There may be situations where you might want to cancel your car insurance policy. In such cases, there might be a certain amount of money that you might have to pay to your insurance company as fees. Whether or not the fee is charged will depend upon the time when you cancel your plan.

For instance, if you cancel your policy during the term of the insurance, a fee will be charged. If the annual premium has been paid and there is still time left on the policy, then the insurer will be responsible for reimbursement of your premium amount on cancellation.

Reasons for Cancelling a Car Insurance

There may be various reasons why you would want to cancel your insurance policy.

1. Selling the Car: If you want to sell your car, the old insurance will serve no purpose, and you will have to get it cancelled.
2. Switching Insurance Provider: You may be planning to change your car insurance provider for better coverage or a lower premium rate.
3. Moving to a Different Place: Vehicle owners relocating to a different state or city may need to switch their insurance provider.

There could be other reasons too, such as theft of your vehicle, disposal of your car due to the age of the vehicle, and dissatisfaction with your insurance company due to various reasons such as a high premium, stringent policy clauses, lower sum assured, or some similar reason.

Process of Cancelling a Car Insurance

Having an auto insurance policy is imperative for everyone who owns a car. If you choose to apply for cancellation of the existing policy for any reason, you must buy another one after that to stay legally compliant. 

These are the steps to follow for the cancellation of a car insurance policy-

1. To begin the process of cancellation, intimate your insurance company about your decision to cancel the policy in writing. This will set the cancellation process in motion, with the entire procedure taking not more than 15 days.
2. Follow the guidelines provided by the insurance provider.
3. Sign the documents stating that you have opted for cancellation.
4. Once the cancellation process is completed, the insured will receive a letter confirming that the policy has been cancelled; any pending dues to be refunded by the insurer will also be mentioned in this letter.
5. You will also need to follow up with your insurer to collect the Certificate of Insurance. This document will come in handy when you go for a new insurance policy.

Long-Term Car Insurance Cancellation

Car insurance policies spanning three to five years, known as “long-term insurance”, have specific requirements for the cancellation process. You need to keep these points in mind if going for long-term car insurance termination -

1. Pro-Rata Refunds

If the policy is cancelled within a free look-up period, the insurance provider may refund the premium for the unused period after removing the cancellation fees.

2. Policy Transfer

In case you are selling the vehicle, you might be able to transfer the policy to the new owner.

3. No-Claim Bonus (NCB)

The cancellation may affect the no-claim bonus provided by the insurance company. Consult the insurer to know if the collected NCB can be transferred to your new policy.

What are the Consequences of Not Purchasing a New Car Insurance Policy Upon Cancellation?

Unless you don’t have a car anymore, you will need to purchase a car insurance policy again. It is illegal to ply on Indian roads without at least third-party car insurance coverage.

If you fail to purchase a new car insurance policy for your vehicle, you may face the following consequences-

1. Legal actions, including fines, suspension of licence, or imprisonment.
2. You will be liable to pay for the damages and repairs, which may be costly, leading to financial instability.
3. You may lose benefits such as a no-claim bonus if there is a a significant gap between the old and new policies.
4. Lapses in your insurance history indicate a higher risk to insurance providers, which may result in higher premiums when you apply for a new one later.

FAQs

1. Can I cancel my car insurance at any time?

Yes, most insurance providers allow you to cancel your car insurance policy anytime, with a cancellation fee.

2. Will I get a refund if I cancel my insurance mid-term?

Some insurance providers offer pro-rata refunds for unused coverages, but it is suggested to consult with the insurer to clarify these issues.

3. Can I cancel my car insurance online?

Yes, you can start the cancellation process through an email or the insurer’s website. However,  you may need to visit the insurance provider for some formalities.

4. What happens when I cancel my car insurance?

The insurance company usually provides you a refund for the unused amount of the policy. In some cases, a cancellation charge is also levied.

5. Is it mandatory to have insurance when I’m not driving my car?

Depending on the area, you may need an insurance policy, even for parked or unused vehicles.

6. What is the free look-up period in car insurance?

The free look-up period is the grace time given by the insurer during which the policyholder can review the policy terms and cancel the contract without any additional charges.

7. What documents are needed for transferring the insurance policy?

You need a new copy of the registration certificate or RC, Form 29 and Form 30, NOC from the previous policyholder, the policy document of the old car, a new application form, no claim bonus different amount, and a vehicle inspection report for insurance transfer.

Conclusion

Cancelling a car insurance policy is an important decision that needs careful planning and consultation with the insurance providers. Whether you are considering changing your insurer, selling the car, or relocating, understanding the process of terminating the policy is crucial. Ensure continuous coverage is provided by immediately applying for a new policy after the cancellation is completed.

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.

Amidst your busy schedules, renewing your motor insurance policy can easily slip your mind. Now-a-days, most insurance companies offer reminder facilities for policy renewal. However, if you still missed the date, it is important to contact your insurance provider as soon as you realize the slip. If the policy has just expired, you may be able to reinstate it without any penalty. Ensure you don't take your car out until you get a fresh policy.

The following steps will guide you through the insurance revival process:

Step 1: Get organized

If you failed to renew your motor insurance policy on time, get in touch with your insurance company and fix an appointment for the vehicle to be surveyed. Once the survey is satisfactorily completed you can go ahead and purchase the insurance policy.

Collect your previous policy documents and all claim-related papers. The insurer requires these papers to look into your claims' history and accordingly you will be entitled for a No-claim Bonus (NCB) on your new policy.

Step 2: Keep your vehicle documents handy

Equip yourself with your vehicle details. These include the city where your vehicle is registered or the RTO's address, first registration date, manufacturer's name and model details.

