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. 

Driving in India requires adherence to specific legal requirements, including carrying mandatory documents to ensure compliance with traffic laws and to safeguard against potential penalties. This blog outlines the essential documents every driver must have, ways to keep them secure, the consequences of non-compliance, methods for digital storage, and addresses frequently asked questions.

List of mandatory documents you must have

If you are driving on public roads in India, you should always carry the documents listed below. Not having any of these on your person can lead to heavy fines.

Registration certificate

This document acts as proof that you have registered your vehicle with a regional transport office. When you get a new car, you need to apply for registration at the regional transport office within 7 days of the purchase. A registration certificate is valid for 15 years, and can be renewed for a period of 5 years. The Motor Vehicles Act, 1988 makes having a registration certificate mandatory for all motor vehicles plying on Indian roads.

PUC Certificate

A pollution under control certificate proves that your vehicle meets the emission requirements defined for motor vehicles on Indian roads. If your vehicle does not meet the pollution control norms, it is not allowed to be driven on Indian roads. To get a PUC certificate, get your car tested at any of the authorised testing centres. You could find these at most petrol pumps.

Driving license

The Motor Vehicle Act also makes having a driving license mandatory for all driving a motor vehicle in India. You cannot get a permanent driving license on your first application itself. You would be issued a learner’s license to begin with, after a month of this you will have to appear for a driving test at an RTO. The license is issued only if you pass the driving test. Remember to carry it on your vehicle at all times. Driving license is also accepted as an identity proof by various organizations.

Insurance policy

All vehicles on Indian roads must be covered by at least a third-party car insurance. Further, a personal accident cover of at least Rs 15 lakh is a must for all driving on Indian roads. That said, it is advisable to get comprehensive car insurance for complete protection from any losses that can arise from an accident or damage to your car. You should always carry the certificate of insurance in your vehicle. The actual policy can be stored elsewhere.

Any other required permits

If you are driving a vehicle for commercial purpose, you should carry all required permits in your car as well. You may also need to have a certificate of fitness showing that the vehicle is fit to ride on public roads.

It a police official pulls you over any time, you should be able to provide the documents listed above. If you are missing any, you could not only face heavy fines but your vehicle may also be confiscated.

How to keep your documents handy and safe?

• Physical Storage: Keep all original documents in a waterproof folder within your vehicle's glove compartment to protect them from damage.
• Digital Copies: Utilise government-approved apps like DigiLocker and mParivahan to store digital versions of your documents. These digital copies are legally recognised and can be presented during inspections.
• Regular Updates: Set reminders to renew documents like the PUC certificate and insurance policy before they expire to maintain continuous compliance.
• Backup Copies: Maintain scanned copies of all essential documents in secure cloud storage platforms, ensuring access if loss or damage to physical copies.

Fines and penalties for not carrying required documents

Non-compliance with mandatory documentation can result in significant fines under the 1988 Motor Vehicles Act:

• Driving Licence: Absence of a valid driving licence can lead to a fine of ₹5,000.
• Insurance Certificate: Not possessing valid insurance attracts a ₹2,000 penalty for the first offence and ₹4,000 for subsequent violations.
• Registration Certificate (RC): Failure to produce the RC can result in a fine of ₹2,000.
• PUC Certificate: Driving without a valid PUC certificate may incur a fine of ₹1,000 for the first offence and ₹2,000 for subsequent violations.

How to digitally store and access your car documents?

Embracing digital solutions for document storage enhances convenience and reduces the risk of misplacing physical copies:

• DigiLocker: An initiative by the Government of India, DigiLocker allows users to securely store digital copies of essential documents. By linking your Aadhaar number, you can upload and access your driving licence, RC, and insurance papers anytime.
• mParivahan: This app provides access to digital copies of your vehicle documents and offers real-time verification services. It is widely accepted by traffic authorities across India.

Both platforms ensure that your digital documents are legally valid during traffic inspections, aligning with the government's push towards digital governance.

FAQs

1. What essential documents must be kept in a car while driving in India?

The following documents are mandatory for driving in India:

• A valid Registration Certificate (RC)
• A valid Driving Licence
• A valid Car Insurance Certificate
• A valid Pollution Under Control (PUC) Certificate

2. Are digital copies of vehicle documents acceptable?

Digital copies stored in government-approved apps like DigiLocker and mParivahan are legally recognised and accepted by traffic authorities.

3. What are the consequences of driving without valid insurance?

If caught driving without valid car insurance, you may be fined ₹2,000 for the first offence and ₹4,000 for subsequent violations, as per the Motor Vehicles Act.

4. Is a PUC certificate compulsory for all vehicles?

Every vehicle must have a valid Pollution Under Control (PUC) certificate to comply with emission standards and environmental regulations.

5. Where can I store digital copies of my car documents?

You can securely store digital versions of your vehicle documents in DigiLocker or mParivahan, both recognised by the Ministry of Road Transport and Highways.

6. Do private cars need a fitness certificate?

A fitness certificate is mandatory for commercial vehicles, but private cars typically do not require one unless specified under certain regulations.

7. How frequently should I renew my car insurance?

Car insurance should be renewed before its expiration date to ensure continuous coverage and avoid penalties. The renewal frequency depends on the policy duration.

8. What happens if I drive without a valid PUC certificate?

Driving without a valid PUC certificate leads to fines, and in some cases, your vehicle may be restricted from use until compliance is met. The penalty amount varies by state.

9. Can I drive alone on a road trip with a learner's licence?

A learner's licence does not permit solo driving. You must be accompanied by a valid licence holder while driving. Driving alone with a learner's licence is illegal and can result in fines.

