Recently an insurance company in the US settled an insurance claim within 3 seconds. A leading insurer in India - ICICI Lombard is on the verge of offering auto insurance policies based on photos clicked by the customer!...

Digital technologies like artificial intelligence are disrupting the way insurance is purchased, claims are filed, processed and settled by insurers. The disruption is expected to bring tremendous advantages for you, the customer, as well as the insurance companies. Read on to know how.

Touchless claim processing- the promised land

At present, claim-settlement is a lengthy process, and claims are touched or handled by multiple agencies before the claim amount is approved and disbursed. The situation has remained the same over the years. Hence, In India, where there are 230 million vehicles and 1,200 accidents on a day to day basis, inspection and claim processing can be a tedious and time-consuming affair. Thus, you and your cars often have to remain off-road for days following a mishap.

However, with the dawn of AI, all the manual intervention can be done away with. Artificial Intelligence, machine learning, telematics, Big Data and a host of other technologies help capture damage, perform audits, report claims and communicate with the customer. Thus, with AI, the claim processing time is expected to come down from days to a matter of minutes.

Benefits that Touchless technology will bring about

Touchless claim processing would offer a range of benefits. Once implemented, it would help you file for claims without having to face the red tape. For the insurers, it would result in measurable improvements in engagements. A recent survey reveals that the top 50 adapters of AI have experienced customer engagements to the tune of 70%. The insurance companies would reap benefits across several vital metrics as illustrated below-

As evident from above, improvement in performance across these critical matrices would not only benefit the insurer but also bring immense benefits for the customers as well. In addition to a reduction in the processing time of approvals, AI would also help in better underwriting, thereby reducing the costs of premiums.

Another benefit that the introduction of AI brings is a visible reduction in losses due to fraud. According to an estimate, fraudulent claims currently account for annual losses to the tune of Rs. 10,000 crore for the insurance industry. As AI helps in better detection of fraud, it will benefit in faster disbursal of insurance claims.

For instance, a family, covered under the term life insurance, have to wait for several days now before the insurance company can start the process of claim disbursal. During this time, the insurance company accesses whether the claim is fraudulent or not. Now with AI coming in, millions of database searches can be performed within fraction of a second and claim disbursal will become a breeze.

The big picture

Over the last decade, the insurance industry in India has grown at a rate of 12.49% per annum. Currently, there are 63 insurance companies, out of which 39 operate in the non-life category and 24 operate in the life category. However, despite the growth achieved over the last ten years, the penetration of non-life insurance stands at 0.93% of GDP. As compared to its Asian neighbours, the country performs poorly in terms of density and penetration. Thus, a large section of the population does not have access to any insurance cover.

As the industry moves towards embracing technologies like AI, Big Data, Telematics, etc., it would be able to offer more customised products. This would help bring in more customers under the fold of insurance. The insurance industry is approaching a future that is touchless and automated- a future that is almost instant and does not require human intervention.

For instance, global tech giants are making progress towards a digitised future where the vehicle would file for the claim post-accident. The sensors in the vehicle would assess the damage and click off the supply chain, ensuring that it gets picked up and is repaired without the need for human intervention. In case of health insurance too, wearable devices can send the claim request post an accident thereby eliminating the need for human intervention.

Going back to where we started, fintech start-ups in the US have demonstrated that through the use of AI claims can be settled in a matter of 3 seconds. During these 3 seconds, the AI- powered chatbot interacting with the customer reviews the claim, cross-checks it with the original policy document, runs multiple fraud detection algorithms before sending payment to the bank. The enormity of this achievement can be gauged from the fact that before AI, these steps would take several days----that is the power of AI!

Indian insurers, too, are leveraging the power of AI to achieve customer satisfaction and bring efficiency into the process. From launching programmes for nurturing AI start-ups, partnering with AI service providers to developing in-house applications, domestic insurers are leaving no stone unturned to make the most of this new field of computing technology. The systems thus developed are diverse and infused with innovation. For example, a reputed car insurance provider in India has developed an AI-powered application to estimate the damage to a car through pictures.

The life insurance sector is also not far behind. Here, we find the application of AI across the spectrum, from data analysis, robotics process automation, risk analytics to intelligent fraud detection. However, in both sectors, we find the predominant use of AI for developing smart chatbots and virtual assistants.

While there is still sometime before AI and other technologies can completely revolutionise our insurance experience, the change has already begun. Digital technologies offer a world of infinite possibilities for the insurance industry. Till now, we have seen only a glimpse of what the future can, and only time will tell their full potential.

The recent Kerala floods caused catastrophic damage not only to human and animal life but also to buildings and cars. In fact, it was estimated that cars worth ₹1000 crores were submerged during the floods.

While such natural disasters don’t come with a warning sign, we can do our best to stay prepared for the aftermath, like purchasing motor vehicle insurance to take care of any expense that may arise due to natural disasters. Water damage can destroy everything from your car’s interiors to your wheels. Read on to find what to do if your car is flooded with water.

Step One: Call Your Vehicle Insurance Provider

Much like any other accident, the first step in your checklist should be to call your vehicle insurance company in case your car is flooded.

Step Two: Do not Try to Start the Engine

While your first instinct when your car is flooded would be to try to restart the engine, resist this temptation. If water has already entered your car engine, trying to start your car can destroy the engine.

Step Three: Assess the Damage

Survey the extent of damage before you take the next step. Debris and mud create a waterline around the interior as well as exterior of your car.

• Water level above the dashboard: Your motor vehicle insurance company will consider the car has been totalled and will require a professional assessment from a mechanic.
• Water below the bottom of the doors: Move to Step Four

Step Four: Open the Doors

If your car is flooded, its interiors, if left unattended, can allow mould to grow. Once you open the doors and roll down the windows, do the following:

• Place towels on the floor
• Get the car to a higher ground

Step Five: Disconnect the Battery

Before you check the other parts of your vehicle, disconnecting the battery can protect you from electric shocks.

Step Six: Look Under the Hood

Do not start your engine if you see any of the following:

• Water droplets on the dipstick
• High oil level
• Water in the air filter

Step Seven: Change Oil and Air Filter

The next step to take if your car is flooded is to change the fluids. You can either carry out these repairs yourself or wait for a mechanic:

• Change the engine oil
• Change the transmission fluid

Step Eight: Check Other Signs of Damage

If you have an older vehicle, chances are the fuel system is not sealed. In this case, you’ll need to check out the following fluids:

• Braking fluid
• Clutch fluid
• Coolant
• Power steering fluid

However, if you are inexperienced and don’t know how to go about it, it is better to contact a professional car mechanic. Additionally, if your car is flooded, electrical components will be the first to get affected. A thorough check is recommended to ensure that all of them are functioning properly.