Step 3: Logon to the insurer's website

Avoid tedious paperwork and simply logon to the insurer's website with the documents and details ready at hand. Click on the online renewal option and fill in the details in the appropriate fields. You can renew your car insurance as well as two-wheeler insurance online, by following quick and simple steps.

Step 4: Fill and crosscheck details online

Make sure to fill in correctly the policy number, vehicle registration dates and other details. Before submitting these details, crosscheck them against the documents in hand to avoid miscommunication. On submission of the renewal form, you will receive a quote from the insurer.

Updated on - 31 Dec 2025

Handling a car accident can be stressful, especially if another person or their property is involved. In such circumstances, third-party insurance can provide you with financial protection. According to the law, car owners are required to carry third-party vehicle insurance. It covers legal liability for harm or property damage caused by the insured vehicle. For the settlement process to go well, it is essential to know how to file a claim properly.

This guide breaks down the crucial process, coverage, documentation and mistakes to avoid during third-party claims. With the right information, you can manage claims seamlessly and have peace of mind.

What is third-party car insurance?

Third-party car insurance is the basic type of car insurance that every vehicle owner in India must have. It’s required by law and helps you avoid trouble if your car accidentally injures someone or damages their property.

Let’s say you bump into another car or hit someone’s wall while driving. Third-party insurance will pay for the damage or injury caused to the other person. It’s like a safety net that protects you from paying big bills out of your own pocket.

However, this insurance doesn’t cover your own car. So if your car gets scratched or dented, or if it’s stolen, third-party insurance won’t help. For that, you’d need a comprehensive policy or own damage cover.

What’s covered under third-party motor insurance?

A third party (victim) can claim compensation for:

• Medical expenses for the treatment of injuries caused by the accident
• Compensation for physical disfigurement or disability
• Loss of earnings due to temporary or permanent disability
• Compensation to dependants in case of death due to the accident
• Third-party property damage, such as damage to their vehicle, building, wall, gate, shop, etc.

IRDAI cap:

• Property damage compensation is capped at ₹7.5 lakhs.
• If the court awards more, the extra amount has to be paid by the offending car owner.
• There is no cap on compensation for injury or death.

What is the claim process under third-party insurance?

Here is the complete process to file a third-party compensation claim:

Third-party motor insurance claim for disability, injuries or death:

• File an FIR at the nearest police station and obtain a copy.
• Collect the insurance and registration details of the offending vehicle.
• Once available, obtain the charge sheet filed by the police.
• Hire a motor claims lawyer and file a compensation claim at the Motor Accident Claims Tribunal (MACT).
  • MACT has exclusive jurisdiction over motor accident cases.
  • Claims can be filed in the area where the accident occurred or where the claimant resides.

In some cases, parties may explore an out-of-court settlement. While legally allowed, it is usually safer to go through proper legal channels.

Third-party car insurance compensation claim for property damage:

• Property damage refers to damage caused to the third party’s property.
• File an FIR and get a copy, along with the charge sheet once issued.
• File the compensation case in the local MACT.
• The tribunal will review the documents, hear from both sides and determine the compensation amount.

Documents required to raise a third-party insurance claim

You will need:

• Copy of the FIR
• Insurance policy documents
• Driving licence of the persons involved
• Vehicle RC
• Medical reports and hospital bills (injury cases)
• Repair bills/estimates (property damage cases)
• Photos or videos of the accident site

What can you not claim under third-party insurance?

• Damage to the offending vehicle
• Theft of personal belongings
• Accidents involving drunk or reckless driving
• Accidents in excluded geographical areas
• Intentional or malicious damage

Common mistakes to avoid while filing a third-party claim

A successful claim procedure requires you to avoid mistakes that could result in delays or even rejection. Make sure to avoid these:

1. Leaving the scene:

It is not wise to leave the scene of an accident. As a result, it may become very challenging to file a claim later on.

2. A First Information Report (FIR):

This is a crucial legal document that must be filed on time. As it functions as an official record of the accident, it is necessary for the settlement claims.

3. Admitting fault:

You can apologise. However, avoid offering an apology or admitting fault in a way that can be construed as taking responsibility. The entire claim procedure may become more complicated because of this action.

4. Not documenting:

Don’t forget to take immediate photos or a recording of the damage scenario. Collect witness details and preserve all relevant invoices and receipts. It can also help during court hearings.

5. Delaying communication:

If any incident occurs, notify your insurance company as soon as possible. Delays can lead to complications and even the denial of a claim.

6. Giving false information:

Ensure that every detail you state is accurate and correct. The basic information contains the incident’s date, time and location. Again, errors may result in the denial of a claim.

7. Accepting early statements:

Don’t sign any release documents or take a cheque from the insurance company too soon. The insurer may provide you with a cheque labelled “full and final settlement" throughout the claim procedure. Accepting this could be a mistake because the insurer may not be able to include further claims you want to make. Wait till you find the sum to be reasonable.

Why having the right car insurance plan matters

Choosing the right car insurance isn’t just about meeting a legal requirement; it’s about protecting yourself financially. A good policy acts like a safety net when unexpected incidents happen on the road. With the right coverage, you get peace of mind knowing that the financial and legal complexities of a third-party claim are taken care of.

It’s essential to understand exactly what your policy covers and how the claims process works, so you’re fully prepared in case of an emergency.

Conclusion

With diligence and adherence to a defined procedure, you can successfully file for a third-party claim. The key actions include documenting the incident, promptly notifying your insurance company and avoiding common mistakes. While you do so, remember that the Motor Accident Claims Tribunal (MACT) decides all the settlement responsibilities regarding harm and damage.