10. Do I need to carry original documents while driving?

Yes, carrying original copies of your driving licence, vehicle registration certificate, insurance, and PUC certificate is recommended, as traffic authorities may require them for verification.

Conclusion

Following the legal requirements while driving in India is essential for a hassle-free experience and your safety on the road. Keeping all mandatory documents, like your registration certificate, driving licence, and car insurance, ensures you're always prepared. It's also important to renew your car insurance online on time to avoid penalties and ensure continuous coverage. If you've maintained a claim-free record, don't forget to check your NCB in car insurance, as it can help you save on premiums. Staying organised with your documents keeps you legally compliant and makes your journeys stress-free and safer.

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. 

A bike insurance policy is a crucial safeguard for your two-wheeler, protecting you against financial losses in case of accidents, theft, or damages. However, if your bike insurance expires, you risk losing this protection and may also face legal penalties. Most insurance providers have online facilities for policy renewal. It allows insurance subscribers to renew their expired motor insurance conveniently.

It cuts back on the time that is normally required for mandatory inspection by an authorised surveyor.

What happens when your bike insurance policy expires?

When your bike insurance policy expires, your vehicle is left uninsured, which means:

• You are legally liable for damages or injuries caused to third parties.
• You will not receive financial assistance for damages to your bike.
• You may face penalties if caught riding an uninsured vehicle.
• You may lose out on benefits like the No Claim Bonus (NCB), leading to higher premium costs.
• The renewal process may require a fresh vehicle inspection, increasing both time and effort.

Things to do when your bike insurance policy expires

If your bike insurance has expired, take the following steps immediately:

1. Avoid Riding the Bike – Using an uninsured vehicle can lead to hefty fines and legal trouble.
2. Check the Grace Period – Some insurers offer a grace period after policy expiry, allowing renewal without penalties.
3. Compare Policies – Use online platforms to compare various insurers and find a policy that best suits your needs.
4. Contact Your Insurer – Inform your existing insurer about the lapse and inquire about the renewal process.
5. Undergo Vehicle Inspection (if required) – If the grace period has passed, an inspection may be necessary before renewal.
6. Renew Immediately – Opt for a policy that offers comprehensive coverage and additional benefits.

How to renew expired two-wheeler insurance?

Renewing an expired bike insurance policy is simple and can be done online in a few steps:

1. Visit the Insurer’s Website – Log in to your insurance provider’s website or a trusted third-party portal.
2. Enter Vehicle Details – Provide your bike’s registration number, policy details, and personal information.
3. Select a Policy – Choose between third-party bike insurance and comprehensive two-wheeler insurance based on your requirements.
4. Review the Premium and NCB Benefits – If applicable, check if you are eligible for NCB benefits.

A process called Break-in is commenced by the insurer when a subscriber seeks renewal of an expired policy. In this procedure, the policy is issued based on successful investigation. Now, a new policy will be issued by the customers without manual investigation. The policy needs to be renewed by online payment through the website or mobile app.

The customer has to upload the self-inspection video on the Insure app as per underwriting guidelines. If the video is uploaded on a working day between 9 AM and 4 PM, the policy will be issued on the same day. The only prerequisites needed are recording in broad daylight with the device’s camera resolution to be 3 MP or above, and a high-speed internet connection for error-free upload. Use the feature to renew your bike insurance today. 

Documents required to renew an expired two-wheeler insurance policy

To renew your expired bike insurance, keep the following documents handy:

• Bike registration certificate (RC)
• Previous insurance policy details (if available)
• Personal identification proof (Aadhaar, PAN, or Driving licence)
• Address proof
• Vehicle inspection report (if required)

FAQs

1. Can I renew my bike insurance after it has expired?
   Yes, you can renew an expired bike insurance policy. However, if the grace period has passed, you may need to undergo a vehicle inspection before renewal.
2. What is the penalty for riding a bike without insurance?
   In India, riding a bike without valid insurance can result in a fine of up to ₹2,000 for the first offence and ₹4,000 for subsequent offences.
3. Will I lose my No Claim Bonus (NCB) if my policy has expired?
   If the policy is not renewed within 90 days of expiry, you may lose your accumulated NCB benefits.
4. Can I switch insurers while renewing my expired policy?
   Yes, you can compare policies and switch to a different insurer if you find a better deal.

Conclusion

Renewing an expired bike insurance policy is a hassle-free process when done online. Whether you opt for third-party or comprehensive two-wheeler insurance, ensure that your bike is always covered to avoid financial and legal troubles. Take prompt action, compare policies, and choose the right coverage to enjoy a smooth and secure riding experience.

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. 

Top 6 Trends Witnessed by Automobile Industry During The Pandemic

The COVID-19 pandemic wreaked havoc in the entire world since the start of 2020. The Governments of various countries, including India, were forced to implement strict lockdowns to keep the people inside their homes and control the spread of the deadly coronavirus. As a result, several industries faced severe financial slump which brought a global recession.

The Indian automobile industry too went through a very tough phase after the imposition of first lockdown in the country in March 2020. Sales figures started plummeting and inventories were mounting up for the manufacturers. As the revenues took a severe hit, the automobile sector in India went through its worst phase since 1997-98.

However, once the lockdown restrictions were eased, India’s automobile industry started emerging out of the headwinds. With rapidly increasing demand in the country for personal mobility, the sales figures started to rise once again, leading to a slow but steady recovery for the automobile sector post lockdown. ICICI Lombard allows convenient purchase and renewal of car insurance online as well as offline.

In the meantime, some ground-breaking trends were observed in various facets of the industry. Most of these trends got accelerated due to the pandemic and are now shaping the future of India’s automobile market. Let’s have a look at some top trends in automobile industry of India witnessed during the pandemic.

