts help in enhancing safety?

Seatbelts hold the occupants of the car in place and prevent them from being catapulted forward during an accident. While the seatbelt ensures that the individual stays in his/her place, the airbag’s job is to protect the head and chest from impact. During a collision, seatbelts provide the primary restraint, whereas slamming into an airbag in case of an accident reduces the impact. While all cars in India have seatbelts at the front and rear, they may not have rear airbags. For safe driving, you must get them as part of the accessories. 

Let’s look at what the Indian law says about seatbelts

We all know that wearing a seatbelt is mandatory while sitting in a front seat. But did you know it's compulsory for rear seats too? In India, most cars have rear seats that face the front. As per Indian law, car manufacturers must provide seatbelts for all such seats too and passengers must buckle them up. Breaking this rule can attract a fine of Rs 1,000 for the passengers. However, the execution of the rule remains a concern.

A 2019 report by SaveLIFE Foundation stated that not even 1% of Indians use rear seatbelts. What’s worse is that 23.9% of those surveyed did not even know about rear seatbelts. The study also revealed that 77% of the kids who travelled in the rear seat did not wear seatbelts.

In February, the Ministry of Road Transport and Highways proposed that all front-facing seats must have a Y-shaped seat belt. The proposal included the rear-middle seat as well. 

Debunking a few myths around seatbelt safety 

Myth: In case of fire or drowning situations, seatbelts trap you inside the car  
Fact: Two things to know here are—one, the chances of collision are way higher than a car catching fire or getting submerged in water. Two, there are very less chances of malfunctioning of the seatbelt release mechanism. The benefits outweigh the risks.  
 
Myth: If your car has airbags, you may skip wearing seatbelts 
Fact: As explained earlier, the two have very distinct roles and save you when used together. One without the other may prove useless.  
 
Myth: Seatbelts are needed only on highways 
Fact: Accidents can happen anywhere regardless of how short the distance or how slow you are driving. Always wear seatbelts.  

General seatbelt guidelines to follow 

Gone are those days when you had to pay a fixed yearly premium for your motor insurance policy. You can now buy a policy that charges you a premium based on your vehicle usage or driving behaviour.

The Insurance Regulatory & Development Authority of India (IRDAI) has permitted general insurance companies in India to launch telematics-based motor insurance covers such as Pay as you drive and Pay how you drive, allowing vehicle owners to decide how much to pay for their insurance.

By utilizing technology's ability to transmit accurate data on vehicle location and driving behaviour, IRDAI's new rule is a welcome move as it creates a win-win situation for both insured and insurers in India.

What is pay as you drive & pay how you drive add-on covers?

Unlike any other car insurance policy in the market, these new policies are built to give you more control over your motor insurance costs. It allows you to prove you are a safe driver, and as a result, you can be rewarded with lower insurance prices on renewal. The lesser/ better one drives, the lower premium they will have to pay.

These insurance add-ons also enable insurance companies to offer reduced average pricing, appeal to low-risk individuals, reduce claims management costs, and improve the overall customer experience.

How do these add-ons work?

This type of add-on works differently if you opt for a pay-as-you-drive or driving behaviour-based cover.

Pay as you drive

Pay-as-you-drive cover operates on the simple rule that you should pay less for insurance if you drive less. Since you are not out on the road often, you have a low accident risk, and your insurance bill should reflect the same.

This type of insurance allows you to insure your car based on the kilometres you drive in a year. Depending on your driving needs, you can opt for a mileage plan between 3000 to 10,000 km/year. If you exceed the kilometres of your plan, you also have the option to top up your insurance coverage with more kilometres for that particular policy year.

According to a survey conducted by Feedback Consulting, 75% of Indian commuters travel less than 1,000 km a month (or roughly less than 35 km a day), and most people simply travel from home to office. The Pay-as-you-drive add-on guarantees policyholders do not have to pay a huge premium as on the make and model of the car but rather on how much they use their vehicle

Pay how you drive

The premium for Pay how you drive cover is calculated based on how you drive your car while on the road. The better and safer you drive, the less you pay.

The telematics device uses GPS technology to calculate your driving scores, vehicle health and other metrics to collect facts about your driving. This information collected is then used to calculate a driver score that is unique to you.

If it's good, you could reduce your insurance premium at the time of renewal and get a thumbs up for safe driving. While there are no penalties yet for low driving scores, the premium discounts these drivers can avail of are also very low. Drivers can also use these scores to improve their driving and build better habits.

Benefits of paying as you drive

There are multiple benefits of using a pay-as-you-go or pay-as-you-drive option:

• Cost savings: If you are a low-mileage driver, PAYD can significantly lower your insurance premium.
• Customisable plans: Choose coverage that reflects how much you drive.
• Promotes safe driving: PHYD incentivises cautious and efficient driving by linking it to savings.
• Transparency: Your car insurance plan becomes more tailored and transparent, with usage-based metrics.
• Ideal for city dwellers or multiple vehicle owners: People who use their cars occasionally can avoid paying premiums based on inflated risk estimates.

Who should consider buying pay how you drive cover?

Many drivers may benefit from a behaviour-based telematics car insurance cover if they drive safely and avoid accidents. This cover especially makes sense for demographic groups that are charged above-average premiums, such as:

1. Car owners living in metros
2. Drivers residing in high-accident-prone or high-crime areas
3. Car owners who wish to drive more safely and improve their savings on insurance

Who should consider buying Pay as you drive cover?

The pay-as-you-drive cover is a good fit for:

1. Retirees
2. Employees who work from home
3. City residents who mostly use public transit
4. Owners of a vehicle only driven occasionally
5. Owners of multiple cars, with some of those driven occasionally
6. Anyone who drives less than 35 miles a day

How much can I save with pay-as-you-drive insurance?

Since standard car insurance premiums depend on geography, make-model, and age of the vehicle and are not based on their usage, most car owners who opted for Pay as you drive policy saved on their premiums.

Our experience with the Pay as you drive policy under the Sandbox regulation in 2020 also helped us learn that 56% of customers chose to Pay as you drive over conventional insurance due to its cost-effectiveness and usage-based premiums. In comparison, 22% bought this policy due to its telematics benefits.

Conclusion

While PAYD & PHYD can help many save on their premiums, sometimes, you may not see a discount even if you are a good driver. If you commute to distant locations for work every day and drive above the average speed often, you're more suited for a standard insurance plan.

These add-ons are suitable for customers with multiple or expensive cars looking for a motor policy that gives them more control over how much they spend on insurance every year. If you are looking for smarter, more flexible coverage under your comprehensive car insurance, consider switching to these usage-based models. You will not only save money but also contribute to a more responsible driving culture.

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.

Mostly, people who are driving for the very first time generally get into the dilemma of choosing a particular petrol type when they arrive at a gas station. They get confused about whether to choose normal or premium petrol. Comparing the prices of both types, anyone could figure out that premium petrol is a higher grade of petrol, but no one realises what extra factors give each petrol type its own character and associated results. Premium petrol has its own properties and varies in cost according to brands and specifications. Certain vehicle engines require high-grade petrol. The vehicle owners should be careful in such cases, because nowadays there are lot of scams happening at gas stations where they cheat the customers by filling up normal petrol while saying that it is premium type. For engines designed to run on premium petrol, this could eventually cause severe malfunction. To cover the repairing expenses arising out of such instances, vehicle owners are recommended to keep their vehicle insurance handy. Buy the best two wheeler or car insurance to protect your vehicle from such liabilities.

What is premium petrol?

Petrol contains a chemical component called octane. Premium type petrol has a higher rate of octane component in it. The measure of octane contained inside the fuel decides how well it will function in higher-pressure motors – high-octane fuel works more successfully than lower-rated fuels. Premium fuel is more expensive than standard due to its higher rate of octane. The benefits of this increased octane rating include lower fuel consumption as well as better engine protection and performance.

Key features of premium petrol

• Higher Octane Rating: Provides good resistance to engine knocking, ensuring smoother performance in high-compression engines.
• Additives and Detergents: Contains additional compounds that help reduce carbon deposits and maintain engine cleanliness.
• Enhanced Performance: Suitable for vehicles designed for high-octane fuel, potentially offering improved acceleration and efficiency.

What is normal petrol?

Regular petrol is rated at 87 octane in most places. Fuel with a higher octane rating can stand up to higher compression before it detonates. Engines with high compression ratios or turbochargers often require high octane fuel found in premium gas for optimal performance and fuel efficiency. However, the majority of cars on the road today are optimized to run on normal petrol.

Key features of normal petrol

• Standard Octane Rating: Sufficient for vehicles with regular engine designs, ensuring proper combustion without knocking.
• Cost-Effective: Priced lower than premium petrol, making it economical for daily commuting and general use.
• Widely Available: Easily accessible across fuel stations, catering to the majority of vehicles on the road.

Difference between premium petrol and normal petrol

Following are the key differences between normal and premium petrol:

Different types of petrol in India

In India, petrol variants are categorised based on their octane ratings and additive content:

1. Normal Petrol (91 Octane): Standard fuel suitable for most vehicles.
2. Power Petrol (91 Octane + Additives): Regular octane fuel enhanced with additives for better engine performance.
3. Premium Petrol (91 Octane): Higher octane fuel designed for specific engine requirements.
4. Extra Premium Petrol (95 Octane): Higher octane fuel suitable for high-performance vehicles.
5. Extra Premium Petrol (97 Octane): Even higher octane fuel, often recommended for luxury or high-performance cars.