Understanding the legal structure related to third party car insurance can ensure your financial security and compliance. Adequate preparation and expertise are the ultimate way to achieve claim resolution. When you have experienced insurance professionals supporting you, managing tough situations becomes easier

Fill out the form on this page and receive personalised insurance advice that fits your requirements. With the right four wheeler insurance and a team to back you during tough times, you secure safety against unforeseen situations.

FAQs

1. What can happen if I miss the claim-filing deadline?

If a car insurance policy specifies a deadline for making a claim, missing it may result in the claim being denied. Sometimes, late claims may be accepted but they must have valid explanations for the delay, supported by relevant records and documentation.

2. Is it necessary to hire a lawyer for third-party insurance?

For effective legal representation, it is advised to hire a professional lawyer who has experience in car accident claims. Because third-party claims involve damage or death settlement through the Accident Claims Tribunal (MACT) court system, hiring an expert can help you handle the case better.

3. How does compensation get decided in third-party claims?

The Accident Claims Tribunal decides after hearing arguments from both parties to the accident and examining all supporting documents.

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.

If you’re driving across Whitefield in Bangalore or around Marine Drive in Mumbai, there is a high possibility that you’ll come across these 3 things - traffic that takes an eternity to disperse, a jaywalker who has to make his way through the traffic, and a reckless driver who has to overtake every other vehicle on the road. Add to this the degrading conditions of the roads of our country, and being a driver becomes quite a task.

The year 2017 saw the death of 1.49 lakh people due to road accidents which roughly counts for the entire population of Shillong, the capital of Meghalaya. Accidents or their causes cannot be predicted but one can take certain precautionary measures; having a motor insurance plan will definitely help you drive worry-free and forget about the what-ifs.

What constitutes car insurance?

Based on the coverage, there are two types of motor insurance - third party liability policy and comprehensive car insurance policy. The third-party liability coverage pays for the losses or damages caused by your car to any third party during a mishap. On the other hand, a comprehensive policy, along with the third-party liability also covers the losses or damages caused to your own car in case of an accident.

A comprehensive motor insurance plan provides coverage for the damages inflicted to the policyholder’s vehicle, arising out of accidents, vandalism, riots, natural disasters and calamities, loss due to theft and personal accident. A comprehensive motor insurance hence provides an all-around protection to the insured person and his/her vehicle, and thus, enabling them to drive their car stress-free.

What is the need for car insurance?

With expanding formal sector employment, increasing disposable income and easy financing solutions, owning a car is no more a distant dream for the Indian households. Vehicle density seen on Indian roads is greater than the carrying capacity of our current road network. Along with this increased vehicle density, the chances of mishaps and accidents have also increased, thereby, increasing the need for car insurance.

Adherence to the law

As per the Motor Vehicle Act of 1988, a minimum of third-party liability cover is mandatory for every vehicle plying on Indian roads. The third-party liability cover is the arrangement between the insured and the insurer wherein the insurer promises to cover the costs of damages or losses incurred to any third party (in lieu of a price called the premium) arising out of the mistake or negligence of the policyholder or first party.

Takes care of your liability

The mandatory third-party motor insurance essentially guards a car owner from the legal, financial, and medical liabilities that he/she can incur in case of an accident or a collision. The third-party liability cover policy takes care of the liability you owe to the aggrieved party, in case of a loss or damage to the property, bodily injury, or disability caused at your fault. However, the third-party insurance does not cover the policyholder for any loss or damage to his/her own car or property in case of an accident or theft.

Reimburses the damage

While a third-party insurance covers the damages inflicted to the third party, a comprehensive car insurance  takes care of the damages and losses to your own vehicle as well as damges caused to third party.

Updated on - 04 Feb 2026

A common way people get scammed in India is by buying fake insurance policies without realising it until they file a claim. Avoid such a shock by steering clear of fraudulent policies with these smart tips.

Rely only on credible sources

It’s not easy to tell if a policy is genuine or fake just by looking at it, which makes it important to deal only with credible sources. Always buy your motor insurance policy directly from the insurance company to eliminate the risk of intermediaries, as any dealer or agent can easily print and distribute fake policies.

Buy the policy online or pay by cheque

Buying an insurance policy online is not only convenient but also safer, as the payment goes directly to the insurance company. If you prefer buying offline, make sure to pay by cheque. The cheque must be made payable to the insurance company, not to any individual.

Read the policy and verify using the verification link

Take a few minutes to read the policy carefully. Most insurers now offer a policy verification link on their website, which you can use to confirm the validity of your car insurance policy.

Buy the policy from licensed insurers

Currently, there are 33 recognised and approved general insurance companies in India. To eliminate the risk of buying a fake policy, purchase your insurance only from one of these licensed insurers. You can find the complete list on the Insurance Regulatory and Development Authority of India (IRDAI) website.

Make use of the QR code

For all insurance policies sold from December 2015 onwards, the IRDAI has made printing a QR code mandatory. The purpose of this code is to help verify the authenticity of your policy. Simply scan the QR code using a mobile app, and you’ll be able to view your policy and vehicle details.

With these smart steps, you can easily avoid falling into fraudsters’ traps and protect yourself against fake policies.

Why should you check if the insurer is genuine?

Verifying the authenticity of your insurer helps prevent fraud, claim repudiation and financial losses. A reputable insurance company ensures your policy is legitimate, the terms are clear, and claims are settled as promised, securing your investment and providing peace of mind.