1. Rising preference for personal mobility

Covid-19 has changed the preferred mode of commute among most of the passengers in India. A survey by PGA labs revealed that almost 56% of people in India prefer to use a personal vehicle instead of public transport for their daily commute. This increased preference for personal mobility has led to an increase in demand for private vehicles and therefore for Motor Insurancetoo, as it is compulsory for all the personal vehicles.

2. Increasing penetration of alternative-engine powertrains

The alternative-engine powertrain has been garnering a rapid demand in the recent years, especially in the two-wheeler and three-wheeler segment. A substantial change has been noticed in the consumers’ perspective, with preference for alternative engine increasing to 49% in 2020 from 39% in 2019.

Moreover, as per a PGA labs survey, nearly 35% of car buyers are willing to pay a premium of more than ₹ 1 lakh for electric mobility. Further, favorable Government policies such as Fast Adoption and Manufacturing of Electric Vehicles (FAME-II), reduced GST rates on EVs etc., have also contributed towards an increased preference for electric vehicles among the consumers.

3. Increasing preference for connectivity features in vehicles

Though connectivity features in vehicles manufactured in India are yet to develop as compared to countries like Germany, Japan, and the USA, entry of global automotive OEMs in the Indian market has given rise to a new trend. Recent vehicles such as MG Hector, Kia Seltos, and Hyundai Venue have impressive factory-fitted connectivity features.

These cars have garnered the attention of the consumers, resulting in huge sales volumes. In the second half of 2020, Morris Garages sold 15,930 units of Hector, whereas Kia received more than 1 lakh bookings for Seltos within five months after its launch. This trend is expected to accelerate with the number of connected cars on Indian roads estimated to reach 1.7 million by 2022.

On some rare occasions, insurance companies reject car insurance claims from their customers. This is generally done when an insurer feels that the claim filed by its customer is not valid or genuine. In such a scenario, the insurance provider doesn’t pay for the damages to the insured car and the car owner must bear this cost out of his/her pocket.

Such a situation can be extremely stressful for any car owner as the repair bills can easily run into several thousand or even lakhs of rupees. Of course, you would never want yourself to be put in such a situation. But what if your car insurer rejects your claim even if you have all the genuine reasons to get it approved?

In this article, we will discuss some common car insurance claim rejection reasons and what steps you can take if an insurer rejects your car insurance claim. Read on.

Common Reasons for Car Insurance Claim Rejection

There are a number of reasons why your car insurance claim may get rejected-

Reason 1 – If your claim is found to be non-genuine

When you file a car insurance claim, your insurance provider appoints a surveyor to inspect the genuineness of your claim. The role of this surveyor is to inspect your car and the damages and determine whether it matches the accident’s narrative. If the surveyor feels that your claim is not genuine, he/she might reject your car insurance claim.

Reason 2 – Inability to produce the required documents

Another common reason for the rejection of motor insurance claims is the inability of the policyholder to produce the required documents. Usually, when a customer files a car insurance claim, insurance companies ask for some basic documents such as policy documents, a Registration Certificate (RC) of the car, FIR copy (in case of theft), driving licenses, Aadhar cards of the driver/owner, etc. If you’re not able to submit any of the documents asked by your insurance provider, your car insurance claim might get rejected.

Reason 3 – If you are found to be violating traffic rules when the accident happened

A car insurance policy provides coverage against unfortunate road accidents or natural calamities. However, it doesn’t cover the damages caused to an insured car if the driver or claimant is found to be violating traffic rules, including drinking and driving, driving without a valid driver’s license, making illegal modifications to a car, etc.

Reason 4 – Delay in filing the claim

An unnecessary delay in filing a car insurance claim can lead to its rejection. Usually, there is a deadline before which you’re required to inform your insurer about an accident and associated losses to get your claim approved. In case you fail to file your claim within this deadline, your car insurance provider might not consider your claim afterward. Therefore, it’s prudent to know about this deadline (which is usually 48 to 72 hours after the accident) and file your claim well within it.

Reason 5 – Non-renewal of car insurance policy

Insurance companies do not entertain claims made on lapsed policies. It may happen that you forget to renew your car insurance policy on time, and it expires. Now, if you meet with an accident and make a claim on your policy, it will be rejected by the insurer. Worse, your car will be considered as an uninsured vehicle and you may get fined by the traffic cops.

Reason 6- Using a private car for commercial work

If your car is registered with the insurance provider as a personal vehicle and you regularly use it for commercial purposes, this might lead to a denial of your insurance claim in case of a mishap.

Reason 7- Providing false information

Providing false or incorrect personal details while buying vehicle insurance is a major reason behind claim denials by the insurer. In some cases, people furnish incorrect information to get lower premium rates, which could raise a red flag for the insurance provider, who will mark the policy invalid.

Reason 8- Changes in vehicle accessories without informing the insurance provider

Whenever you make any additions or modifications to your vehicle, you need to inform the insurance provider before the renewal deadline of the policy. If you fail to do so or get any repairs done without the insurer's knowledge, chances are that your claim will be rejected.

Reason 9- If you were driving outside the specified geographical area

Some insurance policies provide coverage for accidents that happen within a geographical limit defined by them. Any mishaps occurring outside this radius are not covered by the insurance providers. Thus, it is advised to read all terms and conditions before buying car insurance online or offline.

Things to Keep in Mind While Claiming Car Insurance

If you need to claim your car insurance, keep these points in mind-

1. Have proof of damage: Keep photographs and additional details of the accident and the damages caused to your vehicle or third party. This is to be submitted to the surveyor sent by the insurance provider, to smoothen the claim process.
2. File an FIR for the accident: In case of mishaps involving major damages to your vehicle or the life and property of a third party, filing a police FIR is a must. Failure to do so may lead to rejection of the claim.
3. Do not repair the damages before informing the insurance provider: Do not get any repairs done without the knowledge of your insurer. According to the policy terms, the vehicle needs to be checked at the place of the accident. After the car has been inspected, send it to a network garage or any other repair shop and start the claim procedure.