Premium petrol vs normal petrol: Which is the right choice for your car?

The decision between premium and normal petrol hinges on your vehicle's engine specifications and manufacturer recommendations:

• Manufacturer's Recommendation: The best performance will be judged by utilizing the fuel suggested by the maker of the engine. The maker's designers put extraordinary exertion into getting the best all-around execution from the motor and whole vehicle with the recommended fuel.
• Engine Type: The advantage obtained by premium fuel, which is harder to ignite through the heat of compression, is that an engine can be forced to run at a higher compression and, thus, develop more power. It does nothing for an engine designed for a lower-octane fuel, and if the higher-octane rating is achieved by additives that have less energy than the gasoline, performance in a low-octane engine will be reduced. If your engine is designed for high octane fuel, then premium fuel is recommended. If it is not, then standard fuel is recommended.
• Cost Considerations: If your vehicle does not require high-octane fuel, using normal petrol can be more economical without compromising performance.

In either case, it is always recommended to purchase a two-wheeler insurance so that you may stay safe irrespective of whatever type of fuel your vehicle consumes.

FAQs

1. Can using premium petrol improve my car's mileage?

If your car is designed for regular petrol, switching to premium petrol is unlikely to yield significant improvements in fuel efficiency.

2. Will using normal petrol damage a high-performance engine?

Using normal petrol in an engine designed for premium fuel can lead to knocking and potential long-term damage. It's essential to adhere to the manufacturer's fuel recommendations.

3. Is premium petrol cleaner than normal petrol?

Premium petrol often contains additional detergents that help keep the engine clean. However, fuel cleanliness also depends on the supplier and regional fuel standards.

4. How do I know which petrol is right for my car?

Take advice from your car's owner manual or contact the manufacturer to understand the recommended octane rating for your car's fuel.

5. Does premium petrol affect car insurance premiums?

The type of petrol used does not influence car insurance premiums. Factors like vehicle model, usage, and coverage type determine insurance costs.

Conclusion

Choosing between premium and normal petrol depends largely on your vehicle's design and the manufacturer's recommendations. While premium petrol benefits high-performance engines, most standard vehicles operate efficiently on normal gasoline. When choosing, refer to your owner's manual and consider factors like engine compression and fuel costs. Additionally, comprehensive car insurance protects your vehicle against unforeseen events, complementing the care you provide through appropriate fuel selection.

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 10-04-2025

One fine morning Mr. Bose called his close friend, Devyani and tells her that his car has gone for maintenance service, but he has some important errands line up for the day. Devyani happily obliged him when he asked to lend her car for the day. Hours later, he called her again to inform that he has met with an accident.

You can find yourself in Devyani’s shoes at some point in your life. You might be wondering if your car insurance coverage is still applicable when your friend crashes your car. At such a juncture, several questions can make you anxious.

• Can I claim the insurance on my damaged car?
• Is my friend covered under the insurance plan?
• Who will pay for the compensation amount against the damages?

Coverage for Accidents Caused by a Friend

You might be scratching your head on the above question. The good news is that most other drivers are covered under car insurance. ‘Permissive Drive’ rules are applicable in such instances. The driver should be driving your car with your consent, along with a valid driving license.

According to the Indian motor tariff, anyone can drive a car under the permitted laws. Hence, don’t worry before lending your car to your friends or family members. You can make a claim with your motor insurance company even when your friend crashes the car.

How Will the Damage Be Covered?

If your friend borrows your car and he/she meets with an accident damaging it, normally, your insurer will pay the compensation amount under ‘collision coverage’, and you will have to pay the deductible. If your friend is also injured while driving, your insurance may pay for the driver under ‘liability coverage’ unless he/she is excluded by the policy.

However, if the accident was caused by the negligence of any other driver on the road and you can prove it, the third-party insurer of that driver will pay the compensation to you and your insurance will remain unaffected.

Thus, there is no harm in lending your vehicle to your friends or family members as your car insurance will cover the damages under the collision coverage. However, always make sure the person has a valid driving license and he/she is driving under the permissible laws.

Steps to Take After a Friend Crashes Your Car

In the unfortunate event that your friend crashes your car, follow these steps to ensure a smooth claim process:

1. Ensure Safety: First and foremost, check for any injuries to your friends, passengers, or third parties involved. Seek medical assistance if necessary.
2. Document the Scene: Take photographs of the accident scene, including damages to all vehicles involved, licence plate, and any relevant road conditions or signs.
3. Exchange Information: Collect contact and insurance details from all parties involved in the accident.
4. File a Police Report: In India, it's mandatory to file a First Information Report (FIR) for accidents involving third-party injury or significant property damage. This report is crucial for the insurance claim process.
5. Notify Your Insurance Company: Inform your insurer about the accident as soon as possible. Provide them with all necessary documentation and cooperate fully during the investigation.
6. Avoid Admitting Fault: Tell your friend not to admit fault at the scene. After a thorough investigation, the authorities and insurance companies should determine the fault.

Documents Required to File a Car Insurance Claim

To expedite the claim process, ensure you have the following documents ready:

1. Duly Filled Claim Form: Obtain this from your insurance company or download it from their website.
2. Copy of the Vehicle's Registration Certificate (RC): This verifies ownership and details of the vehicle.
3. Driver's Licence: A copy of your friend's valid driving licence.
4. First Information Report (FIR): Especially necessary in cases involving third-party injury or significant damages to their property.
5. Insurance Policy Document: A copy of your car insurance policy.
6. Repair Estimates: Obtain a repair estimate from an authorised garage.
7. Medical Reports: If there were any injuries, medical reports and bills might be required.

Having these documents organised and readily available can significantly streamline the claim settlement process.

FAQs

1. Will my insurance premium increase if my friend crashes my car?

Yes, filing a claim can lead to an increase in your insurance premium upon renewal. Additionally, you may lose any accumulated No Claim Bonus.

1. Is my friend liable to pay for the damages?

Legally, as the car owner, you are responsible for damages. However, you can have a personal agreement with your friend regarding reimbursement for deductibles or increased premiums.

1. What if my friend was driving under the influence?

If your friend was intoxicated during the accident, the insurance company is likely to reject the claim due to a violation of policy terms.

1. Does insurance cover apply if my friend is a learner driver?

If your friend holds a valid learner's licence and adheres to the conditions (such as being accompanied by a licenced driver), the insurance should cover the accident. However, it's essential to verify this with your insurer.

1. Can I exclude certain drivers from my insurance policy?

Some insurance policies allow you to exclude a specific person or persons from the insurance. Consult the insurer and communicate your needs to learn more about such details. 

Conclusion

Letting a friend drive your car can be generous, but you should be aware of how it affects your insurance coverage. Ensure that your friend is a responsible driver with a valid licence and follows all traffic laws. Learn all about your policy's terms and conditions while buying car insurance online to avoid any surprises in the event of an accident. Open communication with your insurer can provide clarity and ensure that you're adequately protected, regardless of who is behind the wheel.

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.

Long-distance and off-road journeys can become a nightmare if the conveyance is uncomfortable and nothing is as painful as the spoilt memories of a wrecked trip. A good car comes to the rescue in such a case.  Cars in India are still considered a status symbol for the owner and it is extremely important to wisely choose a car according to the requirements, equipped with good features ensuring the safety of the travellers and great performance. Several new features have been introduced lately like electric sunroof, LED headlamps, multi-info display, power steering, advanced infotainment system, etc. A comfortable and spacious vehicle is a pre-requisite for a long journey.

How to choose a long distance driving car

When selecting a car for long road trips, consider the following factors:

• Fuel Efficiency: Opt for a car with good mileage to reduce fuel expenses.
• Comfort and Space: Ample legroom, supportive seats and a spacious cabin enhance travel comfort.
• Safety Features: Look for airbags, ABS, electronic stability control and lane assist.
• Reliability and Performance: A powerful engine, smooth suspension and good ground clearance are essential for varied terrain.
• Technology and Infotainment: GPS navigation, music system and smartphone connectivity enhance convenience.
• Insurance Coverage: Comprehensive car insurance is crucial to safeguard against unforeseen damages or breakdowns.

Best long distance driving cars

Here you can find the curated list of top 5 cars suitable for such memorable trips with family, friends or solo ones too:

• Maruti Suzuki Ciaz

With great comfort, more space, and fuel-efficiency, Ciaz is a luxurious car from Maruti Suzuki. It provides excellent mileage of around 20.28 kmpl. Available in two variants, diesel and petrol, overall performance is exceptional for both. It comes with child safety, dual airbags, co-passenger seat belt reminder and much more. The boot space won't be an issue as there is a capacity of 510 litres i.e. one can easily store 2-4 medium-sized bags. It offers eight beautiful colors to choose from. With its capacity of staying in triple-digit speed all day long, it can be called the best car in India within 10 Lakhs.

Ex-Showroom Price Starts From INR 8.19 Lakhs

• Honda City

Honda City is not only the most elegant looking car but also one of the best sedan cars in India below 10 Lakhs. It comes with automatic or manual transmission options and is available with 1.5-litre diesel or petrol engine. The car offers V, SV, ZX, VX variants and ZX variant includes 6 airbags that ensure the safety of the travelers. It has an electric sunroof, which is generally absent in most of the car models. Several other features like paddle shifters, LED headlamps are also present which helps this model to stand out from others.