How fraudsters target vehicle owners

Fraudsters use various tactics to deceive vehicle owners. Here are three common ones to watch out for:

• Identity fraud & document cloning: Criminals forge driver’s licenses or IDs or digitally alter photos to create fake driver accounts or rent vehicles in another person’s name.
• Synthetic fraud: Fraudsters mix real and fake personal information to create new, false identities used in auto lending or rentals, bypassing verification systems.
• Payment & referral abuse: Scammers use stolen cards to make payments or create multiple fake accounts to exploit promotional rewards, causing indirect financial losses to platforms and vehicle owners.

Steps to report a fake insurance policy

Becoming a victim of a fake four wheeler insurance scam can be stressful, but reporting it ensures others don’t face the same risk. Here’s what to do:

• Contact the IRDAI grievance cell: Call 155255 or email complaints@irdai.gov.in.
• Report on the National Cybercrime Portal: File an online complaint at https://cybercrime.gov.in.
• Visit the police station: Lodge an FIR at your nearest police station with relevant documents.

Consequences of buying a fake motor insurance

Buying a fake four-wheeler insurance policy can lead to serious consequences:

• If an accident or damage occurs, your claim will be denied, and you will not receive compensation.
• Driving without valid coverage can attract fines, legal trouble or even vehicle impoundment.
• Submitting fake or forged papers can lead to imprisonment under the IPC and the Insurance Act.

Tips for renewing your motor insurance safely

Renewing your motor insurance carefully ensures protection, cost savings, and compliance with legal requirements.

• Review your current policy: Access your existing coverage before renewal to identify gaps or unnecessary add-ons. Check if it still aligns with your vehicle’s age, usage and financial needs.
• Check for No Claim Bonus in car insurance: If you haven’t made a claim during the policy period, you might be eligible for a No Claim Bonus. This discount rewards safe driving and can significantly lower your renewal premium.
• Choose the right add-ons: Consider useful add-ons like engine protection, roadside assistance, or zero depreciation coverage. These reduce out-of-pocket expenses in case of accidents or damage.
• Read the terms and conditions carefully: Before renewing, go through the policy documents to understand exclusions, claim procedures, and coverage limits to avoid surprises later.

Understanding motor insurance terms to avoid scams

Understanding motor insurance or any four-wheeler insurance helps you identify fake policies, misleading claims, and fraudulent practices. This awareness safeguards your money, ensures legal compliance and prevents penalties such as denied claims or legal action.

Conclusion

We cannot say it enough: information and vigilance are the best ways to protect yourself against fraudulent motor insurance scams. To protect your policy, always verify your insurer’s legitimacy, understand policy terms and use verification tools like QR codes. Regularly review your coverage and track your No Claim Bonus in car insurance to enjoy genuine savings while ensuring that your protection remains valid, reliable, and legally compliant.

Get your car insurance online today and choose comprehensive coverage to stay protected against accidents, breakdowns, and other unforeseen events for complete peace of mind.

FAQs

1. How can I check if my motor insurance policy is genuine?

You can verify authenticity by scanning the IRDAI-mandated QR code, using your insurer’s verification link, or checking IRDAI’s list of licensed insurers.

2. What should I do if I realise my car insurance policy is fake?

Immediately report it to the IRDAI grievance cell, file a complaint on the National Cybercrime Portal, and lodge an FIR at your local police station.

3. Can I still claim benefits like the No Claim Bonus in car insurance with a fake policy?

No. Fake policies are not valid and do not offer any benefits. Only genuine insurers provide perks like a No Claim Bonus in car insurance upon renewals.

4. How can I safely renew my motor insurance to avoid scams?

Always renew through your insurer’s official website, verify the policy details, and confirm benefits such as the No Claim Bonus in car insurance.

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.

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What Type of Car Insurance Should I Choose

Car theft is a common concern for many vehicle owners. To protect the vehicles, drivers often rely on anti-theft devices, which might help prevent theft and also influence the cost and terms of car insurance. Whether you have comprehensive insurance or third-party car insurance, installing certified anti-theft devices can offer several advantages. Let us look at the significance of anti-theft devices, the types available, their benefits and how they affect car insurance premiums.

The significance of anti-theft devices in vehicles

Car theft remains a significant issue in many parts of the world, with thousands of vehicles stolen each year. This makes investing in anti-theft devices not only wise but increasingly necessary.

An anti-theft device is a tool or system designed to prevent unauthorised access to a vehicle. These devices work in various ways— from physical locks to electronic alarms— which can deter thieves and might reduce the chance of your car being stolen.

Anti-theft devices and how they help

Anti-theft devices serve as a deterrent and a protective barrier. When a thief encounters a vehicle with an anti-theft system, the difficulty of stealing the car increases significantly. Common types of anti-theft devices include immobilisers, steering wheel locks, car alarms and most importantly, GPS tracking systems.

Immobilisers are electronic devices that prevent the engine from starting unless the original key or code is used. Additionally, steering wheel locks are physical devices that lock the steering wheel in place, which may make it hard to steer the vehicle. Car alarms alert the owner and those nearby if someone tries to break in.

Benefits of installing anti-theft devices

There are several benefits to installing anti-theft devices in your vehicle:

1. Increased security: These systems make it significantly harder for thieves to steal your vehicle, reducing the overall risk of theft.
2. Lower insurance premiums: Several insurance companies provide discounts on premiums for vehicles equipped with approved anti-theft devices. This is because such devices reduce the risk of theft claims.
3. Peace of mind: Knowing your vehicle is protected by effective anti-theft measures can give you confidence and peace of mind.
4. Vehicle recovery: If a car is stolen, devices like GPS trackers can help authorities recover it more quickly.

Even those with third-party car insurance, which typically covers damage caused to others but not theft or damage to their own vehicle, might consider anti-theft devices as a precaution to reduce the likelihood of theft-related costs.