Tips to Prevent Car Insurance Claim Rejection

Here are a few tips that will minimise the risk of claim rejection-

1. Always renew the policy before the deadline: Do not wait till the last date, and renew your car insurance before it expires to enjoy the benefits without a break.
2. Provide all necessary documents: Be prepared with all the originals and copies of the required documents to ensure your claim is not rejected due to incomplete documentation.
3. Read all terms and conditions: Go through your car insurance documents and familiarise yourself with all the policy clauses.

FAQs

1. What should I keep in mind while buying car insurance online?

Buying car insurance online is quite easy these days. However, it is advisable to compare the policies and choose the best one for your vehicle. Buy your car insurance from the official portal of a trusted insurance provider to avoid any complications in the future.

2. How to challenge a claim denial?

If you’re not satisfied by the claim denial, you can raise a dispute by writing to the Insurance Regulatory and Development Authority of India (IRDAI) and the Third-Party Administrator (TPA). After receiving your dispute letter, a tribunal court may be set up to decide whether the insurer should approve your claim or not, and how much compensation you should receive.

3. How to renew car insurance online?

Visit the online portal of your insurance provider and in the car insurance section, find “renewals” and provide your insurance policy number and other details. Follow the instructions and make the fee payment to confirm the renewal of your policy.

4. When does the car insurance become invalid after its expiry date?

A car insurance policy becomes invalid the moment it expires. So, if your policy has expired on 1 March 2025, it becomes invalid from the same date.

5. Can I renew my car insurance after its expiration without an inspection?

The need for a car examination depends upon the insurance provider. If the policy has expired for a long time, the insurer may insist upon an inspection before starting the renewal process.

Conclusion

Car insurance is an essential protection for your financial well-being, but the approval of a claim depends upon several factors. In this blog, we have mentioned the common reasons why an insurance claim may get denied and how you can make the claim procedure smoother. Keep your policy updated and have clear communication with the insurer by providing correct information and adhering to the terms and conditions of the policy. With the right approach, you can avoid the risk of insurance claims getting denied and enjoy the benefits of your car insurance policy.

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

Buying a car is like a dream come true for many. It provides them with a feeling of pride, luxury, and achievement. After all, a person spends a considerable chunk of his/her savings to buy a car and keep it in top condition. That is why every responsible car owner chooses to get financial security for his/her car with a comprehensive car insurance policy.

However, despite all the precautions you take for your car, you can never rule out the possibility of an unforeseen mishap such as fire, theft, road accident, etc. These incidents can either damage your car partially or can lead to its total loss, in which case you must mandatorily cancel your car’s Registration Certificate (RC).

Why Should You Cancel Your RC Before Scrapping Your Old Car?

In case of a total loss of a car, the insurance company pays the IDV to the car owner and sells the remains of the car to a scrap dealer. The scrap dealer then breaks down the remains of the car into small pieces and uses them for the purpose of recycling. After the car is scrapped, the car owner needs to get the registration certificate of his/her car cancelled.

As per Section 55 of the Motor Vehicles Act of 1988, it is the responsibility of the car owner to cancel the RC of his/her car after scrapping it. He/she needs to inform the RTO about the scrapping of the car within 14 days to get its RC cancelled.

Documents Needed for Vehicle RC Cancellation Online

The following documents are needed for the cancellation of vehicle RC online-

1. A declaration from the owner stating that the car is being demolished
2. Car insurance policy documents

In addition to these documents, you must have the payment receipt for the processing fee for RC cancellation. The fee amount and additional documents can differ from one RTO to another; thus, consulting the RTO officials at the beginning of the formalities is advisable.

Steps to the Cancellation of RC of Vehicle

Below are the steps by which you can cancel the RC of your car:

1. Click photos of your scrapped car
2. Get an affidavit stating that your car has been scrapped
3. Inform the RTO about the scrapping of your car
4. Submit all required documents to the RTO
5. The RTO will obtain a clearance certificate from your local police station
6. You will be informed about the cancellation of your car’s RC
7. The RTO will cancel your car’s RC, and you will be provided with a non-utilisation certificate for your car

Benefits of RC Cancellation of Your Car Before Scrapping It

Below are the reasons why it is beneficial to cancel your car’s RC before scrapping it-

Prevent its misuse by fraudsters

In case of a total loss of a car, it is sold to a scrap dealer and can never be used again by the owner. In case the RC of the car is not cancelled after it is scrapped, it can be used by criminals and fraudsters to give a new identity to a stolen vehicle and use it for illegal activities.

Prevent vehicle theft

When you fail to cancel your car’s RC, vehicle thieves get a chance to change the identity of a stolen vehicle by forging its engine and chassis number. As a result, they get motivated to steal more cars. However, such activities can be prevented to an extent by cancelling your car’s RC.

Avoid legal troubles

As mentioned above, it’s the responsibility of the car owner to get the RC of his/her car cancelled after its scrapping. In case you fail to do so, a fraudster can use your car’s identity for a car that’s used for criminal purposes. This may bring serious legal troubles for you in future.

FAQs

1. What is total loss of a car?

As per motor insurance terms, total loss of a car refers to a situation where it gets damaged to such an extent that it cannot be repaired again. Or, if the cost of repairing a car is more than its Insured Declared Value (IDV), the car is said to be in a state of total loss. In such cases, the insurance company pays the full IDV of the car to its owner and sells the car to a scrap dealer.