Step Nine: Check the Tyres

First, clean the tires with a hose to check for damage. Next, check the tire pressure. In case of high pressure, head to a petrol pump to get the pressure to an optimal level.

Step Ten: Total Loss

If your car is flooded and there is a lot of damage, which can create recurring problems, you should consider declaring your car as a total loss. This can potentially save you the hassle of getting it repaired every few days since issues caused due to a car getting flooded can manifest themselves several months or years, after the event.

Follow this detailed checklist in case your car is flooded to assess the situation. However, buying car insurance online is the best measure to protect your car and cover the losses in case of a natural or man-made disaster. Furthermore, a vehicle insurance policy also covers losses arising out of theft or third-party liability.

Frequent issues arising from car flooding

Flooding can lead to several serious issues in your vehicle, including:

• Engine damage: Water entering the combustion chamber can seize the engine.
• Electrical malfunctions: Wiring and sensors are highly vulnerable to water damage.
• Brake failure: Water in the brake lines can lead to inefficient braking or complete failure.
• Mould and odour: Damp interiors can breed mould and create persistent smells.
• Corrosion: Prolonged exposure to water leads to rusting of metal components.
• Airbag malfunction: Water can affect airbag sensors, making them unreliable in future collisions.

Being proactive with your car’s maintenance, opting for and knowing the right steps to take can save you from major financial losses after a flood.

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

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

When a car is declared a total loss or is stolen, then the motor insurance company pays the insured, the Insured Declared Value or IDV. In layman terms, IDV can also be called the current market value of your vehicle.

The Definition of IDV

IDV is the maximum amount that the insured can claim from the vehicle insurance company in the unfortunate event of his car being stolen or declared a total loss. The value is based on the manufacturer’s selling price and is arrived at by deducting the depreciation of the vehicle. Furthermore, the IDV is solely the value of the vehicle as well as the accessories fitted, and does not cover the cost of insurance or registration.

How Is It Calculated?

The vehicle insurance  company calculates the Insured Declared Value based on several data points. Most of these data points are found in the Registration Certificate of the vehicle. Information such as the city of registration, date of registration and type of registration can be found on this certificate; apart from other details of vehicle like the make, model, cubic capacity and ex-showroom price.

Percentage of Depreciation

As the age of the vehicle increases, the percentage of depreciation also increases. In fact, depreciation kicks in as soon as the vehicle leaves the showroom. The Insurance Regulatory and Development Authority of India (IRDAI) has stated that the maximum declared value of the vehicle cannot be more than 95% of its showroom price.

This means that depreciation takes away 5% from the showroom value of the vehicle, the minute it leaves the showroom, and this percentage stays till the vehicle is 6 months old. After that, the motor insurance company calculates the depreciation based on the following chart.

This is an age of technology and information. Our everyday routine depends on how much we can learn and adapt according to the changing technologies. Just like every other part of our lives, vehicles and the way they are managed and tracked are also transforming. One technical innovation that is helping in this regard is telematics, hardware and software that are used in tracking everything that is to know about a vehicle.

What is telematics?

Telematics is the latest buzzword that has piqued the interest of various industries. It covers all types of telecommunications, vehicular technologies, road transportation, road safety, electrical engineering (such as sensors) and computer science (such as multimedia and internet). It acts like a “black box” for your vehicle, keeping a record of all the data related to it in real time.

How does telematics work in a car?

In cars, telematics systems collect real-time data using GPS and onboard diagnostics (OBD-II) ports. This data includes speed, engine health, fuel consumption, braking habits and seat belt usage. The information is then transferred through a cellular or satellite network to a centralised cloud platform. Drivers and managers can keep track of this data through a user interface, helping them understand driving behaviour and vehicle performance.

Such data is not only useful for monitoring safety but can also influence the cost of third party car insurance. Insurers can analyse driving habits to offer usage-based insurance (UBI), rewarding safer drivers with lower premiums.

How does telematics software work?

Telematics software processes and presents the information of the vehicle in a way that helps owners and other interested parties understand vehicle usage and maintenance. When the data is collected, an analysis is run by the software, which then generates reports and stores the information. Whenever the owner wants, they can check this information related to vehicle location, maintenance alerts and even driving behaviour.

Applications of telematics

Telematics technology has broad and evolving applications:

• Auto Insurance Telematics

Telematics are increasingly being used in motor insurance, with the introduction of Usage Based Insurance (UBI). The idea behind this is a pay-as-you-go system. For example, a driver who is rash and reckless will be charged for future premiums more than a responsible driver. It also eases in direct customer interaction and validation of claims in case of an accident.

• Intelligent Vehicle Technologies

The evolution of telematics has led us to Intelligent Vehicle Technologies. IVT comprises of electronic, electromechanical as well as electromagnetic devices. These devices are used in conjunction with computer controlled devices and radio receivers to aid in artificial intelligence. This helps car safety systems for making rides safer for the users.

• Wireless Vehicle Safety Communications

This kind of telematics aid in car as well as road safety. Road hazards, location and speed of traffic are transmitted on short range radios. This keeps the drivers and home users updated about the most recent traffic conditions in your area, thereby greatly reducing the chance of accidents and traffic congestions.

• Tracking of Shipments

Telematics is also used to track freight containers using Global Positioning Satellites (GPS) for increased security and safety. This feature is becoming increasingly important as more shipping companies are modernising their business infrastructure.
 Similarly, tracking the movement and position of trailers can also be carried using a mobile network or geo-satellite communication. This software directly updates the tracking details through a PC or web-based software.

• Driverless Cars

Google was the first to present us with a working prototype of self-driving cars. Since then, there have been numerous driving tests that have been deployed. The future of this technology looks promising.
 However, there are a few kinks that need to be adjusted. Companies garnered a lot of heat in the news due to minor accidents caused by driverless cars. Regardless of these trivial issues, we are looking towards a bright and innovative future.

• Family and Friends Tracking

Telematics can also help you easily locate your friends and family. With the Internet of Things (IOT) on the rise, we can expect fine-grained control of the tracking features. This in turn will help provide assistance in case of emergencies as it has been observed that if help is given on time, it can greatly impact the survival rate of the victim.