What type of anti-theft devices do you need?

Choosing the right anti-theft device depends on several factors, including your vehicle type, where you park and your budget. Here are some common types:

• Mechanical immobilisers

These are the least expensive anti-theft devices in the market. Being visual, these should be enough to ward off amateur car thieves. It is recommended to include an immobiliser in conjunction with other anti-theft devices.

Types of mechanical immobilisers include steering wheel lock, hood lock, tire lock, gear shift lock, ignition/steering wheel column and crook locks, etc.

• Electronic immobilisers

Many vehicles today come with standard car keys and fobs that protect their cars via electronic immobilisers. These built-in transponders or microchips send signals to the ignition and fuel pump system. The ignition will work only if it receives the correct signals or it remains static.

• Car alarms

Car alarms feature electronic sensors designed to activate when a vehicle is encroached. This helps in detecting unauthorised entry, breaking glass, sudden movement and perimeter violations. When the sensors detect a threat, a siren activates, alerting the car’s driver and everyone else within earshot. Additionally, you can also include a sticker on your car stating that it is protected by an alarm; this should keep away most intruders!

• Vehicle tracking systems

It provides real-time location of the stolen vehicle using Global Positioning Systems (GPS). Vehicle Tracking Systems are sold with service contracts, and have a reputation for recovering vehicles a mere hour after they have been stolen.

The impact on car insurance

Installing anti-theft devices can have a positive impact on your car insurance. Insurers assess risk when setting premiums, and vehicles with anti-theft measures are seen as less risky. As a result, insurance companies often offer reduced premiums or discounts.

For example, comprehensive car insurance policies, which cover theft and damage to your vehicle, may become cheaper if your vehicle has an approved immobiliser or alarm. Even those with third-party car insurance can benefit indirectly. Although third-party policies generally do not cover theft, installing anti-theft devices can reduce the risk of needing to upgrade to a more expensive policy later.

Things to consider while choosing anti-theft devices

When selecting anti-theft devices, keep the following in mind:

• Compatibility: Ensure the device works well with your vehicle make and model.
• Certification: Choose devices that are approved or certified by recognised bodies.
• Ease of use: Some devices require regular activation or maintenance. Pick one you are comfortable using consistently.
• Cost vs benefit: Balance the cost of installation and maintenance against potential insurance savings and security.
• Professional installation: Some devices, like immobilisers or GPS trackers, require professional installation to function properly.
• Updates and support: Electronic devices may need software updates or customer support. Check these options before purchase.

Conclusion

Anti-theft devices are an important investment for vehicle owners. If you hold a comprehensive policy or third party car insurance, installing the right combination of anti-theft devices increases your vehicle’s security and reduces risks.

However, while these devices act as strong deterrents and may even reduce insurance premiums, they are not a substitute for proper insurance coverage. Accidents, natural disasters and other unforeseen events can still occur, making it essential to have a reliable insurance policy in place. Investing in anti-theft measures, along with securing the right car insurance, provides a well-rounded approach to protecting your vehicle and your peace of mind.

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

Road trips are fun and let you travel far and beyond with the convenience and luxury of your own car. While Indian highways now have every facility available, from your favourite burger place to medical stores and garages, to ensure a smooth ride you need to be well-prepared. Impromptu or a well-planned trip, ensure the following before driving off for a memorable experience:

Check Tyre Pressure

Too much pressure reduces grip and increases average, while too less will give you a better grip but reduced fuel efficiency. Check the tread of your tyres to analyse their health. In addition, it is not advisable to drive with worn out tyre treads as it can seriously impact the handling quality of your ride.

Fill-up All Fluids

Ensure that the levels of the engine oil, brake fluid, power steering fluid, coolant are at an optimum level. These increase the life and performance of the car engine, thereby reducing the chance of breakdowns.

Upgrade Your First Aid Kit

A first aid kit is your first line of defence against emergencies and life threatening situations that may happen at any time. Be prepared with a first aid kit that contains specific medicines for particular medical conditions that your passengers may be prone to such as asthma, allergy, antibiotics and painkillers.

Carry Spare Tyre, Puncture Repair Kit and Tools

Tyres are exposed to the most wear and tear, which makes it essential to bring along a spare tyre, tool kit and puncture repair kit. Pre-planning can save you from being stuck in middle of nowhere without a spare tyre.

Charge Battery

Check if your battery is properly charged and won’t cause a problem during your trip. Double check for corrosion on terminals, clean it with baking soda, water and a toothbrush to ensure better conductivity.

Fix Washer Fluid and Wipers

Your windshield should be clean from debris and build-ups. Make sure your wipers are clean and working properly. Maintaining the levels of washer fluid and water will ensure a longer life for your wipers and avoid your windshield from being scratched.

Ensure the Safety of Co-passengers

Seatbelts are often considered as an inconvenience. However, studies have shown that people have an exponentially higher rate of survival in case of an accident if seatbelts were on.

Go for a customised seatbelt in case you are uncomfortable or get extenders that ensure you are safe and not suffocating. Although not mandatory, children should never ride in the front passenger seat. Strap them in the back seat, and if possible, get a car seat for toddlers and infants.

If your car has a central door-locking mechanism, ensure you have the child lock feature on. In addition, make sure all your doors are closed properly before you start your car.

Avoid Drinking and Driving

This one is a no-brainer. When you drive under the influence of alcohol or other substances, it compromises your alertness and sense of judgement. This can cause harm to you as well as others around you. Don’t do it.

Light up Appropriately

This includes headlights, high beams, fog lights, brake lights, indicators and reverse lights. A bad light can easily cause an accident during night-time.