The total loss of a car can take place due to an unforeseen mishap, such as road accident, earthquake, flood, tsunami, fire, theft, etc.

2. What is the registration certificate of a car?

The Registration Certificate or RC of a car is an official document that is provided to the car owner after its registration. A car’s RC basically states that it is registered with the Indian Government and is, hence, fit to be driven on roads. It contains the unique registration number of a car, its engine and chassis number, name of the car owner, and the expiry date of the RC.

You can get your car’s RC either from the Regional Transport Office (RTO) where you’ve registered your car or you can download it from the Government’s “Parivahan Seva” portal.

As per the Motor Vehicles Act of 1988, a car insurance policy is mandatory for all motor cars running on Indian roads. As per the latest amendment to the act, driving a car without a valid car insurance policy can attract a penalty of up to ₹ 2,000 or imprisonment of up to 3 months or both. Hence, non-renewal of your car insurance in time can bring not only legal hassles but also financial risks.

However, purchasing or renewing your car is not that easy. You need to make a number of decisions such as the type of policy you want to purchase, the selection of add-on covers, choosing the insurance provider, etc. In order to make an informed decision, you need to be aware of the different terms and jargon related to car insurance policies.

One such term is the “Break-in Period” in a car insurance policy. In this article, we’ve tried to elucidate what exactly a break-in period in car insurance and why it is important for you to know about this term before buying a car insurance policy. Let’s get started.

What is a break-in period in car insurance?

A car insurance policy is an annual contract that needs to be renewed every year. If you look at the policy document carefully, you will find that the date from which the insurance cover came into effect and the date at which it will terminate is clearly mentioned in the document. To ensure legal compliance, you need to renew your car insurance policy before this expiry date.

However, due to your busy schedule, you may sometimes forget to renew your car insurance policy in time. And if you miss the deadline to renew the policy, even by a day, it results in a break in the policy. However, most insurers allow a 90-day grace period to renew your car insurance policy. By renewing your policy within this period, you won’t lose the No-Claim Bonus benefit. You may still have to go through car inspection depending on your insurance company policy.

The time period between the last date for the renewal of your car insurance policy and the date on which it is actually renewed is known as the “Break-in Period” of the policy. For example, if your policy renewal date is 1^st March and you renew your policy on 15^th April, then there will be a 45-day break in the policy, which will be known as the break-in period.

Your car insurance policy remains inactive during the break-in period and any financial or legal liabilities arising during this time will have to be borne by you.

Consequences of not renewing car insurance during the break-in period

It’s crucial to renew your car insurance policy on time and avoid any break in the policy. It’s because it can bring in several legal as well as financial hassles.

• No third-party cover

As per the Motor Vehicles Act, a valid third-party motor insurance cover is mandatory for every vehicle running on Indian roads. If you don’t renew your car insurance policy on time, it will leave you without third-party cover. And if you’re caught driving a car without a valid third-party insurance cover, you may be penalised with a fine of ₹ 2,000 by the traffic cops.

Moreover, if your car gets involved in an accident during this period and causes damages to a third party, you will have to bear the entire legal and financial liability out of your own pocket.

• No own damage cover

While an Own Damage (OD) cover is not mandatory, it is highly recommended for every car owner. It provides financial security to the vehicle against the damages caused by mishaps such as collision, theft, vandalism, fire, natural disasters, etc.

If you don’t renew your OD cover in time, your car will get exposed to financial risks and in case it meets with an accident, you may have to pay for the loss out of your own pocket.

• No-claim Bonus

No-claim bonus (NCB) is the benefit given by the insurance providers to the policyholders for every claim-free year. This benefit is given in the form of a discount at the time of policy renewal. If you fail to renew your policy within the due date, you stand a chance of losing your accumulated NCB. However, if you renew your policy within the maximum break-in period of 90 days, your NCB will be reinstated.

Myths about car insurance break-in period

Some of the myths about the car break-in period are:

• Myth 1: You can file claims during the break-in period.
  • Reality: The break-in period provides no active coverage; hence, claims cannot be made.
• Myth 2: Renewal premiums are always higher after a break-in period.
  • Reality: While some insurers may increase premiums due to risk factors, competitive options are still available.
• Myth 3: The break-in period is the same for all insurers.
  • Reality: The duration and policies regarding the break-in period vary across insurance providers.

Benefits of renewing car insurance on time

The advantages of renewing car insurance on time are:

1. Continuous coverage: This ensures that the car remains insured without any gaps.
2. Retention of No Claim Bonus (NCB): Timely renewal allows policyholders to retain their accumulated NCB in car insurance.
3. Avoids legal issues: Ensures compliance with motor vehicle laws.
4. Peace of mind: Reduces the risk of financial losses due to accidents or damages.

Disadvantages of a break-in period in car insurance

The demerits of having a break-in period are:

• Risk of uninsured damages: The owner will have to bear any repair or replacement expenses during this period.
• Higher premiums: Some insurers might increase the premium if a policy lapses.
• Tedious renewal process: Some insurers may require a fresh vehicle inspection during renewal, delaying the process.

How to renew car insurance during the break-in period?

Follow these steps to renew your car insurance during the break-in period:

1. Contact the insurer: Reach out to your insurer and inquire about renewal procedures.
2. Get vehicle inspection done: Some insurers require a vehicle check before policy renewal.
3. Compare plans: Consider switching to a better policy if the previous one doesn’t meet your needs.
4. Renew online: Most insurers allow you to renew car insurance online, following a quick and easy process.

FAQs

1. Can I drive my car during the break-in period?

No, driving without valid insurance is illegal and risky.