Conclusion

Telematics not only works as a vehicle tracking system, but it is also one of the tools that has changed how people own and secure a vehicle. While one should be aware of the advancements in the industry, don’t forget to cover your bases & secure your car with suitable four wheeler insurance. Whether you're a fleet manager looking to improve efficiency or an individual seeking better rates on your third party car insurance, telematics promises better and useful information and control over your vehicle.

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

Whether or not you’ve named your car, we know it’s very dear to you. However, in the busy nature of life, the task of periodic car repair and checks can be a little unrealistic. But your car still requires frequent maintenance checks for reducing future repair costs, extending its life and increasing its performance.

With these five basic DIY car maintenance and car service tips, you can take good care of your prized possession without having to be a mechanic.

• Change the Wiper Blades
  Wipers must be changed at least once a year. Old wipers trap dirt and rub it into the glass, which if allowed to go on for too long can be dangerous. Eventually this will lead to a haze effect that will scatter sunlight, blurring vision. This is a safety hazard as it will compromise your view of the road while driving. Most wiper blades are easy to change and come in a varied price range.


• Maintain the Tyre Pressure
  Maintaining the right tyre pressure will not only keep you safe but it will also help you save some extra money. Both, overinflated and underinflated tyres, are a problem because they reduce the grip, work the engine harder and increase the chance of a blowout. Moreover, tyres with the right pressure will increase your car’s fuel efficiency and longevity.


• Check the Oil Level
  It’s essential to check your car’s oil level as frequently as recommended by the manual. Oil lubricates all the moving parts in the engine so they don’t wear and tear to a point of dysfunction. A lack of oil, or the presence of dirty oil, increases the risk of overheating and shortens the life of the engine. A well-oiled engine will significantly increase the car’s efficiency and life. So get into the habit of regularly checking your car’s oil level and go for a oil change when required.


• Keep it Clean
  Keep your car clean inside out. This may sound basic but it is very important. Your car is subject to sun, acid rain, grease, smog and insects. Initially their chemical compounds will eat away the paint and eventually they will attack the metal of your car. Give your car a good wash regularly, remove all the non-essential things cluttering your car and vacuum it on the inside on a frequent basis.

In India, about 75% of the annual rainfall is concentrated in 3-4 months of the monsoon season. This results in heavy discharge from rivers, causing widespread floods during this period. Floods are also the most commonly occurring disaster amongst natural calamities in India. With changing climate patterns and increasing instances of heavy rainfall in urban areas, it is crucial to protect your car from flood-related damage. A standard four wheeler insurance policy may offer limited coverage, but with the right add-ons, you can ensure better financial protection.

Best car insurance add-ons to protect against flood damage

Not all car insurance policies provide comprehensive protection against natural calamities. To safeguard your car specifically from flood damage, consider including these essential add-ons in your four wheeler insurance policy:

1. Zero depreciation car insurance:

This is one of the most recommended add-ons, especially in flood-prone regions. A zero depreciation car insurance policy ensures that you get the full claim amount without any deduction for depreciation on replaced parts. In the case of water damage to metal, rubber or plastic components, this can be a huge cost-saver.

2. Engine protect cover:

Floods can severely impact the engine — the most expensive part of your car. If water enters the engine, repair or replacement can cost a fortune. The engine protect cover ensures your insurer pays for damages arising out of hydrostatic lock or engine seizure due to water ingress.

3. Roadside assistance:

Being stranded in the middle of a waterlogged street is not just inconvenient but also dangerous. A roadside assistance add-on can help you with towing services, battery jump-starts and other emergency help when your car breaks down due to floods.

4. Return to invoice cover:

In cases of total loss or theft, this add-on ensures that you receive the invoice value of the car, not just the depreciated IDV (Insured Declared Value). If your car gets irreparably damaged in a flood, this helps cover the full purchase price, including registration and road tax.

5. Consumables cover:

Flood damage often affects consumables like lubricants, brake oil, engine oil and nuts and bolts. This add-on ensures reimbursement for such items, which are usually not covered under a standard policy.

Steps to overcome flood damage to cars

If your car is already exposed to flooding, here’s what you should do to minimise damage and increase the chances of successful claim settlement:

1. Don’t start the car:

Turning on the ignition after water exposure can cause more damage, especially to the engine. Avoid starting the car and disconnect the battery if possible.

2. Document the damage:

Take photos and videos of the waterlogged surroundings and the affected areas of your vehicle. This evidence will help support your insurance claim.

3. Inform your insurer immediately:

Contact your insurance provider as soon as possible. Most insurers offer quick claim registration and assistance through their apps or customer care services.

4. Arrange for towing through your insurer:

Avoid towing the car on your own. Use the towing service arranged by your insurer to ensure the claim is valid and damage during transit is minimised.

5. Visit an authorised service centre:

Have your car inspected and repaired at a network garage approved by your insurance provider. This ensures cashless repairs and quality assurance.

6. Check your policy coverage:

Before the rains arrive, review your car insurance policy. Ensure it includes vital add-ons like zero depreciation car insurance and engine protection cover to stay fully prepared.

Conclusion

Flood damage can strike unexpectedly, but with a four wheeler insurance policy and the right add-ons, you can protect your vehicle from financial and mechanical setbacks. Take a proactive step today and upgrade your car insurance to ensure peace of mind, no matter the weather.

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

Winter driving can be tough with low visibility on greasy roads. Moreover, harsh climatic conditions in the winter season can test your driving skills, even if you’re a seasoned driver. Furthermore, foggy days bring in poor visibility and hence you need to be extra vigilant and cautious while driving under under challenging winter road conditions.

Inclement weather coupled with dangerous driving and flouting of traffic rules have added to the rising count of fatal road accidents in recent years. Here are the top tips that will help you stay safe on the road and avoid the possibility of any mishap while driving in snow and winter weather:

• Lane Driving is Safe Driving

It’s always dangerous when a driver suddenly switches lanes and that too on a greasy, snowy road can be even more menacing. So, make sure you stick to a single lane while driving in snow or winter road conditions with limited visibility to reach your destination safely.

A sudden change of lane can startle the other drivers, leaving very little reaction time and can easily lead to collisions, often fatal ones. Avoid accelerating aggressively to overtake on slippery roads during the winters and when it is snowing so that nothing unexpected occurs abruptly.

• Blink Your Indicators

All those fancy lights on the exterior of your car are there for a reason and not only to jazz up your ride. When driving in winters, or snowy weather, make sure you always turn on the directional indicators before turning left or right.