Owning more than one vehicle can make daily life a lot more convenient. You might have a car for city commutes and a bike for quick errands, or perhaps your family owns multiple cars. But managing separate insurance policies for each one can quickly become overwhelming. Different renewal dates, multiple documents and separate premium payments can lead to confusion and missed deadlines.

A combined motor insurance policy offers a smarter solution. It allows you to insure all your vehicles, like cars, bikes, even electric ones, under a single plan. This blog explains how it works, the types of vehicles it covers and the benefits it can offer.

What is a combined motor insurance policy?

A combined motor insurance policy, also known as a motor floater policy, is an insurance plan that allows you to cover multiple vehicles with a single insurance policy. Instead of purchasing individual policies for each vehicle, you can have a single policy to insure all of them at once.

This kind of car insurance policy is best for individuals owning more than one vehicle, such as two-wheelers, cars or both. It consolidates all of that under a single policy document, single renewal date and usually at a lower cost.

Types of vehicles covered

A combined policy is very accommodating. It generally covers private vehicles, two-wheelers (such as scooters and bikes) and electric cars (both two-wheelers and four-wheelers).

Some policies even permit you to add a combination of older and newer vehicles. But all the vehicles have to be registered in your name or your family member's name (such as spouse or children) as per the rules of the insurer.

Benefits of a combined policy

A comprehensive combined motor insurance policy offers several key advantages. With a single policy and renewal date, managing coverage for multiple vehicles becomes simpler and more efficient. All documents are consolidated, reducing paperwork and eliminating the hassle of tracking multiple policy numbers. Claims and renewals can be handled easily through one account or app. Insurers often offer discounted premiums for bundled vehicles, making it more cost-effective than separate policies.

Additionally, a single point of contact ensures smoother communication. Some insurers also allow you to carry forward your No Claim Bonus (NCB) across all vehicles, helping reduce your premium if no claims were made in the previous year.

Things to keep in mind

Though a combined policy is convenient, the following are a few things you must keep in mind:

• Check eligibility

Not all insurance providers have a combined motor insurance policy. Therefore, you must check which companies have it and if your vehicles are eligible for it.

• Ownership requirements

In most instances, all the cars need to be registered in the name of the same owner. Where cars are owned by different family members, ask your insurance company if they can be included nonetheless.

• Claim rules

Although it's a single policy, you still need to file individual claims for every car in case something happens. Carefully read the conditions.

• Vehicle age and condition

Older cars can command more premiums. Some companies do not provide very old or junk cars with a combined cover.

• Cover types

Ensure that every vehicle receives adequate coverage. For instance, your car may require comprehensive car insurance, but your bike may require only third-party cover.

Conclusion

Having several insurance policies to manage can be difficult. But a motor insurance bundle provides you with a smart and convenient means of protecting yourself. Whether it's your vehicle, motorcycle or electric car, you can organise everything in one location. Forget about keeping tabs on several pieces of paper or risk forgetting a renewal.

In addition, you may even save money by receiving discounts on combined premiums. That is a win-win. As you are going through efforts to have your cars safe and well cared for, we can help you stay protected on the road as well. Take personalised car insurance guidance and solutions by completing the form offered on this page.

FAQs

• Is it possible to cover my bike and my car under a single motor insurance policy?

Yes, in case your insurer provides a combined or motor floater policy, you can put both bike and car in one plan.

• Will I receive a No Claim Bonus on all cars?

A few insurers provide a shared No Claim Bonus (NCB) or separate NCBs for each vehicle. It varies with the policy. Always inquire prior to purchase.

• What if I sell one of the cars?

You can notify the insurer and delete the sold vehicle from the policy. Your premium could be revised accordingly.

• Is a combined motor policy very affordable to purchase?

Yes, in most cases. You could enjoy discounts for bundling, and also save time and effort.

• Do electric vehicles come under cover?

Yes, electric two-wheelers and cars are covered by most insurers under combined motor policies.

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.

You belong to the elite club of owners for whom cars are an extension of their identity, a prized asset, a reason worth spending money, often for overhauling.

While complex repairs should be left to the technical experts, you can surely carry out some effortless preventive maintenance yourself. Here are some do-it-yourself tips to keep your car in great condition:

Car Tires

Pressure: Checking the tire pressure regularly is important as ideal pressure conditions have a bearing on fuel efficiency and driving comfort.

Cleaning: The tire treads should be regularly cleaned with water and sponge. Heat and static electricity generated in moving tires pick up dirt and grime from the road. Cleaner treads enhance the tire life.

Tire Rotation: Exchanging the tires every 8,000 km will balance the wear rate of tires, at the same time ensure improved car performance. Tire rotation is also vital for achieving an even tread wear and a long tread life.

Time to Let Go: Check the tread wear indicator on your tire to know if it is time to replace your tire. A worn out tire poses severe hazard on the road, to you as well as others.

Car Body

Wax and Polish: To maintain the painted surface of your car, opt for good quality wax and polish. A polished car is not only good to flaunt but also serves you for a longer life.

Cleaning: Always remember to clean bird droppings from the car immediately, as they contain acidic fluids that corrode the surface leaving a visibly dull patch. Also avoid body stickers, as the adhesives can damage the paint.

As per the new directive laid out by the Supreme Court and enforced by Insurance Regulatory and Development Authority of India (IRDAI), it is now compulsory for vehicle owners to buy a long-term third party Car Insurance policy. Earlier, you would get a one-year cover from your motor insurance policy but now, as per the order, the mandatory third party insurance cover for cars is three years and for two-wheelers it is five years.