2. Will I lose my No Claim Bonus (NCB) if my policy lapses?

Yes, if you do not renew within the grace period, NCB benefits may be lost.

3. How long does the break-in period last?

It varies depending on the insurer but typically lasts a few days to weeks.

4. What is the grace period for car insurance?

The grace period in car insurance is the time frame the insurer allows to renew the policy without lapse or loss of benefits. It varies based on each insurance provider.

5. What is the penalty for expired car insurance?

If you are caught driving a vehicle without valid insurance, you may face a fine of ₹2,000 and/or a jail term of up to three months for the first violation. For a second offence, the penalty increases to ₹4,000 and/or up to three months of imprisonment. Remember that these penalties are subject to change based on amendments to the Motor Vehicles Act.

Conclusion

Renewing your car insurance policy before the due date is very important. By failing to do so, you not only expose your car to certain financial risks but also can attract legal punishment. If by any means, you forget to renew your car insurance in time, you must do so within the allowed break-in period, i.e. a maximum of 90 days from the policy expiry date.

Otherwise, you may lose out on the NCB benefit and may have to get your car re-inspected by the insurer. If you’re a person who tends to forget the policy renewal date, you can set a reminder on your smartphone or sign up with your insurer to receive notifications about the renewal date through e-mails and SMS alerts.

With ICICI Lombard’s car insurance policy, you can renew your policy online every time, without any hassles. Besides, we offer unique additional covers at a nominal extra cost that can significantly boost the coverage of your car insurance policy.

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

Holi, the festival of colours, is here and you must be excited about the joy and ecstasy it offers. This festival calls for splendid celebrations with vibrant colours, water balloons, and water guns. However, while we humans revel in Holi celebrations, our precious cars often become victims to the madness and mischief all around.

It is common for cars to get painted with blue, black, and red stains all around their bodies. Removing these Holi colours from cars can get really painful and burdensome. It gets even more stressful when the interiors of a car, including seat’s upholstery, dashboard, and floor mats get dirty and spoiled. Not only this, water ingress can even cause damage to your car’s engine and other mechanical parts.

In this article, we will discuss how to remove Holi colours from your car. We will also discuss how you can ensure your car’s paint stays protected during Holi celebrations. So, here are a few simple tips to keep your car safe and protected during Holi.

1. Park your car in a closed space and cover it

It might seem obvious, but you should make sure your car is not parked in an open space during the time of Holi. Anyone can throw the splashes of colours on your beloved vehicle and stain it badly. Hence, it’s prudent to park your car in a closed parking space and keep it covered using a car cover.

Make sure to cover your car completely, i.e. from its roof till the wheels. This will keep your car protected from colours, dirt and water during Holi celebrations. While buying your car’s cover, you should ensure that it’s of optimum quality and water proof.

2. Apply car wax or Teflon polish on your car’s body

Before you take your car out for a drive during this time, don’t forget to apply a coating of car wax or Teflon polish on its body. This will ensure your car’s paint protection even if it gets some colour stains. And not just that, applying Teflon coating on your car’s body will also protect your car from rusting and damages caused due to sunlight.

You can either buy car wax polish from a nearby auto shop and apply it yourself or you can take your car to a mechanic or service centre to get it coated with Teflon. Remember that applying wax polish is a cheaper option as compared to Teflon coating, but the latter is more superficial in quality.

3. Protect your car’s interiors with cling wraps or plastic covers

Remember that it’s not only the exteriors of your car that needs protection. It is equally important to protect the interiors of your car from getting stained or damaged. In fact, it is a difficult and stressful job to clean your car’s upholstery if it gets soiled. In case it gets damaged, fixing it can turn out to be a costly affair.

What you can do is use cling wraps or plastic covers to cover your car’s interiors, including its seats, dashboard, steering wheel, doorknobs, gear knob, headrests, and backrests. You can also use old clothes, bedsheets, towels, or curtains to cover the interiors of your car.

Owning a car is a special feeling. The connection between a person and his/her car cannot be described in words. In fact, many people love their cars just like their kids. Even a minor scratch on your car can give you a feeling of deep pain. However, just like other things in your life, your car too has a life span and one day you will have to part ways with it.

When you decide to purchase a new car and sell your existing vehicle, it can hurt you emotionally as well as financially. While nothing much can be done for the emotional pain, you can reduce your financial stress if you maintain your car properly. By keeping your car in a tip-top condition, you can fetch maximum value when you go out to sell your used car in the market.

Usually, the resale value of a car depends upon a number of factors such as the condition of its exterior as well as interiors, engine, tyres, mileage, and externally fitted accessories. In this article, we have listed a few simple tips that can help you maximise the resale value of your car. Continue reading.

1. Get your car serviced at least once every year

It’s very important to take your car for regular service at an authorised service centre in frequent intervals. Ideally, you should get your car serviced at least once every year. While giving your car for servicing, do not forget to ask the mechanic to change all necessary things such as oil filter, air filter, AC filter, engine oil, and gear oil.

This will keep your car running in perfect condition without any mechanical issue. Such a car will be the preferred choice of second-hand car buyers. Hence, you will be able to negotiate well for its price when you sit down with a buyer to sell it.

2. Wash the exteriors and clean the interiors regularly

Cleaning and washing your car regularly is very important to keep its shine or gloss intact. This will create a strong first impact of your car in the minds of prospective buyers. If possible, you should wash your car at least once every week. Moreover, if you park your car in an open garage, you should wash it more often (two to three times a week).

Equally important is to clean the interiors of your car. Interiors of a car include seat’s upholstery, dashboard, steering wheel, gear knob, and floor mats. To clean the interiors of your car, you can buy a good quality vacuum cleaner and do it yourself or you can avail the services of the professionals.