Ex-Showroom Price Starts From INR 8.77 Lakhs

• Mahindra XUV500

Being the latest sensation in entry-level SUVs, Mahindra XUV has can easily be called the best car in India in 2018. This flagship car from Mahindra has unique features like the quilted seat, spacious interior, tilt steering, dual front airbags, electric sunroof, and ambient lights. It also comes with manual and automatic transmission. The 7-seater stands out because of its great performance. It has a road presence due to hulky design. In addition to this, a Blue Sense App is also present which helps to control the infotainment system and climate. It is suitable for off-road traveling ensuring the safety of the travelers.

Ex-Showroom Price Starts From INR 12.57 Lakhs

• Toyota Innova Crysta

Being a multi-purpose vehicle (MPV), Toyota Innova Crysta has an excellent engine that can manage rough roads and even off-roading. Its capabilities are unleashed over long drives on highways. The new engines introduced in this model are more powerful and offer great mileage up to 13.68 kmpl. It has the 8-way power-adjustable seat and makes the safety and security of the customers a topmost priority by adding 7 airbags. This one also comes in two variants, petrol and diesel and further manual and automatic. Overall, it is a great car with a splendid performance.

Ex-Showroom Price Starts From INR 14.65 Lakhs

• Ford Endeavour

A mammoth size SUV, Ford Endeavour comes with a powerful 3.2-litre engine, 7 comfortable seats, and 6-speed automatic transmission. It has a muscular appearance and casts quite a powerful road-image. Its efficient engine, up to 1996 cc subtly complements the model. Owing to its great suspension and efficiency on highways, it can surely be termed as one of the best cars for long journeys in India.

Ex-Showroom Price Starts From INR 26.33 Lakhs

These models make great options to choose from and not to forget, also compliments the owner of the car subtly. Bulky and muscular models are generally preferred for such long-distance and time-consuming trips. Safety measures like child lock, airbags, seat belts are necessities while buying any car to avoid any future adversities. Such models are equipped with shock absorbers but before buying any car model, thoroughly check out the features and other important information.

Conclusion

While you decide on buying a new car, you must also think about the best insurance option for the same in case you land in some difficulty. Adversities are unavoidable and may pose a much bigger hurdle if we don't take any actions to secure the future. With ICICI Lombard General Insurance  you have the option to create your custom car insurance policy with our list of add-on covers. Our comprehensive car insurance protects you fully against financial losses from accidents, theft, or natural disasters. Buy your car insurance online and be financially secure.

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.

Among the many components of car insurance, designating a nominee is a crucial yet often overlooked aspect. Timely choosing a nominee ensures that, in the unfortunate event of the policyholder's demise, the insurance benefits are transferred easily to a chosen individual. This article delves into the significance of a nominee in car insurance policies, the process of adding one, and the benefits thereof.

What does nominee mean in car insurance?

Well-planned insurance coverage for your car includes a well-thought decision regarding a suitable nominee. It ensures a smooth transfer of car ownership in case of the policyholder’s demise. Keeping this in mind, let us understand who a car insurance nominee is and what are his/her rights and duties.

Meaning of nominee in car insurance policies

While purchasing the car insurance online, you need to name a nominee along with other essential personal details. A nominee in car insurance serves a similar function as that of any other insurance policy or any other asset an individual holds.

Legally, in the case of an individual’s demise, the assets and any other property owned by him/her is passed on to the legal heir. When naming a nominee, such legality is executed and brought to force, making the named individual the legal heir and effecting policy transfer in the case of the unfortunate demise of the policyholder.

Naming a nominee also eliminates any chances of legal dispute if there are multiple legal heirs to the individual. For instance, if a person has two children, X and Y, both would be the legal heirs to his property. However, if he has named X as the nominee in his car insurance policy, in the case of the policyholder’s demise, any scope for ownership dispute is eliminated.

Now, one must also understand that the policy should be active while such policyholder is deceased for this to effect. The benefits mentioned under the coverage plan would be applicable and claimable by the nominee only if the policy was active during the policyholder’s demise.

Under circumstances where the car insurance nominee hasn’t been mentioned, the ownership of such policy passes on to the legal heir without dispute.

Nominee/legal heir to motor vehicle policy as per natural succession

In case a policyholder has mentioned a nominee to the coverage benefits of an active policy, the ownership is passed to the nominee of the deceased. However, for natural succession, the following relationships qualify to become legal heirs of the car insurance plan in the case of a policyholder’s demise.

1. Spouse

In case the policyholder has a spouse, he/she would be the immediate legal heir to the policy after the former’s demise. The car insurance policy would thus be transferred to the husband or wife under natural succession. If such a name has been specified in the car insurance policy documents as the nominee, the policy transfer is simplified.

2. Child

If a policyholder is a single parent, the ownership of such policy will be transferred to the child after the former’s demise as per natural succession. In case multiple children are involved, such transfer will be based on the policyholder’s legal heir details in the will or other similar processes. If a single child of multiple children is specified as the nominee, such transfer to the mentioned child will be indisputable.

How to add nominee to your car insurance?

Adding a nominee to your car insurance policy is a straightforward process:

1. During Policy Purchase or Renewal: Most insurers provide an option to nominate an individual at the time of purchasing or renewing car insurance online. You can specify the nominee's details in the application form.
2. Through Endorsement: If you wish to add or change a nominee during the policy term, you can do so by submitting an endorsement request to your insurer. This typically involves writing a letter or filling out a form with the new nominee's details.

It's advisable to review and update your nominee details periodically, especially after significant life events like marriage, childbirth, or the demise of a previously nominated individual.

Benefits of adding a nominee

Designating a nominee in your car insurance policy offers several advantages:

• Ensures Smooth Claim Settlement: In the event of the policyholder's death, the insurer can directly disburse the claim amount to the nominee, facilitating a hassle-free settlement process.
• Avoids Legal Complications: Having a nominee helps in sidestepping potential disputes among family members regarding the distribution of insurance benefits.
• Provides Financial Security: The nominee can utilise the insurance proceeds to manage immediate financial needs, such as medical expenses or loan repayments, ensuring financial stability during a challenging time.

Conclusion

It is best to make sure to name a car insurance nominee while purchasing the motor vehicle policy to eliminate any chances of hassles or disputes among natural heirs. Other parties to be contacted during policy transfer after such demise include the concerned RTO as well as the insurance provider. One can take the assistance of a lawyer for a more streamlined transfer process. It is also suggested for such a nominee to not drive the car if the policy has expired and buy a new coverage in his/her name for hassle-free coverage claims. Whether you have a third party car insurance policy or a comprehensive one, adding a nominee ensures a smooth transfer of benefits, giving you and your loved ones 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 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. 

The Indian automobile industry has witnessed some tectonic changes during the last few years. Some of these changes are increasing penetration of electric vehicles, innovative connectivity features in cars, digitalisation of

The most noteworthy change among these is the increasing adoption of electric vehicles (EVs). Despite the COVID-19 pandemic, EV manufacturers sold 5,32,485 units in India during the last two financial years. With the Government pushing for complete electric mobility and rising fuel prices, these figures will expand by 26% between 2021 and 2023.

So, if you are planning to buy a new car soon, you should start looking at the futuristic EV options. Almost all top automobile brands in India have started offering electric cars to their customers. You can select from a range of impressive options from some world-renowned car manufacturers.

What about car insurance?

As per the Motor Vehicles Act of 1988, all vehicles in India must be insured with a motor insurance policy; electric cars are not exempted from this rule. It means that you have to compulsorily buy car insurance for your electric vehicle to drive it on Indian roads. However, electric car insurance policies aren’t the same as regular car insurance plans.

Since electric cars are battery-powered and consist of a different engine, coverage offered by an electric car insurance policy is more customised. Also, the cost of car insurance for electric cars is higher as compared to the usual petrol and diesel cars.

Owning a car is a dream come true for many, for others it could be a much-needed asset—whatever is your reason for loving your car, make sure you secure it with the right car insurance policy. The Motor Vehicle Act, 1988 mandates third-party insurance for every car owner. However, a third-party policy offers only partial cover. While it covers third-party liabilities in case of a mishap, it will not protect you against any injury or damage to your car. Therefore, it is advised to secure your car and your finances with a comprehensive car insurance policy since it covers third-party liabilities as well as your own damage. A comprehensive car insurance policy can give you complete financial protection in the face of an unfortunate event.

What is the deductible in car insurance?

This is important. Remember, no insurance policy pays 100% of the claim amount since every plan comes with a deductible. A deductible is an amount you have to pay from your pocket as and when you make a claim. So, when an unfortunate event occurs, you pay a certain amount by yourself, and then the insurance company settles the remaining amount. For example, let’s say your car insurance policy has a fixed deductible of 5% and you make a cashless claim for Rs 50,000. In this scenario, once you make a claim, the insurer will ask you to pay the deductible, which will be Rs 2500 in this case. After you pay, the insurer will settle the remaining amount, which is Rs 47,500 directly with the garage.

In case of a reimbursement claim, you will have to pay the entire expenses to the garage from your pocket and the insurance company will reimburse the claim amount after deducting the deductible.