While driving in snow or very low temperatures, it is extremely important to give indicators as it isn’t just about safety but also a roadside courtesy that you’d also like to be extended.

It is also advisable to let your indicators blink all the time when you are driving in these tough winter road conditions with low visibility. This will help the cars behind you gauge the appropriate distance to avoid collision on slippery winter roads with sharp turns.

• Keep Your Windows & Windshield Defrosted

Clean your windows and windshield inside and out at regular intervals to ensure that you have the best visibility while driving. One of the perils of winter driving is the fogging up of the windshield and windows from the outside. This severely limits visibility and can lead to accidents.

During the winter season, it is important to immediately get rid of the fogged-up windshields without ending up creating a mess of smudges. Go for fresh dry air intake by lowering down your windows for a while as the air in your car is already humid which further adds up to windshield fogging.

Hence, periodic cleaning is a must to maintain a decent vision of the road ahead and the traffic around you.

• Watch The Road

SIt gets difficult to control your car while driving in snow as it skids. So, enhance your winter driving tips to deal with the skids. Aim for where you want to go and not where your car wants to take you. This will help you keep your wheels pointed towards the path you want to take.

When driving in winter road conditions, make sure that you are aware of your surroundings and maintain an adequate distance between your car and the one in front of you. Vigilance is the key and following this tip will also give you enough time to react in case of an emergency and avoid traffic accidents

• Avoid Speedy Driving

Sure we all want to burn some rubber and feel the thrill of going over 100 km/h. But this stunt in winter driving is a strict NO! And also generally inadvisable... Winter is all about fog and low visibility on snowy or greasy roads and hence you should keep an eye on the speedometer.

Driving at low-speed allows you to have a better reaction and stop time.

There might be instances when you might think that there’s no vehicle ahead of you. However, take into account the low visibility and keep your speed in check to avoid any unfortunate surprises. Refrain from accelerating aggressively!

• Keep Headlights on Low-Beam

While winter driving, make sure your headlights are on low beam, even in the daytime. While it might seem like a good idea to use high beams, it does just the opposite. High beams tend to reflect the fog and further diminish your visibility.

Also, driving with high beams creates a lot of discomfort for oncoming drivers and can prove extremely dangerous for them as they are nearly blinded by the high-intensity light. Driving in winter weather is not only about your personal safety but also the safety of fellow drivers.

• Use Winter Tyres

Make sure your car has the right set of tyres that provide you with the much-needed traction on the slippery roads during the winter season or when there’s snowfall. Tyres with adequate tread will provide you more grip, while poor tyres will not clasp when driving in snow.

Winter season-specific tyres offer considerable safety in the winter road conditions and are cost-effective as well. Amongst the top tips for driving in the snow is to have winter tyres. They come with extra deep treads that have the quality of dispersing more water. This aids in diminishing aquaplaning or hydroplaning of tyres and thus provides greater hold while driving in winter weather.

Conclusion

Before winters arrive or before visiting an area prone to snowfall, keep yourself, your loved ones and fellow drivers safe by following these tips for safe winter driving. Also, make sure you have a valid car insurance policy to keep monetary troubles away in case of an unfortunate mishap while driving in the snow or winter road conditions. In addition to that, have third party car insurance to avoid any financial burden that may be caused by third-party claims due to accidents. Remember, the best way to stay safe during severe winter weather is to avoid driving altogether if possible, but if you have to, it is best to be prepared.

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

Car insurance is an essential financial safeguard for vehicle owners, offering protection against accidents, theft and damages. However, if you drive responsibly and do not make any claims during your policy tenure, you become eligible for a No Claim Bonus (NCB)—a reward in the form of a discount on your car insurance premium. The NCB is an excellent way to reduce the cost of your car insurance renewal while promoting safe driving habits.

In this blog, we will discuss the IRDAI norms for NCB, its benefits, calculation methods and whether it can be transferred or protected.

IRDAI norms for NCB

It is mandatory for car owners in India to buy a car insurance that takes care of third party damages. However, a policy that takes care of own damages becomes a necessity. These package policies are expensive, but the no claim bonus feature offers attractive discounts on the premiums.

What is a no claim bonus?

A no claim bonus (NCB) is much like a reward for prudent use of the vehicle and adhering to the rules of the road. It allows the insured a discount on the premiums if no claims are drawn from the car insurance or two wheeler insurance policy . This discount increases every year, provided, the claim has not been made yet. In other words, the safer you drive, the less you will have to pay in bike or car insurance premiums!

However, this discount is applicable only on the Own Damage premium, and not on Liability premium.

What are the NCB discount rates?

The no claim bonus feature gets you discounts in the premium ranging from 20% - 50%. However, the discount rates are dependent on the age of the policy and when the last claim was made.

Benefits of NCB

Given below are a few benefits of NCB:

1. Lower Premium Costs – If you buy a car insurance online, NCB decreases the cost of renewal premium significantly.
2. Encourages Safe Driving – Policyholders are motivated to drive responsibly and avoid unnecessary claims.
3. Transferable – NCB can be carried over even if you sell your car and buy a new one.
4. Long-Term Savings – Over time, NCB accumulation leads to substantial savings on insurance premiums.

How is NCB calculated?

The calculation of no claim bonus in car insurance is straightforward and depends on the own damage premium of the policy.

For example, if your car insurance premium (excluding third-party cover) is ₹20,000 and you have a 35% NCB:

NCB Discount = 35% of ₹20,000 = ₹7,000

Thus, your premium payable would be:

₹20,000 - ₹7,000 = ₹13,000

Can the no claim bonus be waived?

Yes, the no claim bonus can be waived on the following occasions:

1. If a claim has been made
    Any claim made from the policy resets the bonus to zero. This is followed, regardless of the size of the claim, or even if the claim was made because of theft of the vehicle.
2. Expiry of policy
    The no claim bonus will be cancelled if the policy has been expired for a span of over 90 days.

Can the NCB be protected?

Regardless of when you make the claim or how big it is, the NCB will be reset to zero if you make any claim at all. In order to ensure that the bonus is not waived after small claims, the NCB protect add on can be bought. By paying for the add on, making small claims will not affect the bonus at all. However, these claims should stay within the predetermined limit.

Can the NCB be shifted to other motor insurance policies?

In case you want to change your insurance company, the no claim bonus can be shifted to the new motor insurance policy you buy. However, you should produce sufficient proof of the NCB of your previous policy and ensure that no claims were made. The no claim bonus can also be transferred from vehicle to vehicle.