So, if you have purchased a car or two-wheeler post September 1, it is compulsory for you to buy three-year and five-year third party liability covers respectively. Companies have already started selling these products. But, before you purchase any policy make sure that you compare the premiums and discounts.

A comprehensive motor insurance package consists of a third party liability cover, and an own damage component along with different, optional add-ons like zero depreciation and engine protection. Though initial costs of new vehicles would increase, a long-term policy brings several advantages.

Increase in Initial Premium Payment

For private cars, the long-term premium for three years will be approximately 3 times the one-year premium amount, whereas for two-wheelers the premium for the period of five years will be approximately 2.4 to 5.5 times that of the one-year premium amount.

This translates to a one time insurance premium outgo of ₹24,000 compared to ₹7800 for a private car exceeding 1500cc. In the case of bikes with an engine capacity of more than 350cc, the premium would go up to ₹13,000 compared to ₹2300 that is the norm.

Long-term motor insurance policies will be advantageous because as vehicles age and depreciation increases, many people tend to skip renewals or simply forget about renewing the policy. This initiative by the Supreme Court and IRDAI will help improve the penetration of insurance and bring more vehicles under the ambit of insurance.

Don’t Forget Discounts on NCB

Since the tenure of the motor insurance policy has increased to three years for cars and five years for two-wheelers, the annual benefit that NCB offered can no longer be passed onto the customer. The NCB benefit will only be available on expiration of policy tenure. Since the NCB discount is only applicable after the policy expires, insurers are offering upfront discounts on premiums to counter this loss to the customer.

“Customers can get dual NCB benefits in long-term. First, upfront NCB discount in price and secondly, higher NCB discount benefit as against existing NCB grid during renewal after three years. We are awaiting for the regulator’s approval.” says Sanjay Datta, Chief, Underwriting, Claims and Reinsurance of ICICI Lombard General Insurance.

Go For the Appropriate Combination

As the risk of accidents are high in case of two-wheelers, it makes sense to go for a long-term comprehensive cover. The advantage here is that the renewal rates are also extremely low. On the other hand, car-owners should dive deeper to pick the right combination of motor insurance cover. The overall cost of a long-term package will be cheaper in this case, but you have to consider the large one-time outgo on purchase.

Updated on - 13 May 2026

Technology is steadily reshaping how motor insurance works, especially when it comes to claims. From faster processing to reduced paperwork, how technology is revolutionising car insurance is becoming more visible with each advancement.

In the past, filing and settling claims could take several days, involving multiple inspections and approvals. Today, the latest tools are making car insurance claims in the digital era quicker, simpler, and more efficient for policyholders.

What is Touchless Claims Technology in Insurance?

Traditionally, claim settlement involved several manual steps, including inspections, paperwork, and approvals from different parties. This often led to delays and inconvenience.

With touchless claims technology, much of this process is automated. Technologies like artificial intelligence (AI), machine learning, telematics, and data analytics can capture damage, assess claims, and process approvals with minimal human involvement.

This shift is helping reduce claim processing time significantly from days to just minutes.

What are the Key Benefits of Touchless Claims for Policyholders?

Technology simplifies multiple stages of the claims journey for policyholders, like:

• Digital Claim Filing: Policyholders can submit claims online using mobile apps or websites.
• Image-Based Assessment: Photos or videos of the damaged vehicle can be used for quick evaluation.
• Automated Verification: AI systems cross-check policy details and detect inconsistencies.
• Faster Settlements: Reduced manual intervention helps speed up approvals and payouts.

These improvements are shaping the future of car insurance claims.

Real-World Use Cases of Digital and Instant Claim Processing

Digital transformation is already visible in the insurance sector. Some insurers are working on systems where claims can be initiated using images clicked by customers, while others are exploring near-instant claim settlements powered by AI.

There is also ongoing development in connected vehicle technology, where sensors may automatically detect accidents and initiate claims. This reduces the need for manual reporting and speeds up the entire process.

Even policies like third party car insurance are gradually becoming easier to manage through digital platforms, improving accessibility and convenience.

How is ICICI Lombard Leveraging Touchless Car Insurance Claims Technology?

Insurers in India are increasingly adopting digital tools to improve the claims experience. ICICI Lombard, for instance, has been working on integrating technologies such as artificial intelligence, data analytics, and automation into its processes.

These advancements allow customers to initiate claims using simple inputs like photos of the damaged vehicle. The system can then assess the damage, verify policy details, and begin processing the claim with minimal manual intervention.

The focus is on reducing turnaround time and making the process more convenient for policyholders. As part of this shift, digital platforms are also being used to manage policies, track claims, and improve overall service efficiency.

Conclusion

Technology is steadily reshaping how car insurance claims are managed. With the use of AI, automation, and digital platforms, the process is becoming quicker and easier to navigate.

While traditional methods are still in place, the move towards touchless and digital claims points to a more efficient approach. As these systems develop further, car insurance claim settlements are likely to become faster and more convenient for policyholders.

FAQs

1. How does touchless technology help in faster insurance claim settlement?

Touchless technology reduces manual steps by using AI and automation to assess damage, verify details, and process claims quickly, which speeds up settlement.

2. Can I file a car insurance claim using photos or videos?

Yes, many insurers allow claims to be filed using images or videos of the damage, which helps in faster assessment and processing.

3. How does AI help in assessing vehicle damage during claims?

AI analyses images and data to estimate the extent of damage, check policy details, and detect possible fraud, making the claims process quicker and more accurate.

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. Please read the sales brochure/policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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.

Updated on - 18 May 2026

A car accident is one of the worst nightmares of any car owner, as it brings with it monetary damages and a lot of stress. Under the Motor Vehicles Act, 1988, third party car insurance is mandatory in India. However, in many instances, vehicle owners find their motor insurance claims rejected and are left high & dry, bearing huge expenses out of their own pockets.