How are car insurance deductibles beneficial?

Car insurance deductible is beneficial to policyholders as it reduces your insurance premium amount considerably. The higher the deductible, the lower the premium. Therefore, many people opt for a higher deductible to reduce the car insurance premium.

Deductible is beneficial to the insurance company as it discourages the policyholder from making small claims.

There have been various predictions about the increase in motor insurance premiums in recent years. You must have scrolled through the websites of several insurers to check the price hikes, whether it was for comprehensive insurance or third-party coverage. Much to your anticipation, the Insurance Regulatory and Development Authority of India (IRDAI) has recently proposed amendments to third party car insurance pricing. The last revisions were made in June 2019, just before the onset of the pandemic.

The Ministry of Road Transport and Highways (MoRTH) and IRDAI’s latest proposal calls for a significant increase in third party car insurance premium. However, the car insurance price hike is kept to a minimum for private and commercial cars.

The proposals were made after reviewing the last 10 years' insurance claims and premiums data. The new rates will be effective starting 1^st April, 2022. 

What is third-party car insurance?

Third-party car insurance is the minimum insurance cover needed to drive a car in India. The policy covers the property loss and physical injury of a third party. Simply put, it is a pact between you and your insurer where the insurer agrees to indemnify you if you are sued or are found legally accountable for the death, injuries, or property damage caused to a third party.

In India, the rate of third party insurance is decided by the IRDAI and not by the insurance companies. The insurer is responsible for fixing the rate of standalone own damage insurance and comprehensive car insurance—own damage portion plus add-ons. The rates are set following a thorough evaluation of the claims paid out by various insurers over a period.

Let's go over the benefits of the third-party cover to understand why you should get it before the car insurance price increases.

Features of third-party liability cover

• Third-party legal cover is mandatory by law. 

• It compensates the third party for property damage caused by your car.

• If a third person is injured physically, the policy will cover their medical costs.

If a third person dies or becomes permanently disabled as a result of an accident involving your car, the policy will pay a lump sum amount.

So, how many times have you read the article stating that under the MV Act of 1988, car insurance is mandatory? Twice? Or, thrice a week? You may have insurance cover for your car but do you remember its expiry date? Avoid the last-minute rush to your insurance company’s branch for car insurance renewal, figuring out discounts, deals, and the process. In such situations, having a customer-oriented insurer can make life much easier for you. Renewing car insurance with ICICI Lombard comes with numerous advantages, sans any stress or hassles. Want to know more? Keep reading.

Features of ICICI lombard car insurance

ICICI Lombard’s four-wheeler insurance policy stands out due to its extensive features:

• Comprehensive Coverage: Protection against third-party liabilities, own damages, and natural or man-made disasters.
• Zero Depreciation Cover: Ensures you receive full claim value without factoring in depreciation.
• Cashless Repairs: Access to a variety of garages for seamless cashless repair services.
• 24x7 Roadside Assistance: Help is just a call away in case of emergencies like breakdowns, flat tyres, or battery failures.
• Instant Policy Issuance: With minimal paperwork, renew your policy online within minutes.

Benefits of ICICI lombard car insurance renewal online

Renewing your ICICI Lombard car insurance online is a game-changer. Here’s why:

1. Saves Time:

Do you usually take a day off only for car insurance renewal? Consider going on a movie date instead because, with ICICI Lombard, car insurance policy renewal takes just a few minutes. Here are the steps for instant car insurance renewal.

• Visit the ICICI car insurance renewal page.
• Enter your car's registration number and registered mobile number.
• Click on the 'Proceed' icon.
• Follow the instructions displayed on your laptop screen.

In case you find this method difficult, simply visit the link sent to your registered email address and mobile number.

2. Easy Customisation:

Did you forget to buy the add-on you wanted for your car the last time you bought a policy with ICICI Lombard? Do not forget it this time. With us, you can select from nine different car insurance add-on cover. All you have to do at renewal time is customize your policy with the add-on you think is best for your car. However, keep in mind that add-ons come with an additional policy premium and the calculation is based on the type of your car's policy cover. The different add-ons available at ICICI Lombard are:

• Roadside assistance cover
• Zero depreciation cover
• Consumable cover
• Garage cash cover
• NCB protection cover
• Engine protect plus
• Return to invoice cover
• Key protect cover
• Personal belonging cover

3. No Claim Bonus (NCB):

ICICI Lombard appreciates your safe driving through the policy year and rewards you with a No Claim Bonus for each claim-free year. When you opt for car insurance policy renewal within 90 days from its expiry day, you are eligible to retain your NCB. This way, you can easily lower your policy premium up to a maximum of 50%. To understand the NCB retention in a detailed manner, look at the table below.

4. Policy Switch:

Third-party liability insurance covers the legal liability of third party damage only and does not cover your car’s own damage. So, if you have this minimal cover for your car and want to increase the scope of your policy you must switch your policy. With us, you can easily change your policy at the time of car insurance policy renewal. If you have third party cover along with a standalone own damage policy, you can easily switch to a comprehensive car insurance policy by paying the necessary premium. There are no restrictions on switching the policy.

5. Secure and Transparent:

If you renew your coverage from or pay your premium to an unauthorised source, there is a high chance of fraud. At ICICI Lombard, we provide our customers with a secure payment gateway and ensure that their transactions are not vulnerable to fraud. Moreover, while renewing a car insurance policy with us, you don't get duped by any hidden clauses. The policyholder can access all insurance information with a single click and can proceed without any uncertainty about the car insurance renewal process.

6. Security:

Renewing a car insurance policy secures your drive in every possible manner. With our insurance cover, you don't need to worry about the financial obligations that may arise due to a mishap or third party legal liabilities. Plus, car insurance renewal helps you to drive around the city with confidence instead of being constantly preoccupied with the financial consequences of an accident.

Updated on - 09 Feb 2026

At every Indian petrol station, drivers get two options: regular petrol and the premium version marketed as power, extra or performance petrol. Both fuels come from the same crude oil base, but they differ in octane rating, detergent content, price and the way they interact with engines. Some manufacturers strongly recommend premium petrol for specific models, while most cars are optimised for normal fuel. Choosing correctly matters for cost, performance and long-term engine health.

In this blog, we explain and compare normal and power petrol.

What is power petrol?

Power petrol is a premium-grade fuel with a higher octane rating than standard petrol and often includes detergent additives. In India, premium variants such as HPCL Power (93 RON), IOCL XP95 (95 RON) and BPCL Speed 97 (97 RON) are available. Shell also sells V-Power, positioned as premium but without a disclosed octane figure. Higher octane fuels reduce knocking in high-compression engines and support smoother performance.

Advantages of using power petrol

Some of the significant benefits of using power petrol, especially for vehicles designed with high-performance engines, are:

1. Reduces engine knocking – It resists premature ignition, preventing engine knocking and protecting engine components.
2. Improves engine smoothness – It can enhance the overall operation of high-performance engines.
3. Reduces deposits in fuel injector and valve – Many premium fuels contain additives that help reduce carbon deposits on fuel injectors and intake valves, maintaining engine efficiency.
4. Slightly better fuel efficiency in compatible engines – In engines designed for high-octane fuel, power petrol can improve combustion efficiency, potentially offering better mileage.
5. Enhances performance – Vehicles with high-compression engines can benefit from improved acceleration and optimal power output.

For standard engines, the benefits of power petrol may be minimal. Always check your vehicle manufacturer’s fuel recommendations before using premium fuel.

Impact of power petrol on engine performance

The effect of premium petrol is not the same for every engine. For some vehicles, the difference is crucial, while for others it is negligible.

High-performance cars

Luxury sedans, turbocharged hatchbacks and sports bikes often require octane above 91 RON. Using normal petrol in these can cause noticeable knocking and reduced power.

Mass-market cars

Most Indian hatchbacks, SUVs and commuter bikes run optimally on 91 RON. For these, upgrading to premium does not produce significant gains in power or fuel economy.

Longevity of components

Engines running on power petrol may show fewer issues with clogged injectors, rough idling or valve deposits after years of usage compared to those always running on normal fuel.

Efficiency in hot climates

In high ambient temperatures common across India, the knocking risk increases. Higher octane fuels offer extra margin against knock during long summer drives.

Engine calibration differences

Engines of some cars sold in India are detuned versions of global models. While abroad, they may require 95 RON; In India, they are adapted for 91 RON. In such cases, power petrol may not add value.

When to use power petrol?

Premium petrol is not meant for all situations. It becomes important in specific contexts and conditions.

Cars with the manufacturer's requirement

Always use premium if the owner’s manual specifically states the use of high-octane petrol. Ignoring this can lead to warranty issues and engine damage.

High-altitude driving

At higher altitudes, thinner air affects combustion. Higher octane petrol reduces knocking risk when engines are pushed harder.

Turbocharged vehicles

Turbo engines compress air before combustion, raising cylinder pressure. These engines often benefit from or require higher octane fuels.

Long highway journeys

Continuous high-speed driving on expressways can cause knocking in certain engines. Premium fuel provides a safety margin.

Imported vehicles

Cars imported from countries where 95 RON is standard should be refuelled with premium petrol in India to match their design.

What is normal petrol?