3. Replace the tyres when required

The tyres are one of the most important components of a car. They separate your car from the road and help in maintaining a firm grip with it. While assessing the value of your car at the time of resale, the buyers will surely look at its tyres. A dull and worn out pair of wheels may create a bad impression and bring down the resale value of your car.

Ideally, you should change your car’s tyres after every 40,000 kilometres. If you drive in rough conditions, you may even have to do it even earlier. Replacing the four tyres of your car may cost you somewhere around ₹ 10,000 to ₹ 15,000. However, it will help you fetch a much better deal when you opt to sell your car.

Owning a car comes with many responsibilities, and one of the most important ones is having the right insurance policy. Car insurance is not only a legal requirement but also a necessary measure to protect yourself and others on the road. While many people choose yearly plans, long-term car insurance policies are getting more popular due to their wide range of benefits. Such plans provide protection for more than one year, which helps drivers save money in the long run.

Let’s find out what a long-term car insurance policy is, its many advantages, how to avail of it and what happens if you drive a new car without it.

What is a long-term car insurance policy?

A long-term car insurance policy is a plan that provides coverage for your vehicle for a period longer than the usual one-year term. These policies offer protection for two to three years at a fixed premium. Once you purchase a long-term policy, you do not need to renew it every year, which is a major benefit for many drivers.

Long-term policies can include comprehensive coverage as well as third-party car insurance, which is the minimum legal requirement. With a long-term policy, you can choose either comprehensive cover or stick to third party protection depending on your needs.

Benefits of a long-term car insurance policy

Here are some of the important benefits:

• It eliminates the hassle of policy renewal

Renewing a car insurance policy every year can be time-consuming and easy to forget. Missing the renewal date can leave you without coverage, which puts you at legal and financial risk. With a long-term policy, you avoid this stress entirely. You simply pay once and stay protected for a longer period.

• Get more discounts on premium

Long-term car insurance policies come with attractive discounts. Insurance companies may offer reduced premium rates as a reward for committing to a longer coverage term. These discounts are usually higher than what you get with annual policies. In addition, if you include third-party car insurance in a long-term plan, the overall cost can be lower than renewing a basic third-party cover every year.

• Avoid policy expiry

Forgetting to renew your car insurance on time can lead to an unintentional policy lapse. This not only exposes you to legal penalties but also leaves your car unprotected. A long-term insurance policy keeps your vehicle continuously insured. You do not need to set reminders or worry about missing deadlines.

• You will not lose out on NCB

NCB stands for No Claim Bonus. It is a discount given to you by your insurance company for not making any claims during your policy term. The longer you go without making a claim, the higher the NCB you can earn. These benefits remain available even with a long-term policy. Some insurers offer additional NCB protection or allow you to earn it at a faster rate. This can lead to significant savings in future premiums.

• It ensures optimum safety of your car

Long-term car insurance offers consistent and uninterrupted coverage, which is important for ensuring your vehicle is always protected. In the event of an accident, theft or any natural disaster, you can rely on your policy to cover the costs without the stress of out-of-pocket expenses. .

How to avail benefits of this insurance?

To take advantage of a long-term car insurance policy, follow a few simple steps:

1. Compare different insurers: Not all insurance companies offer long-term plans. Research and compare policies from trusted providers to find the best option.
   
   
2. Check what is covered: Ensure that the policy includes everything you need, such as own damage cover and third-party car insurance.
   
3. Look for discounts: Some insurers offer early bird discounts or loyalty bonuses for choosing long-term options. Take advantage of these offers.
   
   
4. Buy online: Many insurance providers offer additional discounts if you purchase the policy online.
   
   
5. Keep your vehicle details ready: You will need to provide your car’s registration number, make, model and year of manufacture.

Penalties for driving a new car without long-term car insurance policy

As per the updated traffic regulations in 2025, the penalties for driving without a valid car insurance policy are as follows:

• First offence: A fine of ₹2,000 and/or imprisonment for up to 3 months, along with possible community service.
• Repeat offence: A fine of ₹4,000 and/or imprisonment for up to 3 months, with continued risk of community service.

It is especially helpful if you forget renewal dates or want to avoid legal trouble. Plus, if you include third-party car insurance in your plan, you meet the minimum legal requirement while enjoying long-term benefits.

Conclusion

A long-term car insurance policy is a smart choice for anyone looking for ease, savings and solid vehicle protection. Eliminating the need for annual renewal, offering better discounts and preventing policy lapses brings convenience and peace of mind. Whether you choose comprehensive or third-party car insurance, opting for a long-term plan ensures that your car stays covered at all times.

If you're planning to buy a new vehicle or simply want to switch to a more reliable insurance solution, consider the long-term option. It not only keeps you legally safe but also provides financial and practical advantages that make it a worthwhile investment.

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.

Customer ease is always the top priority at ICICI Lombard. As part of this effort, ICICI Lombard has launched a facility called InstaSpect, the mobile self-inspection feature that eliminates the need for physical inspection of cars. ICICI Lombard customers can now record a video of their car on their mobile phones as per the guidance provided in the ‘Insure’ app. This facility saves customers the hassle of having to wait for a surveyor to visit and carry out the physical inspection.

Inspection is mandatory when a motor insurance policy lapses and it causes delay in issuance of renewed policy. Normally, the insurer initiates a process called ‘Break-In’ when a customer applies for renewal of a lapsed car insurance policy. In this process, an inspection by authorised surveyors is carried out and the policy is issued based on satisfactory inspection. However, with the ‘Mobile Self Inspection’ feature, the time taken for renewal of lapsed policy reduces to a few hours from 2-3 days. This feature has made renewal of lapsed policy an easy-going and stress-free process for customers. Customers of other insurance companies who want to make a shift to ICICI Lombard can also use this feature.