Conclusion

The No Claim Bonus in car insurance is a valuable feature that rewards responsible vehicle owners with lower premium costs. By avoiding unnecessary claims and renewing your car insurance online on time, you can enjoy significant discounts and long-term savings. Additionally, taking advantage of NCB protection plans ensures that you don’t lose this benefit even if you make minor claims. To maximise your NCB, always compare policies and choose the best plan that aligns with your driving habits.

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

Usage-based insurance has the potential to radically change the insurance industry

Car insurance now sold by general insurance companies in India is one-size-fits-all product. It does not differentiate between driving patterns that range from high risk to low risk. The time has come for insurance companies to hop onto telematics-driven, usage-based insurance.

You would have heard of investigators searching for the black box after every aircraft crash. The black box records all the technical and voice data while the aircraft is in flight. That piece of instrument is key to demystifying every crash or accident involving an aircraft.

In usage-based insurance, a similar mechanism is installed in a car to record braking history, acceleration pattern, time of the day a vehicle is driven, the road taken etc. The big difference, when compared with the black box in an aircraft, is that the car driving history is not just recorded but through use of telematics is relayed live to the insurance company.

In the near future, a car bought in India will come with a black box, on-board sensors, a dongle or a mobile phone app, and internet connectivity that would make it a connected car -- the car connected to other devices at home, office, other cars, and your insurance company.

What is Usage-based Insurance?

Usage-based car insurance made a debut about a decade ago in Europe and North America. Driving information is accessed online or on apps, which allows customers to monitor their driving patterns and improve their driving habits to earn discounts on insurance premium. Insurance companies offer mileage-based, and driving habits-related discounts.

Usage-based insurance is alternatively called Pay As You Drive (PAYD) and Pay How You Drive (PHYD). All the data that telematics will transmit to insurance companies will power greater data analytics and offer driver’s insurance options such as Manage How You Drive (MHYD). The number of drivers in the US and Europe opting for usage-based insurance is estimated to touch 100 million by 2020.

Car owners are likely to opt for usage-based insurance as it not only offers lower premium for low-risk driving, but it will also encourage safe driving and prevent high number of deaths due to road accidents.

Driving a car in a highly-populated city teeming with traffic is not easy. But it does more than just waste time and cause inconvenience, it also affects your car’s mileage and efficiency, which in turn raises your fuel bills. Here are a few simple and effective tips to maximise your car’s mileage.

Keep Your Tyres Inflated

Not only do properly inflated tyres reduce fuel consumption, they also increase the efficiency by 5 percent. You should get your car tyres inflated regularly and once in fifteen days is an ideal interval. However, overinflated tyres are just as bad as under-inflated ones, and thus you should stick to the manufacturer recommended levels.

Maintain the Speed Limit

Maintaining a steady speed limit between 45–55km/h is recommended not only for your safety, but also for saving on fuel consumption. By maintaining a steady speed limit and going easy on the throttle, you will see a rise in the fuel efficiency of your car by around 20 percent.

Lose the Weight

The amount of things you store in your car has a direct effect on its mileage and fuel efficiency. So get rid of the child safety seat you don’t need anymore, that worn out spare tyre and all the junk you’ve stored in the trunk. Drive around baggage-free at least while within city limits.

Roll Up the Windows

At high speeds you should roll up your windows. Even partially open windows at high speeds can impact fuel efficiency by increasing the drag and resulting in rapid fuel consumption. Opposed to popular belief, rolling up your windows and switching on the air conditioner at higher speeds will help you save fuel.

Plan a Smart Route

Before you start your trip, take 2 minutes to check the maps and plan your route. This will not only be beneficial for your mileage but will also save you from the chaos of traffic and congestion; your left foot will thank you too.

Turn the Engine Off

When you keep your engine on while your car is static, you are just burning fuel. Whenever you have to stay in one place for over 3 minutes, whether it’s at a signal or waiting for someone, turn off your engine. However, if you think the wait is going to be short, don’t turn the engine off as starting it back on will only consume more fuel.

How many times has it happened that it began pouring and your car didn’t demand to see a mechanic for repairs? Come monsoon; cars tend to need some kind of repairing or the other, thereby, making you shell out quite a bit on them. But, did you know that timely car servicing coupled with some car maintenance tips can actually help you avoid some of these expenses? Additionally, having a valid car insurance policy can help you avoid financial losses. Take notes as we compile them below to get your car monsoon ready!

1. Examine your car tyres

Check them for any signs of wear out. Today, most of the car tyres come with tread-wear indicators, and if those on your car tyre wear out, it’s time for you to have them replaced. Tyres with good tread depths are important in avoiding oversteer. They let you have a firmer grip on roads, helping you stay secured against aquaplaning when you come across potholes or spilt oil mixed with water while driving.

While you may keep a spare tyre handy, it is important to check the condition of the spare tyre as well. Look for any punctures and check the air pressure.

2. Check the wipers and their washer tank

Wiper blades do the crucial job of wiping the water away from the windshield during rains. But they are usually not used for most of the year, making dirt and grime to accumulate on them. Plus, the summer sun can be harsh on them, causing them to wear out. So check for their proper functioning, and give the blades a proper cleaning with soap water. If you find that the blades have worn out, get them replaced. Also, if the washer liquid has run down, refill using a washer liquid solution or soap water.

3. Insulate the wires and check the electricals

If there is one thing that reacts adversely to rain than mechanical parts, then it’s electricals. Make sure that all the wiring is well insulated and is in proper working condition. If you find any loose wires, connect them firmly together. Check for other electrical systems like fuses and lights. Replace the non-functioning ones. Also, it is utterly necessary that especially the battery is in peak working condition because during monsoons headlamps, wipers etc. are all being utilised to their full potential, causing it to drain out too soon.

4. Test the brakes and check the brake fluids

Brakes are very important in the rains because of the slippery nature of roads. Check the brake fluid to see that it is at the required level, if not, then you’ll have to top it up. Go to a workshop to get the brake pads and discs checked. If the pads are worn out, they won’t provide enough braking power.

Same goes for the disc; a glance can tell you if it is okay or not. If the disc has a very shiny or glazed look, then it needs to be replaced, as the pads will not be able to slow down the car due to lack of friction.

5. Clean the air filter

Your car’s air filter aids your car’s engine to function uninterruptedly. But in the monsoon, due to high humidity level and more dust, the air filter has to put in extra effort in supplying your car engine with pure air. So make sure you clean the air filter in your car and check it for proper functioning beforehand.