Normal petrol, also known as regular unleaded petrol, is the standard fuel used in most petrol vehicles. It typically has an octane rating of 87–91, depending on regional standards. This fuel is suitable for everyday driving and offers a balance between performance and cost efficiency.

When to use normal petrol?

For most Indian drivers, regular 91 RON petrol is entirely sufficient. Below are clear cases where normal petrol is the sensible option.

Daily commuting

Short urban drives in commuter cars can go perfectly on standard petrol without extra cost.

Cars calibrated for 91 RON

Most Maruti, Hyundai, Tata and Mahindra models are engineered for normal petrol. Premium fuel does not enhance performance in these cases.

Older vehicles

Engines built before widespread premium fuel marketing in India are typically designed for 91 RON, and upgrading to premium offers no additional benefit.

Budget-conscious users

Given the price gap of ₹5–₹10 per litre, sticking with normal petrol saves thousands annually for high-mileage drivers.

Areas with limited availability

In small towns and rural regions where premium is hard to find, regular petrol ensures consistency and avoids switching between grades.

Power petrol vs normal petrol: Key differences

Here are the major differences between the two:

Cost comparison: Power petrol vs normal petrol

Fuel prices in India fluctuate weekly, but the difference between grades remains consistent. Power petrol is generally more expensive than normal one, with the exact difference varying by location and fuel brand. Filling a tank with power petrol costs noticeably more and the extra expense increases with larger fuel tanks, such as those in SUVs.

Environmental impact: Power petrol vs normal petrol

Normal and power petrols contribute to emissions, but small differences exist in how they perform. CO2 output per litre is nearly identical for both. The difference comes from combustion efficiency, which may be slightly better in engines tuned for premium fuel. Power petrol’s detergents prevent the build-up, and this lowers nitrogen oxides and particulate matter emissions.

Normal petrol in India is largely E10, reducing fossil carbon content. Many premium fuels are E5, which means lower ethanol but slightly higher fossil carbon share.

Both normal and premium fuels meet Bharat Stage VI emission standards, but actual results depend on the vehicle and its fuel calibration.

Common myths about power petrol debunked

Some of the common myths about power petrol are:

Myth 1: Power petrol increases mileage in every car

Fact: Mileage only improves in engines designed to adjust ignition timing with higher octane. For most commuter cars, there is no difference.

Myth 2: Premium petrol instantly improves engine health

Fact: Detergents clean fuel injectors and intake valves gradually. It cannot fix existing mechanical problems or major carbon deposits.

Myth 3: Using normal petrol in luxury cars saves money safely

Fact: Using fuel below the recommended octane risks knocking and can cause engine damage, negating savings.

Myth 4: Premium fuel has more energy

Fact: Octane rating measures resistance to knock, not energy content. Premium petrol does not inherently contain more energy.

Myth 5: All premium fuels are the same

Fact: Premium fuels vary by brand, as different oil companies include different additive packages.

Tips for choosing the right petrol for your vehicle

Follow these tips to get the right petrol for your vehicle:

Check the manufacturer’s recommendation

Always follow the minimum octane rating mentioned in the owner’s manual.

Match fuel with engine type

Turbocharged, high-compression and imported engines need premium petrol. Regular engines run best on normal petrol.

Consider long-term costs

Frequent premium fuel usage without need can cost thousands more annually without a performance benefit.

Use premium occasionally if useful

For cars with direct injection, occasional premium use can help reduce deposit build-up, even if 91 RON is the norm.

Choose reputable fuel stations

Quality of petrol matters. Stick to trusted outlets where fuel adulteration risks are lower.

Conclusion

Power petrol is not a universal solution. In India, it is essential for performance cars, imported vehicles and engines specifically calibrated for higher octane. For the majority of mass-market cars, normal petrol offers the best balance of cost and performance. The choice should always be guided by your vehicle’s manual, not marketing claims. Correct fuel selection protects the engine, saves money and ensures long-term reliability. Just as choosing the right fuel safeguards your engine, maintaining the right car insurance protects your vehicle against accidents, repairs and unexpected costs.

Get personalised car insurance advice and solutions by filling out the form on this page, so your vehicle is fully protected on every drive.

FAQs

1. Can I switch between normal and premium petrol?

 Yes, mixing is safe. The resulting fuel will have an average octane rating.

2. Will premium petrol improve mileage in my hatchback?

Unlikely. Most Indian hatchbacks are optimised for 91 RON and using premium petrol shows no efficiency gain.

3. Is premium petrol required for BS6 cars?

 Only specific turbocharged or imported BS6 cars demand 95 RON or higher.

4. What happens if I use 91 RON in a car that needs 95 RON?

Knocking, reduced performance and possible long-term engine wear may occur.

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 - 30 Dec 2025

Earlier, buying a car insurance policy and its renewal were a very cumbersome process. With the advent of technology, the whole procedure has become so much simpler. In fact, the majority of service providers offer the option of completing the entire buying and renewal of policies online to their customers. Even if your insurance expires, the company offers you a grace period, during which no additional charges are levied. But how long is that grace period?

This blog will cover what the grace period is, why it matters and how you can renew your four-wheeler insurance within this timeline.

What is the grace period in car insurance?

The grace period in car insurance is the additional time your insurance provider allows you to make the premium payment after the due date has passed. This is to ensure the policy doesn’t lapse. However, you cannot make any claims as the car is considered uninsured during the grace period. It is only after you renew the policy that you can leverage any benefit.

What is the duration of the grace period in car insurance?

There is no grace period after insurance expires under the law. It all depends on the insurance companies. The grace period for the insurance plan may vary from 15 days to 30 days, as per the terms and conditions of the policy issued by the insurance company. The customer must check the car insurance grace period at the time of buying the insurance policy.

Benefits of renewing car insurance within the grace period

There are several advantages of renewing your four-wheeler insurance within the grace period:

• No-claim bonus: By renewing on time, you safeguard your accumulated no-claim bonus. This means that any bonus earned from claim-free years will not be lost, allowing you to enjoy lower premiums in the future.
• Reduced premium rate: Timely renewal helps avoid an increase in your insurance premium. Insurance companies typically offer the same premium rate during the grace period.
• Policy remains active: You cannot make a claim, but the policy remains active. That’s why renewing it on time is important for financial protection at the time of an accident or theft.

What are the consequences of not renewing the car insurance before expiry?

Under the Motor Vehicles Act, driving cars on Indian roads without third-party car insurance is illegal. Such action may invite the imposition of penalties and fines. It is advisable to renew your car insurance before it expires. Besides the legal drawbacks, there are several other disadvantages of not renewing your car insurance policy on time:

1. Penalties by the insurance provider

The practice usually followed by the insurance companies is that they will charge some sort of a late payment fee if the delay is reasonable, say, within one month of the car insurance grace period.

2. Cancellation of policy

If the delay in renewing the car insurance is excessive, then the possibility is that the insurance company may cancel the policy itself. After the cancellation of the car insurance policy by the insurance company, no claims from the car owner will be acceptable. This situation may leave the car owner exposed to legal and financial liabilities. The car owner should also not drive the car until the renewal process is complete.

3. Loss of no-claim bonus (NCB)

Many insurance companies offer no-claim bonus car insurance for safe driving. This is a discount offered to customers at the time of renewal of the car insurance policy. But this bonus or discount is available to the car owner only up to ninety days from the date of expiry of your car insurance.

4. Car inspection

Some insurance companies may conduct an inspection of the vehicle if the renewal is not made within the grace period. Many insurance companies offer relaxation from such stipulations. However, it is mandatory to carry out an inspection of the vehicle if the insurance renewal is not done within ninety days of the date of expiry.

5. No third-party coverage

If the car owner is involved in any car accident after the expiry of the four-wheeler insurance but before its renewal, then there is a possibility of the owner being entangled in third-party legal hassles.

Pre-renewal checklist

Remember to go through this checklist at the time of policy renewal:

• The Insured Declared Value or IDV in car insurance has to be re-evaluated against the premium charged. In this way, you will pay the best price for the benefits enjoyed through the insurance coverage.
• The claims ratio of the current insurance company must be checked at the time of renewal.
• The car owner must ensure that service centres with the cashless facility are available near their locality.
• The car owner must check the discounts available for the payments he or she has to make over and above the claims made to the insurance company.

Please don’t wait for the grace period, but get your renewal of the insurance policy done before the expiry date and enjoy a stress-free drive.

How the car insurance grace period affects your no-claim bonus (NCB)

A no-claim bonus is a reward offered when the insurance holder doesn’t file any claims during the policy year. During the grace period, the NCB in car insurance is still valid. However, you cannot submit a claim as your policy is on hold. Once you renew your four-wheeler insurance, the NCB kicks back in. Just remember to renew your insurance policy within 90 days of expiry.

Importance of maintaining continuous car insurance coverage

Car insurance is not only a legal mandate, but also a step towards a safer future. It offers you financial protection in the event of theft, accident or natural calamity. In case of a lack of coverage, you have to pay for your own and third-party damage liabilities from your pocket. That’s why it is advisable to continue your car insurance coverage, even if you don’t claim it for a long time.

Conclusion

Understanding and using the grace period for car insurance renewal is important to maintain continued coverage for your vehicle. Timely renewal protects you from legal and financial consequences. While a grace period is a last resort that provides a safety net in case of missed deadlines, renewing the policy long before its expiration date is advisable. Stay proactive and renew your car insurance on time. If you need guidance related to different plans, like third-party or comprehensive car insurance plans, fill out the form provided on this page.