For using the ‘Mobile Self Inspection’, a customer needs to have an internet connection; mobile phone with 3 MP or above camera resolution and the video of the car must be recorded in broad daylight. The app also contains a demo video for step-by-step guidance of the ‘Mobile Self Inspection’ process. After making payment for renewal of car insurance policy the customer is prompted to upload the self-inspection video via the mobile app.

Updated on - 09 Feb 2026

Timely renewal of your car insurance policy before its expiry date is important. An expired or inactive policy can not only land you in legal trouble but also lead to claim rejection. As per the Motor Vehicles (Amendment) Act of 2019, driving an uninsured vehicle in India can attract a penalty of ₹ 2,000 or imprisonment of up to 3 months or both. Renewing your four wheeler insurance online is now easier, faster and more convenient than ever. You can do that with just a few clicks.

Here are some reasons why renewing car insurance online is the best method now.

Convenience

The most notable advantage of online car insurance renewal is that you can do so from the convenience of your home. All you need to do is visit your preferred insurer's website and renew your car insurance policy by paying the premium online. This eliminates the hassles of physically visiting the insurance company’s office.

Time-saving compared to offline renewal

Renewing four-wheeler insurance online saves valuable time compared to visiting an office or going through an agent. The process can be done anytime, anywhere, without waiting for business hours. Once the renewal is completed, the updated policy is delivered instantly to the registered e-mail ID, avoiding delays that usually occur offline.

The digital process also removes the need for paperwork. Documents can be uploaded online and plans from different insurers can be compared in one place. With online support channels, you get faster responses to queries and automated reminders from your insurers to avoid missed renewal dates.

Easy comparison of policies and premiums

Before purchasing a car insurance policy from an insurer, it's important to compare it with other available alternatives. This helps you select a policy that meets your needs and is within your budget. While buying an online car insurance policy, you can easily compare various options. It saves a lot of time and effort by giving you access to quotes from different insurers in one place. Many sites also provide filters for coverage type, add-ons and claim settlements ratio, making checking side-by-side options for your car insurance renewal easier.

Secure digital transactions

When you renew your car insurance online, your payment goes through secure gateways that protect your details at every step. Advanced encryption keeps your banking information safe, so you don’t have to worry about fraud or misuse. You also get a digital receipt instantly, giving clear proof of the transaction that you can store on your device for future reference. Many insurers add a layer of safety through two-factor authentication, ensuring your transaction is completely protected.

Instant policy issuance and renewal confirmation

When you buy a comprehensive car insurance policy online, it is issued almost instantly. Once you pay the premium, your policy renewal is confirmed immediately. The document is sent to your registered email within a few minutes. Unlike the offline renewal method, you won't have to wait for days to receive your policy document. This is because the insurers take no time to issue online car insurance policies. There is no lengthy paperwork as the documents are verified through a computerised process.

Attractive discounts and offers

One of the most important reasons many customers prefer buying car insurance online is that it may be cheaper than offline plans. This is because by selling a policy online, an insurer saves on various fronts, such as brokerage charges, administration charges, processing fees, etc., and passes these benefits directly to their customers in the form of reduced premiums.

24/7 accessibility for policy management

With online car insurance, you can manage and renew your policy anytime, from anywhere, without being limited by office hours. This 24/7 accessibility makes it easier to stay on top of renewals, checking policy details or updating information at your convenience. This flexibility ensures that your coverage remains uninterrupted, giving you peace of mind knowing your car is always protected. 

Avoiding last-minute penalties and lapses

Online platforms often send reminders before your policy expires, giving you ample time to renew without stress. By acting early, you avoid fines or other legal charges that may apply for late renewal and ensure your car remains fully insured without any gaps.

Eco-friendly and paperless renewal process

Online car insurance renewal involves minimal paperwork. You just need to simply fill out and sign the proposal form digitally, select your desired coverage and add-ons and make the payment securely online.

A soft copy of your policy document will also be sent to your registered e-mail ID or WhatsApp number. This completely paperless process saves time and reduces clutter and is eco-friendly.

Customer support and assistance online

When managing your car insurance online, help is just a click away. Most insurers provide dedicated customer support through chat, email or phone, so you can get your questions answered quickly. You can track your policy, resolve issues and clarify doubts without visiting an office. You can also ask questions through chatbots and access information about the policy instantly. This saves you time and effort.

Conclusion

Renewing your four-wheeler insurance policy online is now the easiest and most convenient way to keep it active. You can use the insurer’s website or a genuine insurance aggregator website to renew your policy. The online renewal process offers several advantages, like convenience, 24/7 accessibility, discounts, etc.

If you are looking to buy a new policy or upgrade the existing one during your next insurance renewal, fill out the form on this page to receive tailored car insurance advice. Our experts will help you choose an ideal policy.

FAQs

1. Can I renew my car insurance online after it has expired?

Yes, most insurers allow renewal after expiry, but the process may include a vehicle inspection and could affect your no-claim bonus. It is best to renew before the expiry date to avoid penalties and coverage gaps.

2. What documents are required for online car insurance renewal?

In most cases, minimal paperwork is needed. You may need your existing policy details, car registration number and basic personal information. The process is largely digital and paperless.

3. Can you switch between insurers while renewing online?

Yes, you can compare policies and premiums online and switch to another insurer if you find a plan that better fits your needs. Your no-claim bonus, if applicable, can also be transferred to the new insurer.

4. Will you get an updated car insurance policy immediately after renewing online?

Yes, once the payment is completed, the renewal policy is issued instantly and sent to your registered email address or WhatsApp number.

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.