While the air filter is one way of protecting the car’s engine, yet another is to secure it with the Engine Protect add-on cover of our Car Insurance policy. It will have your back for any consequential loss to your car’s engine. It will also compensate for the loss arising out of water ingression, engine damage due to oil leakage and gearbox failure. Thus, going out of its way to protect your car’s engine and keeping you from spending on costly car engine repairs.

Also read:  How to maintain your car’s health during the lockdown

Updated on 2 Dec 2025

The motor insurance industry in India has been evolving rapidly, especially with the adoption of digital tools that simplify processes for policyholders. One of the most notable innovations in recent years has been the introduction of mobile-based self-inspection solutions. These solutions aim to make the process of policy renewal, claims initiation and verification quicker and more convenient for customers.

This article explores the concept of mobile self-inspection for cars, its benefits, how it works and why it is relevant in today’s insurance industry. It also clarifies who can use this feature and answers some commonly asked questions.

What is mobile self-inspection?

Mobile self-inspection is a technology-driven feature that enables car owners to conduct the inspection of their vehicle themselves, using their smartphone.

Inspection is mandatory when a car insurance policy lapses, and it causes a delay in the issuance of the renewed policy. Normally, the insurer initiates a process called ‘Break-In’ when a customer applies for renewal of a lapsed policy. In this process, an inspection by authorised surveyors is carried out, and the policy is issued based on a satisfactory inspection.

However, with the ‘Mobile Self-Inspection’ feature, the time taken for renewal of a lapsed policy reduces to a few hours from 2-3 days. This feature has made the renewal of lapsed policies an easy and stress-free process for customers.

Key benefits of mobile self-inspection for car owners

Below are some of the key benefits of mobile self-inspection:

• Time efficiency: Instead of waiting for a surveyor appointment, car owners can carry out the inspection whenever it is convenient.
• Accessibility: A smartphone with a functioning camera and internet connection is usually sufficient to complete the process.
• Faster policy activation: When renewing a third-party or comprehensive car insurance plan, mobile self-inspection allows the process to be completed quickly, resulting in faster policy issuance.
• Reduced paperwork: The entire process is digital, minimising the need for physical forms or documents.
• Convenience: The self-inspection can be carried out from the customer’s home, workplace or any other preferred location.

How does ICICI Lombard’s mobile self-inspection work?

To do a mobile self-inspection of your car, download or update the ‘Insure’ app and ensure you have a good internet connection and a camera with at least 3MP resolution. Carry out the inspection in daylight and avoid closed parking areas.

Record the video in the given order: engine and chassis number, front, back, side, odometer and damage. The app also contains a demo video for step-by-step guidance of the ‘Mobile Self Inspection’ process.

Make the video between 9 am and 4 pm, Monday to Friday, for same-day status. You can discard and retake the video if needed, but it cannot be paused. If the process stops midway, start a new video.

The video will be approved as per ICICI Lombard’s underwriting guidelines, and after which the policy will be generated within a few hours. After uploading the video, the status can be checked in the ‘My Policy’ section on the website or in the app.

Why this feature matters in today’s insurance industry

Customers increasingly expect instant services and minimal physical interactions, particularly since the COVID-19 pandemic highlighted the importance of remote and contactless processes.

This feature matters because:

• It enhances customer experience by saving time and reducing dependency on third-party surveyors.
• It allows insurers to streamline operations and manage inspections at scale.
• It supports faster processing of renewals and claims, a key expectation among digitally-aware consumers.
• It helps reduce operational costs, which in turn can contribute to overall efficiency in the industry.

Who can use mobile self-inspection?

Mobile self-inspection is commonly used during policy renewals, especially if the motor insurance has lapsed or there is a gap in coverage. In some cases, insurers may also allow self-inspection for claims processing to assess minor damages.

It is important to note that eligibility, required documentation and specific steps vary by insurer. Policyholders should always check the policy wording or reach out to their insurer’s customer service for clarity.

Conclusion

By enabling customers to complete the inspection process themselves using a smartphone, insurers are making policy renewals and claims initiation more accessible and efficient. For car owners, this can translate into faster turnaround times, greater convenience and reduced dependency on in-person appointments.

If you have questions about eligibility or the inspection process, simply fill out the form on this page to get tailored guidance from our team.

FAQs

•  What is the difference between a physical car inspection and a mobile self-inspection?

A physical car inspection requires a surveyor to assess the vehicle in person, whereas mobile self-inspection allows the car owner to capture and submit images and videos digitally through a mobile app or portal.

•  Is mobile self-inspection available with all insurers?

No, the availability of this feature depends on the insurer. Some insurers offer it as part of their digital services, while others may still require a physical inspection.

•  What documents are required for mobile self-inspection?

Generally, documents such as the vehicle registration certificate may be needed. The specific documentation requirements differ by insurer, so it is best to check the policy wording.

•  Can mobile self-inspection be used for claim settlement?

In some cases, yes. Certain insurers allow mobile self-inspection for assessing minor damages during claims. However, the applicability depends on the insurer’s processes and the nature of the claim.

•  Does mobile self-inspection affect the no-claim bonus (NCB)?

Mobile self-inspection itself does not impact NCB. The effect on NCB depends on whether a claim is filed and on the insurer’s policies. It is advisable to review the policy wording or consult the insurer directly.

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 31 Oct 2025

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

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

What is a VIN or chassis number?

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

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

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

Where can I find the VIN?

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

Here are additional areas where you can find your VIN:

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

 You can also find the VIN in the listed documents:

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

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

What do the numbers and letters in a VIN mean?

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

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

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

What if the VIN is not 17 characters long?

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

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

Is it possible to check for it online?

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

Here is how to check the VIN on VAHAN:

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

Conclusion

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

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

FAQs

•  Is the engine number and VIN the same?

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

• Is sharing my VIN safe?

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

• What if my VIN is altered?

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

• Does every insurance company require a VIN?

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

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

Driving your own vehicle may provide immense pleasure to you. Apart from signalling the new-found independence and financial stability, it reflects your pride and status. However, regardless of the reason, purchasing a new car or two-wheeler also brings along certain legal responsibilities with itself.

Before the wheels are in motion, the law requires you to have a valid driving license and a motor insurance plan for your vehicle. While the former is obvious, a car insurance or bike insurance policy is mandatory since it covers you against the third-party liabilities that you may incur while driving on-road, apart from securing your newly-purchased machine against damages and mishaps.