FAQs

1. Is there a government law regarding a grace period in car insurance?

No, there is no specific government law mandating a grace period for car insurance. It is provided at the discretion of the insurance company.

2. Will I lose my no-claim bonus (NCB) if my car insurance policy expires?

The policyholder can continue to benefit from the NCB during the grace period given by the insurance provider, beyond which all the benefits are lost.

3. Can I switch my insurance provider if my car insurance has expired?

A car owner can buy insurance coverage from one insurance company and renew with another. If the owner has not been satisfied with the benefits and services of the insurance company, the best time for the review of that policy is just before the expiry of the current insurance policy.

4. What is the grace period for an insurance policy on a new and used car?

There is no difference between the grace period for a new and a used car. The difference in this additional time depends on the terms of the policy and the insurance provider.

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.

Your comprehensive car insurance would be able to cover repairs, personal insurance as well as third-party car insurance. However, is your comprehensive car insurance truly comprehensive? In all probability, the consumable parts of your four-wheeler wouldn’t be covered by it. Therefore including the coverage consumables in the car insurance policy would be required to cover the consumable parts of your vehicle.

What is Consumables in Car Insurance?

Consumables are those commodities that have a specific use for a limited period. Once these items are used, they may not be used again in the future. These items are required to be replaced regularly due to wear and tear. Some examples of such items are engine oil, ball bearings, nuts, bolts, washers, brake oil, screws, grease, AC refrigerant etc.

You must have realised by now that the list of consumables is a long one. Each individual item may seem to be of little importance but they all are integral to the functioning of a car.

Benefits of Consumables Cover in Car Insurance

Adding consumables cover to your car insurance has several benefits:

1. Financial Protection: By compensating for the cost of repairing or replacing the consumables, this cover reduces out-of-pocket expenses.
2. Peace of Mind: It eliminates the worry about unforeseen costs of repairs after an accident.
3. Extensive Coverage: It complements the comprehensive four-wheeler insurance, ensuring that all aspects of repair are covered.

Coverage Under Consumables Add-on in Car Insurance

Your comprehensive car insurance policy wouldn’t provide cover for the cost of consumables. Therefore you would have to pay from your pocket for replacing the consumables at the time of claims. However, a consumable cover is an add-on cover that will pay the cost of consumables in case of replacing or refiling it due to an accident.

What Are the Inclusions of a Consumables Cover?

A consumable cover would cover the following:

• Engine oil
• Gearbox oil
• Nuts and bolts
• Grease, Washers, Oil Filters, Lubricants
• Power steering oil,
• AC gas oil
• Radiator coolant and all similar items except fuel

What Are the Exclusions of Consumables Cover?

Consumables cover won’t compensate for the damages caused under the following circumstances -

• Driving without a valid licence
• Driving under the influence of alcohol or drugs
• Driving a private vehicle for commercial purposes
• Any mechanical or electrical breakdown
• You delayed informing the insurance company
• Wear and tear of the vehicle parts

Buying Consumables Cover in Car Insurance: Things to Know

One can file a claim under this add-on cover only if it is accepted under the ‘own damage’ section of one’s comprehensive car insurance policy. This would mean that the cost of consumables in car insurance of a third-party vehicle isn’t eligible for a claim.

For one’s claim to be valid, the car consumables have to be repaired within three days from the date of the accident. Therefore, one must immediately inform the insurer once the accident takes place.

This add-on is usually valid for cars that aren’t older than 5 years.

Why Buy a Consumables Cover in Car Insurance?

Imagine that you were going on a drive.

Unfortunately, your car met with an accident and needs repairs. The cost of the repairs is worth Rs 15,000. The ‘own damage’ component of the comprehensive car insurance policy that you own covers repairs worth Rs 13,000. The remaining Rs 2,000 needs to be paid for repairing or refiling various consumables such as engine oil, nuts, and bolts.

If you have a consumable cover, the entire bill of Rs 15,000 would be covered, and you wouldn’t need to spend a rupee from your pocket. Therefore, a consumable add-on augments your comprehensive car insurance policy.

How to File a Claim for Consumables Cover in Car Insurance?

Firstly, you must submit the receipts and bills charged for repairs. It is preferable that the repairs are made in a garage which is a part of your insurer’s network. If you get your car repaired at a non-network garage or don’t inform the insurer beforehand, then it is possible that your claim might be denied.

You need not worry about the policy or car details as your insurer would already have them.

What Are the Documents Required for the Consumables Cover Claim?

To file a claim on car insurance with consumables cover, make sure to have these documents with you-

1. Receipts and bills of damage repair
2. Driver’s licence
3. Car insurance policy documents
4. The Registration Certificate or RC of the vehicle

FAQs

1. Who should buy a consumables add-on cover?

People looking to reduce the cost of small damage repairs and replacements of the consumables can go for this add-on cover.

2. Will consumable cover cost extra?

Yes, the cost of consumables in four-wheeler insurance is extra. This is because it isn’t a part of a comprehensive car insurance policy. Also, it is important to note that the consumable add-on cover would differ from one car model to another.

3. How to purchase consumables cover in car insurance?

You can purchase consumables cover online or offline from your insurance provider.

4. Will consumables cover reimburse me for routine wear and tear?

No, routine damage repair costs are not covered by the consumables add-on.

5. Can I purchase consumables cover for commercial vehicles?

Yes, consumables cover can be purchased for commercial vehicles such as tourist buses and cabs.

Conclusion

Consumables cover is an add-on available with four-wheeler insurance policy and covers the repair and replacement cost of regularly consumed vehicle parts. Though optional, it is useful for protecting the owner against unforeseen expenses. Before purchasing any add-on, consider your needs and consult your insurance provider to make the best decision for your vehicle and your financial health. 

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

Buying a car is a significant investment, and often, people choose to finance it through loans or other credit options. When a car is financed, the lender typically has a legal right over the vehicle until the loan is fully repaid. This legal right is known as hypothecation.

Understanding hypothecation is important, especially when dealing with car insurance, including third-party car insurance. This blog will explain what hypothecation means in the context of car insurance, why it matters and how to remove it once your loan is settled.

Hypothecation in car insurance explained

Hypothecation is a legal agreement where a borrower pledges an asset, such as a car, as security for a loan. However, the borrower retains possession and use of the asset during the loan period. In the case of car loans, the vehicle itself is hypothecated to the lender, usually a bank or a financial institution, until the borrower repays the entire loan amount.

When you purchase a car on loan, the hypothecation clause is added to the car’s registration documents. This means the lender’s name is recorded as a “hypothecated party” on the vehicle registration certificate (VRC). Essentially, this gives the lender a legal claim over the car. If the borrower isn't able to repay the loan, the lender might take possession of the vehicle.

In terms of car insurance, hypothecation is significant because the lender’s interest must be protected until the loan is cleared.

Hypothecation impacts car insurance in a few key ways. When a car is hypothecated, the lender requires proof that the vehicle is adequately insured to protect their interest. This means that the insurance policy must cover any potential loss or damage to the car, so the lender does not suffer financial loss if the car is damaged or stolen.

Third-party car insurance covers damage caused by your vehicle to other people but not damage to your own car. However, when a car is under hypothecation, lenders often insist on a more comprehensive insurance cover to protect the financed asset fully.

Points to note about hypothecation

There are several important points to keep in mind regarding hypothecation in car insurance:

• The Registration Certificate (RC) that you receive from the Regional Transport Office (RTO) when getting a newly purchased car registered in your name, will carry a note stating that the car is hypothecated in favour of the bank which has given the car loan.
• Your car insurance policy will also be in favour of the bank which has sanctioned your car loan.
• Once your car loan is fully paid up you need to take a couple of important steps to get the hypothecation removed.
• Obtain an NOC (No Objection Certificate) and Form 35 from the lending bank and submit it to the car insurance company.
• The insurance company will revise their records and change the car insurance to reflect your name as the owner. This removes hypothecation from your car insurance.
• Next submit the bank NOC along with the updated car insurance papers to the RTO where you got your car registered and get the hypothecation cancelled from the Registration Certificate.
• You will be issued a fresh RC and then you can be confident that you truly own your car.

Importance of removing hypothecation

Removing hypothecation is an important step once you have fully repaid your car loan. Until the hypothecation is removed, the lender retains a legal interest in your vehicle. Here are some reasons why removing hypothecation matters:

• Complete ownership: Removal of hypothecation means you gain full ownership rights over your vehicle, without any legal claim from the lender.
• Ease of sale or transfer: You cannot sell or transfer ownership of your car without the lender’s consent. Removing hypothecation allows you to transfer or sell the vehicle freely.
• Insurance flexibility: Without hypothecation, you can choose any type of car insurance policy, including third-party car insurance or comprehensive insurance, without the lender’s restrictions.
• Peace of mind: It confirms that your loan obligations are complete and there are no pending financial claims by the lender on your vehicle.