This blog discusses the reasons behind claim rejection in detail.

Common Reasons for Car Insurance Claim Rejection

Auto insurance providers have often been criticised for rejecting claims to avoid a hefty payout. However, that’s not always the case! Many car insurance claims are rejected due to policyholders' negligence and mistakes.

Here are a few important oversights as to why car insurance claims get rejected:

1. Driving under the Influence (DUI)

Driving Under the Influence, or DUI, can drag you into a world of trouble, as it is not only a reason for car insurance claim rejection but also a prosecutable crime. Be it alcohol or banned/controlled substances, any indication of their use while driving leads to instant rejection of your motor insurance claim. Besides the claim rejection, you might even face significant legal heat, leading to fines, imprisonment, or both.

2. Driving without a Valid Driving Licence

Driving without a valid licence is a punishable offence and one of the reasons why car insurance claims get rejected straight away. In case of an accident, you won’t even be able to raise a claim with your insurance provider if you’re found without a proper driving licence. Not only will you lose out on the insurance claim, but you are also likely to be fined a minimum of ₹5,000.

3. Delay in Reporting the Accident

Informing the car insurance provider at the earliest is the best course of action when filing a claim. Most insurance companies offer a grace period for reporting, but it’s always better to contact the company as soon as possible. Delays in accident reporting lead to a more complicated car insurance claim settlement process and often result in 100% claim rejection.

4. Policy in Someone Else’s Name

In numerous cases, drivers are often found with car insurance policy papers in someone else’s name. Although a few drivers turn out to have done so intentionally, many are found to be simply careless or forgetful.

This primarily occurs with used or second-hand cars. Ensure that you transfer the existing car insurance policy and the registration certificate (RC) for second-hand cars. In the event of a car accident, the insurance provider reserves the right to reject your auto insurance claim if your name is different on the policy papers.

5. Use of Vehicle beyond the Geographical Limitations

The Insurance Regulatory & Development Authority (IRDA) has divided India into two zones: metro cities and other regions. Zone A is for the metros, and Zone B is for the rest of the country. Depending upon the zone covered under your car insurance policy, you are entitled to make a motor insurance claim in that particular zone.

However, if an accident takes place in the non-covered zone, then your insurance claim is liable for rejection. For example, if the accident occurs on foreign soil, such as the Maldives, Sri Lanka or Pakistan, then your auto insurance claim will be rejected.

6. General Wear and Tear

Your vehicle is bound to experience wear and tear over time with continuous use. While this is inevitable, it’s still not covered by your car insurance. Even if you have opted for a comprehensive car insurance policy, any motor insurance claim against wear and tear is bound to get rejected.

7. Uninformed Repairs

Any repairs made to your vehicle without notifying the insurance company will not be covered under your motor insurance policy. In the event of an accident, you are obligated to inform the insurance provider about all the damages to get approval for the claim made. In such a scenario, a designated inspection officer takes stock of the damages, and only then do the repairs and the claim process begin.

8. Reckless/Dangerous Driving

Driving in an off-road terrain or overloading your vehicle? If you misuse your vehicle in such a manner, then be prepared for an instant claim rejection. Whether the damages are incurred due to misuse or reckless driving, any insurance claim arising from such an act will be rejected.

9. Unlisted Accessories and Modifications

At the time of renewal, it’s wise to declare all modifications made to your vehicle. Any changes not listed with your insurance provider can lead to motor insurance claim rejection if made against the said modification, be they accessories or efficiency add-ons (e.g., a CNG kit); intimation to the insurance provider is a must.

10. Personal to Commercial Use & Vice-Versa

Driving a personal vehicle for commercial purposes, or vice versa, is a gross violation that is not only punishable under the law but also nullifies your car insurance claim. While many personal vehicles are used for commercial purposes; this usage can easily get your insurance claim rejected. Also, you might find yourself in legal trouble, which can lead to a substantial fine.

Conclusion

Keep your four-wheeler insurance updated, adhere to the rules, drive safely and avoid all the above-mentioned mistakes to ensure that your car insurance claim doesn’t get rejected. In addition, always review your policy document carefully to understand inclusions and exclusions before filing a claim. Staying informed and proactive can make the claim process smoother and help you avoid unexpected financial setbacks.

FAQs

1. What documents are required to avoid claim rejection?

The exact documents you require to avoid claim rejection can vary depending on the insurer, the nature of the claim, the IRDAI guidelines, and your policy wording. These documents usually include a claim form, your policy copy, driving licence, RC, FIR (if applicable), photographs of damage, surveyor’s report, and repair bills or receipts for the work done on the vehicle.

2. Can using my personal car for commercial purposes affect my claim?

Indeed, driving a private vehicle for business activities may be against the conditions of the policy and may lead to the denial of a claim.

3. Does filing a claim impact future insurance premiums?

Your No Claim Bonus (NCB) may be reduced or eliminated by frequent claims, which could result in higher premiums at renewal because insurers see repeated claims as more of a risk. Keeping a claim-free record lowers your insurance premiums over time and helps you keep your NCB.

4. Can delayed claim intimation lead to rejection?

Yes, but that is not the default result. In a number of cases, the Supreme Court of India ruled that if the policyholder can offer a plausible explanation and the insurer's interests are not jeopardised, a legitimate claim should not be denied purely because of the delay. Rejection may still result from inexplicable or unreasonable delays, particularly if they impede proper investigation.

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. Please read the sales brochure/policy wordings carefully for detailed information about risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.