Similarly, you need to obtain the Registration Certificate (RC) of your vehicle from the registration authorities under the Public Vehicles Department of India. As per the 2017 amendments to The Motor Vehicles Act of 1988, driving an unregistered vehicle without proper registration address is illegal and considered a punishable offence.

What is Vehicle Registration?

Registering your vehicle with the Regional Transport Office (RTO) of your area is mandatory under the Motor Vehicles Act. It includes the process of imbibing the credentials of your vehicle in government records after its due verification. It helps in establishing a link between the motor vehicle and the owner of that vehicle.

As per the law, a car, two-wheeler or any other type of vehicle must have two high-security registration plates (HSRPs) installed at the front and back of the vehicle. If one of these number plates are missing, then the vehicle-owner or driver can be fined by police or other authorities.

These HSRPs contains the registration number of the vehicle in modern Hindu-Arabic numerals with Latin letters, as prescribed by the RTO. The registration number of the vehicle follows a specific format. For instance, if the number plate reads ‘MH O4 EG xxxx’, the break-up of it is as follows:

• ‘MH’ are the initials of the state in which the vehicle is registered. In this case, ‘MH’ stands for Maharashtra.
• ‘04’is the code of the Regional Transport Office (RTO). In this case, it represents the Thane and Mulund region of Maharashtra.
• ‘EG’ are two letters which represents the series of alphabetical order in which all the cars are registered within the specified RTO.
• ‘XXXX’ is the four-digit unique registration number allotted to the vehicle.

You can even opt for customized registration numbers by paying a supplementary fee to the RTO. Additionally, the RTO also holds an auction for classic or fancy numbers as well.

Why is it Important?

Registering your vehicle is mandatory under the law and is also essential for establishing the proof of ownership of your vehicle. It is required for the purpose of sale of the new vehicle or for the transfer of ownership of the vehicle when you plan to resell it. Cars and two-wheelers with proper vehicle registration are only permitted to ply on Indian roads.

How to obtain the registration number of your vehicle?

As soon as you purchase a new vehicle, the dealer applies for its registration at the local RTO. Upon the receival of an application to register a vehicle, the RTO provides a temporary registration number so that the vehicle can be driven on road for RTO visits and other official errands. After the issuance of temporary registration number, you will be provided a permanent registration certificate within a month or so, confirming the ownership of the vehicle in your name.

The registration certificate for a newly purchased vehicle is valid for 15 years and then it has to be renewed every 5 years. In case you’ve to move to another state or union territory, you can drive your vehicle with the previous registration address for a maximum of 12 months, post which you need to re-register it with the local RTO.

How to Change your Vehicle Registration?

Under special circumstances such as the one mentioned above, you may have to re-register your vehicle with the new RTO and apply for the change in its registration address. For this, you need to visit the local RTO, where you want to transfer the vehicle, along with the following documents:

• Application in Form 33
• Original Registration Certificate
• Proof of new address
• Valid motor insurance certificate
• Pollution under control certificate
• No Objection Certificate (NOC) from the original RTO
• Attested copy of PAN card or Form 60 and Form 61 (as applicable)
• Chassis & Engine Pencil Print
• Signature Identification of owner

Updated on 27 Nov 2025
Purchasing a second-hand car or bike is an excellent way to save up funds. However, before you make the payment and take the keys, it's crucial to check the documents. When purchasing a used vehicle, the papers are just as essential as the vehicle itself. Without proper documents, you could face legal issues later on, be held accountable for things the previous owner did or even lose ownership rights.

In this blog, we will guide you through the documents you need, particularly the ones you need to submit to the RTO.

Forms to submit to the RTO

Once you have found a second-hand car or bike you want to purchase, and both parties have agreed on the price, it's time you begin the legal work. The seller and the buyer must visit the RTO and submit several forms. All these forms make the transfer of ownership official. Now, let’s take a look at them:

1. Form 29: Notice of transfer of ownership

Form 29 is a notice to inform the RTO that the current owner is selling the vehicle. It has to be filled out and signed by the seller. This particular form is submitted in duplicate (2 copies). It tells the RTO that the vehicle is being handed over to the new owner.

2. Form 30: Report of transfer of ownership

Form 30 is to report the transfer of ownership to the RTO. It's a follow-up to Form 29 and is submitted by the buyer. This form needs to be submitted within 14 days of the sale. It proves that the buyer is now responsible for the vehicle.

3.  Form 28: No Objection Certificate (NOC)

This form is required only when the vehicle is being moved from one RTO jurisdiction to another (for instance, if the car is bought in Bangalore but will be used in Delhi). It's also necessary if the vehicle is under a loan and it's registered in a different state. The seller should get this form signed by the previous RTO to confirm that there are no criminal cases or pending dues on the vehicle.

4. Form 35: Termination of hypothecation

If the bike or car was bought on a loan, the seller must provide a Form 35 and a letter from the bank stating that the loan has been fully paid and the hypothecation (loan agreement) has been cancelled.

5. Valid Pollution Under Control (PUC) certificate

This particular certificate shows that the vehicle satisfies the pollution control standards. It’s mandatory to have a valid PUC certificate at the time of the sale. The buyer must ensure that this certificate has not expired.

6. Valid insurance certificate

A vehicle cannot be transferred or driven on Indian roads without insurance. The two or four wheeler insurance should be valid at the time of the sale. After making the purchase, the buyer must transfer the insurance to their name.

The role of registration certificate when you buy a used car

The RC (Registration Certificate) is one of the most crucial documents when purchasing a second-hand vehicle. It proves who the legal owner of the vehicle is and includes certain important details, such as:

• Owner’s address and name
• Vehicle registration number
• RTO where the vehicle is registered
• Engine number and chassis number
• Registration date
• Vehicle class (commercial, private, etc.)
• Fuel type (CNG, diesel, petrol, etc.)

The RC must be original and not a photocopy. When purchasing a used vehicle, check that the RC matches the vehicle in every way. Make sure of the following things:

• There are no signs of forgery or tampering.
• The chassis and engine numbers on the RC match the ones on the vehicle.
• The name of the owner matches the seller’s ID proof.