Documents required to remove hypothecation

The process to remove hypothecation requires certain documents, which vary slightly depending on the lending institution and the region. Typically, you will need the following:

• No Objection Certificate (NOC): This is issued by the lender after full loan repayment. It states that the lender has no objection to removing the hypothecation.
• Loan closure letter: A letter from the lender confirming that the loan is fully repaid.
• Original Registration Certificate (RC) book: The RC book contains the vehicle’s registration details. It will have the hypothecation details marked, which need to be updated.
• Form 35 or equivalent: This is an application form submitted to the Regional Transport Office (RTO) or equivalent authority for the removal of hypothecation.
• Insurance policy document: Copy of your current car insurance policy, showing coverage.
• Identity proof and address proof: Documents verifying the owner’s identity and address may also be required.

Once you submit these documents, the hypothecation entry will be removed from your vehicle registration records. A new RC without the hypothecation details will be issued.

Conclusion

Hypothecation in car insurance is a crucial concept to understand if you have financed your vehicle through a loan. It represents the lender’s legal interest in your car until the loan is fully repaid. That said, while understanding hypothecation is important, it’s equally essential to invest in the right car insurance. Beyond fulfilling legal obligations, insurance provides a financial safety net in case of unforeseen events like accidents, theft, natural disasters or vandalism. A comprehensive car insurance policy typically covers damages to your vehicle, third-party liabilities, personal accident cover and even legal expenses in some cases.

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.

Toyota Innova Crysta has become a household name ever since it launched in May 2016. Even before the launch of Crysta, Toyota Innova has had its fair share of capturing the market of MUVs.  Even though it faced tough competition from the market, the Toyota Innova Crysta has successfully maintained its status.

The Innova Crysta has regularly maintained its high selling status and outsold even cheaper models in the same segment. Another important factor about the Toyota Innova Crysta is its high resale value which attracts a lot of first time and used car buyers. No matter if you have a old car or a new car, always make sure to protect it with a car insurance policy.

Here are some of the factors because of which the Innova Crysta has become popular:

Level of comfort

Toyota has made sure that the Innova Crysta scores really high on the comfort quotient. It has acres of leg-room and headroom in all the rows, and a high seating position and a well laid cabin. The third row is very spacious as it has been designed to accommodate two to three adults. There is both 7 seater and 8 seater options available for this MUV. In the 7 seater variants, the centre row gets captain seats. The front passenger seat can be adjusted from the middle row captain seat and the driver seat is completely electronically adjustable.

The Innova Crysta can take pride in its individual AC control, comfort and space, unlike many MUVs. The luggage space can also be increased by folding the last row if the need arises.

Look and design

Toyota has certainly put in a lot of effort in designing the look of the Innova Crysta. This MUV has an indestructible build quality and extremely good design. Some features of the MUV include large sweptback projector headlamps along with LED daytime running lights, hexagonal front grille, three air-bags, middle read head rest, seat belt warning, brake assistant, speed sensing door lock, driver arm rest, etc. The Innova Crysta also has two pieces split taillights along with a rear spoiler.

Reliability and safety

Toyota Innova Crysta adheres to the top of the line safety features. This MUV comes with ABS and airbags as part of its standard safety feature. There are 7 airbags in the top end variant that includes the driver, front passenger, driver knee, front side and curtain shield. Other safety features of the car include electronic stability programs, hill hold control, hill descent control, etc.

Easy maintenance and service

The spare parts of the Toyota Innova Crysta come at a very affordable rate. Hence, this MUV is comparatively easy to maintain. The Innova is known to have excellent build quality. Hence, the problem of malfunction and replacement is quite rare. Generally, Toyota cars are known to barely have any issues. Along with this, there is a widespread network of Toyota service centres across the country that strives to provide complete satisfaction to their customers. Regularly servicing the car on time can help the car to run as smoothly as possible. All these aspects combined together increases the resale value of the MUV.

Performance: The Toyota Innova Crysta offers two diesel options to its customers.

The Toyota Innova Crysta engines are known for its reliability. It is also known for its fuel efficiency and good performance. Innova Crysta is known for its refined, powerful, fuel-efficient status.

Resale value

One of the reasons for the popularity of Innova Crysta is that it has a great resale value. With features like the ones mentioned above, the value of the car depreciates slowly.

Brand image

Toyota Innova has always had a good image in the market since its launch and has been a household name. Thanks to its popularity status people were eagerly waiting for the launch of the new Innova Crysta in 2016. Considering the above factors, Innova remained true to its promise and maintained its brand value.

Toyota Innova Crysta is undoubtedly one of the top selling cars in the country. Since they have never compromised on their offerings, this is helped them maintain their popularity in this MUV segment.

Protecting your Innova Crysta with car insurance

It is important to have a car insurance policy, including third party car insurance, to ensure that your Innova Crysta is protected in case of an accident:

1. Comprehensive Car Insurance: This plan extends coverage to include damages to your own vehicle because of accidents, theft, natural calamities and man-made disasters. It also encompasses third-party liabilities and offers personal accident cover, ensuring extensive protection.
2. Third Party Car Insurance: This basic policy covers damages or injuries inflicted on third parties. While it's the minimum legal requirement, it doesn't cover damages to your own vehicle.

You can purchase car insurance online through simple steps. Most insurers provide the option of comparing and customising plans according to your needs. Select the add-ons and coverage that you require and save time and resources while also protecting the future of your favourite vehicle.

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 - 19 Jan 2026

Understanding the details of your car insurance policy can make a real difference during claims. One important feature that often gets overlooked is the Return to Invoice (RTI) cover. This add-on can help you recover the full invoice value of your car if it is stolen or damaged beyond repair.

RTI can make you get the original purchase price, including taxation and registration costs. For new car owners, it provides peace of mind knowing that even in the worst-case scenario, you can recover the amount you paid for your vehicle.

What is RTI in car insurance?

RTI in car insurance is an optional add-on cover that can be purchased with the plan. This offer is only available for vehicles that are new or less than five years old. It bridges the gap between your vehicle’s Insured Declared Value (IDV) and its original invoice price, making you receive the full invoice amount.

It’s designed to protect you from the financial impact of depreciation. Without RTI, insurers pay only the current market value of your car at the time of loss. With RTI, however, you get the amount you originally paid.

Benefits of RTI add-on cover

The Return to Invoice add-on offers several strong advantages that go beyond the protection provided by a standard car insurance policy:

• Full on-road price payout: Ensures you get back the complete amount spent on purchasing the car, including taxes and registration fees.
• No impact of depreciation: RTI bridges the gap between the current market value and the original purchase price, which is especially helpful for new cars that depreciate quickly.
• Easy vehicle replacement: The higher payout enables you to buy the same make and model again without arranging additional funds.
• Loan protection: For financed vehicles, RTI helps clear outstanding EMIs, preventing financial strain when the car is stolen or declared a total loss.
• Maintains financial stability: Helps preserve resale value and protects you from unexpected expenses after a severe loss.
• Greater peace of mind: Ensures your investment is fully protected, allowing you to drive confidently without worrying about depreciation or major incidents.

How does Return to Invoice cover work?

Having the RTI option is an investment that can help safeguard you, especially when financial liabilities are high.

For instance, if your car’s IDV is ₹8 lakh but the original invoice value was ₹10 lakh, the RTI add-on ensures you receive ₹10 lakh. This helps you replace your vehicle with the same model without any financial burden.

To process an RTI claim, you’ll need to submit the original purchase invoice, registration certificate, FIR (in case of theft) and claim form. Once verified, the insurer settles the claim based on the invoice value.

RTI works best when your car is less than three years old, as most insurers restrict this cover to newer vehicles where depreciation has a greater financial impact.

When is the Return to Invoice cover applicable?

There are some general situations where the RTI cover is applicable without question.

The Return to Invoice cover applies when your car is stolen and remains unrecovered after investigation. In such cases, you can raise a claim to receive the full invoice value instead of the depreciated amount.

It is also valid when your car suffers a total loss due to a severe accident that leaves it beyond repair. The insurer compensates you based on the original on-road price, helping you replace the vehicle without bearing heavy expenses.

RTI also comes into effect when your car is damaged beyond recovery due to natural disasters such as floods, earthquakes or landslides. Likewise, if your vehicle is destroyed by fire or an explosion, you are eligible for a full payout under this cover.

Note: RTI terms vary between insurers. Always check your policy wordings to confirm specific inclusions, exclusions and claim conditions before relying on the cover.

When is the RTI cover most useful?

Return to Invoice (RTI) cover is most beneficial for those who own a new or high-value vehicle. RTI is especially useful during the first few years of ownership when depreciation is steep and the difference between the car’s purchase price and market value is highest. In such cases, standard insurance only pays the depreciated Insured Declared Value (IDV), while RTI ensures you get back the full on-road price, including taxes and registration.

For luxury cars and high-end vehicles, the cover offers even greater value as the gap between the invoice price and depreciated value can be substantial. Similarly, for financed vehicles, RTI helps clear any outstanding loan, saving you from paying for a car you no longer own.

It’s also a practical choice for people living in theft-prone or disaster-prone areas. In such regions, RTI provides much-needed peace of mind by covering losses from theft, fire or natural disasters.

When is the RTI cover not applicable?

Return to Invoice (RTI) cover comes with specific conditions under which it cannot be used. Understanding these exclusions helps you know exactly when the cover applies and when it doesn’t.

RTI is not valid for minor repairs or partial losses. If your car suffers minor damage like scratches or dents that can be repaired, the insurer will settle the claim under a standard own-damage policy, not through RTI.

It also doesn’t apply to older vehicles. Most insurers restrict RTI to cars up to three to five years old, as the depreciation gap becomes too large beyond this period. Vehicles insured only under a third-party policy are also excluded, since RTI is an add-on available only with comprehensive coverage.

If a loss occurs due to negligence, such as driving under the influence or using the vehicle for unauthorised purposes, the claim will not be honoured. If your vehicle is modified beyond approval or used outside the permitted region, the RTI benefit may be voided.

Note: Exclusions differ across insurers. Review your policy wordings carefully to understand the specific conditions under which your RTI cover may not apply.

How to calculate RTI

RTI in car insurance is a beneficial cover, and it is simple to calculate.

For example, if your car’s on-road price at the time of purchase was ₹12 lakh and its Insured Declared Value (IDV) after two years is ₹9 lakh, the RTI cover bridges this ₹3 lakh gap. In case of total loss or theft, you would receive the original ₹12 lakh instead of the depreciated IDV.

The actual claim amount depends on the car’s invoice value, as recorded by the insurer. Some insurers may also include the cost of accessories or extended warranties if they were part of the original invoice. However, depreciation, voluntary deductibles or unpaid EMIs are not factored into the payout.

How much does Return to Invoice cost?

The cost of an RTI add-on varies based on:

• The car’s make and model.
• The insurer’s premium structure.

Generally, the RTI cost is approximately 10% more than a comprehensive car insurance plan. Remember that insurance providers offer RTI as an add-on for vehicles until they reach a predefined age limit.

Who should opt for a Return to Invoice protection cover?

RTI is particularly beneficial for:

• New car owners: Protects the significant investment made in a new vehicle.
• Vehicles in high-theft areas: Essential for residents owning cars in regions prone to vehicle theft.
• Cars in calamity-prone zones: Provides financial security to individuals owning cars in areas susceptible to natural disasters.
• Expensive cars: Ideal for luxury and high-value vehicles where depreciation is steep.
• Financed car owners: Helps clear outstanding loan amounts in case of total loss or theft.

Validity of RTI

Since the add-on comes with a limited shelf life, you cannot bank on it forever. Usually, after some of your policy renewals in the first few years, your insurance provider will withdraw this benefit.

This is because paying the ‘on-road’ price for an aged vehicle will convert into a financial loss for the insurance provider. The value will, of course, be more than the current market price of the car, especially if the vehicle has experienced significant wear and tear over the years.

That said, when you do raise a claim with RTI, the insurer is legally bound to pay the invoice cover in full. There are really no loopholes for evasion of any one of the charges, including one-road price, registration costs, road tax, dealer’s handling, etc., that can be bypassed in any way.

They may also offer compensation of a specific amount, which is in exclusion to the car’s showroom price as mentioned in the original invoice.

Which of the add-on covers is better: ZERO Depreciation or RTI?

Both Zero Depreciation and Return to Invoice (RTI) cover offers valuable protection, but they serve different purposes. Zero Depreciation covers the full cost of replacing damaged car parts during repairs without factoring in depreciation. It’s ideal for minor accidents and repair claims, as it ensures you do not pay for the natural wear and tear of car parts.

RTI cover, on the other hand, applies only in cases of total loss or theft. It compensates you with the car’s original on-road price, including taxes and registration costs. This makes it more suitable for newer vehicles, high-value cars or those financed through loans, where a complete loss could lead to major financial stress.

If you’ve bought a new car, combining both add-ons in your four-wheeler insurance gives the most comprehensive protection. Zero Depreciation shields you from repair costs, while RTI ensures you recover the full invoice value if your car is stolen or beyond repair.

Things to remember about RTI

Keep these key points in mind to understand how Return to Invoice cover works and when it applies:

• RTI applies only to total loss or theft: The RTI in car insurance’s meaning is that it is only available when your vehicle is declared a total loss or stolen. It cannot be used for minor damages or partial repairs.
• Limited to newer vehicles: Most insurers offer RTI only for cars up to five years old, as the depreciation gap becomes too large after this period. Always check your vehicle’s age eligibility before opting for the add-on.
• Slightly higher premiums: RTI comes with a higher premium than standard cover, but the added cost is small compared to the complete protection it offers in severe loss situations. Confirm that all relevant charges are included in the RTI payout when buying or renewing your policy.
• Keep documents safe: Your original purchase invoice and related paperwork are required to validate an RTI claim, so store them securely.

Conclusion

Now that you have read about what Return to Invoice is in car insurance, it becomes clear that this add-on serves as a valuable layer of financial protection against major losses. If you have recently purchased a car or are planning to buy one soon, adding RTI to your insurance plan can help you safeguard your investment from risks like theft or total damage. It ensures you receive the full on-road value of your vehicle when you need it the most. You can also fill out the form on this page to receive personalised guidance and choose the right car insurance cover for your needs.

FAQs

1. Can one buy RTI cover for an old car?

No, most insurers offer RTI only for cars up to 3–5 years old. Beyond that, the depreciation gap becomes too large, and insurers may limit coverage to IDV-based payouts instead.

2. Does RTI cover accessories or modifications?

Usually, RTI covers only the standard components included in the car’s original invoice. Any aftermarket accessories or modifications need to be declared and insured separately under add-on coverage.

3. Will one get the RTI benefit if the car is stolen but later recovered in damaged condition?

If the insurer has already settled the claim under RTI and paid the invoice amount, ownership of the recovered vehicle shifts to the insurer. If it’s recovered before settlement, a reassessment will be done based on the extent of 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.

Car insurance works to cover your precious car from suffering any damages that could be caused by any kind of mishap or untoward situation such as an accident, floods, earthquake, fire, riots or any other natural calamity or man-made disaster, as well as a complete loss in case your car gets stolen. Vehicle insurance also protects you from damages or loss caused by your vehicle to a third-party. 

When you purchase vehicle insurance you naturally want o get the best possible protection for your car. One of the ways to ensure this is by having a zero depreciation cover in your car insurance policy. Zero depreciation cover is an important and beneficial add-on feature and one you should definitely include when buying car insurance.  

This article will act as complete guide to zero depreciation by covering its various aspects and how it affects your car insurance policy.

Understanding vehicle depreciation and zero depreciation

Depreciation means the loss of value of a vehicle over time, in this case your car particularly if you have bought a new car. This loss of value due to usage and normal wear and tear actually starts from the moment that you brand new car leaves the showroom. All insurance companies take into account the depreciation of the vehicle while calculating the policy premium and at the time of settling a claim.

The table below gives you an at-a-glance snapshot to understand how the loss in value or depreciation happens over time as your car gets older.

Depreciation Schedule

 Zero depreciation cover in car insurance is offered as an add-on cover when you buy a comprehensive car insurance policy. Having a zero depreciation cover enables you to minimise the effects of vehicle depreciation.

How zero depreciation works

Zero depreciation add-on cover, also called nil depreciation or bumper to bumper car insurance, takes care of the loss in value of your car due to wear and tear and gives you better car insurance coverage.

Suppose your car gets damaged in an accident and the garage or workshop informs you that certain parts are beyond repair and will need to be replaced completely. In such a situation, if you have a zero or nil depreciation add-on cover in your comprehensive car insurance policy, it will save you from paying from your own pocket for the repair and part replacement expenses of your car which could amount to quite a bit. The insurance company will pay 100% of the expenses with nil or zero amount deduction for part depreciation.

If you do not have zero depreciation car insurance cover, the insurance company will pay only partly for the repair and replacement of depreciable parts while settling your claim. The rest of the cost will have to borne by you.

Here is how your car parts are affected by depreciation. These are the depreciation rates set by the insurance regulator IRDAI.

What is not covered in zero dep?

While zero depreciation in four wheeler insurance provides extensive coverage, it does not cover:

• Routine wear and tear of vehicle parts
• Mechanical or electrical breakdowns
• Damage due to driving under the influence of alcohol or drugs
• Unauthorised vehicle modifications
• Tyre and battery replacement (unless damaged in an accident)

Benefit of zero depreciation

It is definitely worth paying the extra amount for getting a zero depreciation add-on cover with your comprehensive car insurance plan because it completely justifies the slightly higher premium charged by your insurer in return for the following benefits. These are the benefits you get with zero depreciation cover:

• Ensures that the insurance company fully covers the cost of repair and replacement of vehicle parts such as fibre glass components, rubber, nylon / plastic parts, battery, tyres and tubes, metal and glass parts, without deducting depreciation.
• The policyholder does not need to pay anything extra at the time of raising a claim.
• Gives an extra layer of protection for your brand new and expensive car
• Adds more value than buying standard car insurance

In a way if you look at it, including zero depreciation cover in your comprehensive car insurance policy, makes your car an ageless beauty since the insurer will not take the car’s age into consideration when processing your claim for damages.

Zero dep vs comprehensive cover

How to get zero depreciation cover

You can get zero depreciation cover at the time of purchasing a new comprehensive car insurance policy or you can apply for it when renewing your current policy. The validity of a zero depreciation add-on cover is for a year after which you will need to get it renewed.  

Conclusion

Zero depreciation car insurance is a valuable add-on that ensures complete financial protection against repair costs. While it comes at a slightly higher premium, the benefits far outweigh the costs, especially for new car owners. If you want comprehensive protection without depreciation deductions, opting for zero depreciation cover is a smart decision.

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.