Apart from that, you should also confirm that the RC does not mention any hypothecation/loan, or if it does, the seller should clear it and submit Form 35. If not, the vehicle still technically belongs to the bank. Once you purchase the vehicle, the RC needs to be transferred into your name. You must also submit the required forms to the RTO, which include Forms 29 and 30, along with the following:

• Original RC
• Copy of your address and ID proof.
• PUC certificate
• Passport-sized photographs
• Copy of a valid insurance

The RTO will update the RC and then send a new one with your name on it. This is your proof that you are now the legal owner. If you lose the RC before the transfer is completed, it will be difficult to prove ownership, and you might face issues in insurance claims, using the vehicle on the roads and even selling the vehicle in the future.

Conclusion

Purchasing a used bike or car is a wise choice, but only if the paperwork is in order. Always check the pollution certificate, insurance and registration certificate and then submit the required forms to the RTO on time. This will ensure you become a legal owner and avoid all future issues. With the correct documents, you can enjoy a new vehicle with no hassle.

While you take care of the legal matter, let us help you stay protected on the road. For helpful comprehensive or third party car insurance advice, just fill out the form on this page. We will guide you with the correct options based on your needs.

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

Updated on 10-04-2025

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

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

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

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

Here are the key steps to follow:

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

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

Documents Required to Transfer Car Insurance to New Owner

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

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

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

No Claims Bonus in Car Insurance Transfer

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

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

Documents Required for NCB Retention Letter

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

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

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

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

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

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

What Happens if the Car Insurance Transfer Remains Incomplete?

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

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

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

Why Do You Need to Transfer Car Insurance?

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

FAQs

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

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

2. Can I transfer RC without transferring vehicle insurance?

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

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

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

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

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

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

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

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

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

7. Can I get an NOC online?

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

8. What is the cost of transferring vehicle ownership?

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

Conclusion

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

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

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

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

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

Use of telematics for premium calculation

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

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

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

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

Installation of dashboard cameras for maximum car security

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

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

Smartphones apps for every insurance-related help

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

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

Use of blockchain technology

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

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

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

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

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

• Mandatory Motor Insurance:

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

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

• Vehicle Recall:

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

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

• Road Accident Compensation:

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

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

• Legal Protection for Good Samaritans:

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

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

• Increased Penalties:

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

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

Traffic Violations & Increased Penalties

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

• Insurance Cover – Top Priority

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

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

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

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

Importing a car into India can be an exciting prospect, especially for automobile enthusiasts looking for specific models not available in the domestic market. However, the process involves several regulations, documentation, and costs that must be carefully understood before making a decision. In this blog, we’ll highlight the key things you need to know to ensure a smooth and compliant car import experience in India.

When can you import a car?

You are allowed to import a car in India only under the following circumstances:

• If Indian companies do not manufacture the car.
• If the car is not registered in any other country, under any of their laws.
• If the car is not leased or loaned at the time of importing.

The type of car you can import

It’s important to know that importing a car in India is permitted only through certain customs ports. They are as follows:

• Mumbai
• Nhava Sheva
• Delhi Air Cargo
• Chennai
• Kolkata
• Cochin
• Tughlakabad

Who can import vehicles to India?

The following groups are allowed to import vehicles under government rules:

• NRIS: As an NRI wishing to come back to India permanently, you can bring in a car under some terms and conditions.
• Foreign embassies and diplomats: Embassies and diplomats don’t have to pay import duty on cars if they get the required clearances.
• Charitable and religious organisations: These organisations can import foreign donated vehicles if they have obtained pertinent documents and licences.
• Legal heirs: If your overseas relative is no longer alive and left a vehicle behind, the legal heir of the deceased person in India may import the vehicle.
• Automobile producers: India's vehicle producers or vehicle developers can import cars for development, testing or homologation.
• Government institutions: Government institutions or research and development institutions can import official vehicles or vehicles for scientific purposes under special schemes.

Things to note when importing a car via a dealer

You can always seek the help of a dealer to import your new ride to India, which will make the process easier and quicker. However, to do the same, you need to follow certain guidelines as listed below:

• Get the Road Worthiness Certificate issued by any testing agency in the country. This ensures that your importation certificate complies with Rule 126 under the Central Motor Vehicle Rules, 1989.
  
  
• While importing the car, you must submit written proof that confirms the compliance certificate, as required under Rule 126 of the Central Motor Vehicle Rules, 1989, will be submitted within six months of the importation process.

Procedure and documents required

Once you’ve confirmed that you’re eligible to import a car, the second half is doing so using the right procedure and with the right documents:

• Import licence: If the vehicle is not freely importable, obtain an import licence from the Directorate General of Foreign Trade (DGFT).
• Bill of lading: A carrier-confirmed freight document containing minimal shipment information and serving as proof of car ownership.
• Clearance customs: Car clearance under inspection at the proper customs port and payment of commensurate import duties.
• Vehicle invoice and purchase documents: Used as proof of car value, purchase details and customs valuation.
• Roadworthiness certificate: To ensure the vehicle's safety, obtain this certificate from a certified import agency in the country of import.
• Compliance certificate (Rule 126 CMVR): Before registering the vehicle, you must submit a signed statement that you’ll get a compliance certificate from an Indian test lab (as per Rule 126).
• Insurance cover: You must purchase car insurance before you can drive your imported car in India. It ensures you are financially protected against accidents, theft or damage.
• Registration in India: Once the customs clearance formalities and conformity testing are done, the car must be registered in the Regional Transport Office (RTO). Your new registration number certificate will be provided to you.

Import duties on cars

This can be one of your main concerns while importing a car in India. The following are the applicable import duty rates for importing a car in India:

Exceptions

The rules and procedure for the import process, as explained abovee will differ in a few of the cases stated below:

• If you are an NRI
• If the car belonged to a deceased individual residing abroad
• If you’ve won the vehicle as an award or gift in any event or competition
• If you are a differently abled person
• In case the car is awarded to a charitable or religious institution

Frequently Asked Questions

• Is a second-hand car importable to India?

However, second-hand cars are subject to higher import duties and must meet Indian safety and emission norms.

• Can I import a left-hand drive vehicle?

India only permits right-hand-drive vehicles in general. Left-hand-drive vehicles are not permitted except when imported for specific purposes, such as research work or exhibition.

• Is there a maximum age limit for the vehicles that I can import?

Yes, used imported vehicles should be under three years old and conform to Indian road standards and safety norms.

Conclusion

One can import a vehicle to India, provided an individual is eligible and does the right thing in line with the law. One should be cautious from the time they receive the correct documents to the customs and RTO regulations. Finally, don't forget to ensure your vehicle has a proper comprehensive car insurance policy to protect against damage. So, your beloved vehicle will be safe, insured and roadworthy right when it reaches the country.

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.