Bharti AXA General Insurance is now part of ICICI Lombard General Insurance.

Bharti AXA General Insurance is now part of ICICI Lombard General Insurance.

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  • How to Check E Challan Status Online

    by Almog Ramrajkar | May 16, 2022

    You probably drive as carefully as you can to avoid accidents and refrain from violating traffic rules. But mistakes happen by the best of us. You may drive on high alert but there will always be some mistakes you make and end up getting a challan. A traffic challan can be issued for flouting any traffic rules like jumping a signal, driving over the speed limit, or driving without valid motor insurance. Earlier the process of getting a challan till actually clearing the fine in the system used to be an arduous task. But in order to simplify this process and ensure that traffic rules are followed even in the absence of traffic police, the authorities have employed the e-challan system.

    What is E-challan?

    An E-challan is a challan or fine that is generated through electronic and digital means. The idea behind employing e-challans is to reduce dependency on physical papers. An E-challan is accessible through an authorized digital source. These e-challans, add a great deal of convenience to the different processes surrounding them.

    What is a traffic e-challan?

    In India, if you are pulled over by the traffic police for breaking a traffic rule, you will be given a ticket. This ticket is called a challan. It lists the rule you broke and the fine for it. However, there are a lot of problems that arise from doing things this way. First, maintaining a record of all the challans issued even in a single day becomes a tough challenge. Second, just issuing a challan doesn’t mean the fine will be collected. Moreover, in the case of a physical challan, you have to go to an authorized traffic police station or the RTO office to make a payment. 

    To tackle all of these challenges, the Ministry of Road Transport and Highways (MoRTH) has started executing on the concept of e-challan. At its base concept, an e-challan is just an electronically generated challan. However, the benefits it has for drivers as well traffic authorities are exceptional. E-challans work on an integrated platform to enforce traffic laws through information technology. Traffic personnel can issue challans to noncompliant drivers digitally and charge them fines as per the rules set by Motor Vehicles Act of 2019 with or without even being present at the scene.

    How does traffic e-challan work?

    The main goal of traffic e-challan is to create a more seamless approach of penalizing traffic violations like traffic signal violation, not wearing a helmet, over-speeding, etc. E-challans achieve this goal in two ways:

    • Traffic police can generate an e-challan after pulling a driver over upon catching them on violating a traffic rule.
    • E-challan can be automatically issued if any driver is recorded going above speed limit or breaking red-signal rule, etc. on traffic surveillance cameras or speed guns. The e-challan is issued against the vehicle owner after the cameras register its number plate, make and model.

    Different cities across India have different kinds of automated systems for giving e-challans. Some of them directly capture the vehicle on camera and issue a penalty. On the other hand, some require manual handling. This manual operation is carried out by traffic personnel who issue e-challans through a mobile app connected to the database of the RTO.

    When a driver logs onto the website where these challans are listed, he/she can see the list of offenses and the fine that they need to pay for them. To make things better, you do not even need to visit a police station or an RTO office to pay your fines. You can pay your penalty through debit cards, net banking, etc. on the website itself.

    Traffic e-Challan Process Flow

    CCTV camera captures violation - Traffic Enforcement Officer is notified - Officer confirms the offense - E-challan is issued - Driver receives e-challan on registered email ID/mobile no. - Driver pays the fine - E-challan is cleared

    Steps To Pay Your E Challan Online

    The simplest and most convenient way to pay for traffic e-challans is to do it online. To promote hassle-free processes, traffic authorities have introduced a designated website for traffic compliance that is easy to find and navigate. Moreover, your e-challan will have a unique number so there is no confusion in making your payment. You can use this number to find your e-challan and make the payment quickly.

    When an e-challan is issued, you will get a notification on your registered email or phone number. Once you receive this e-challan, you will have 60 days to pay your fines. However, it is better to make the necessary payment as soon as possible. Failure to do so within the next 60 days means the traffic authorities will take legal action against you. These are the steps that you can follow to make the e-challan payment:

    • Log on to the following link: https://echallan.parivahan.gov.in/index/accused-challan.
    • Provide the necessary details like driving license number, challan number, etc. where the website requires you to.
    • After you have entered the necessary details, you need to click on the ‘get detail’ option.
    • You will see the e-challan status on your screen. Click on the ‘Pay now’ option to start your payment.
    • The next step is to select a payment mode for your e-challan. The options available to you will be debit cards, credit cards, and net banking. Once you have selected an option and made the payment, you will receive a message on your registered mobile number confirming your payment.
    • You also can use digital wallets like PayTm, PhonePe, GPay, etc. to pay your traffic e-challan.

    If you are not familiar with doing things online, there is always the option to pay fines offline. This way of paying fines involves visiting your nearest traffic police station or RTO office and making your payment over the counter.

    Steps to Check Traffic E-Challan Status Online

    Here is how you can check your e-challan status online:

    • Log on to https://echallan.parivahan.gov.in/
    • Go to the ‘Check Challan Status’ section.
    • The new page that opens up next will require you to provide your vehicle number or driving license to check if your vehicle has any traffic violations listed against it.
    • In the case your vehicle is not involved in any traffic violations, the website will show you a dialog box showing the words ‘Challan Not Found’.
    • On the other hand, if you have committed traffic violations, you will see a row showing the list of all of them. It will show you the list of offences and the fine that has to be paid for them.

    What happens if you don’t pay the traffic e-challan?

    Simply put, the e-challan is a compulsory payment and not making it means ignoring stringent traffic laws. Hence, as a penalty for breaking the law, you will have to face legal action from traffic authorities.

    Upon missing your payment deadline, you will be sent a court summon at your registered address. At the court, you will have to explain to a judge why you made the traffic violations and why you have missed your e-challan payment. Based on your explanation, the judge gives a verdict.

    In the rare case that drivers do not show up at court even after a summon, their driving license is suspended.

    How can you avoid the E-challan?

    Here are a few tips that you can use to avoid getting a traffic e-challan:

    • Drive smartly by following lane discipline, following traffic signals, wearing helmets/ seatbelts, following the speed limit.
    • Make sure you have a suitable motor insurance
  • All You Need to Know About Car Insurance Nominee

    by Almog Ramrajkar | Apr 28, 2022

    What Does Nominee Mean in Car Insurance?

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

    Meaning of Nominee in Car Insurance Policies

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

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

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

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

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

  • Know Why Electric Car Insurance is Expensive

    by Almog Ramrajkar | Apr 28, 2022

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

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

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

    What about car insurance?

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

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

  • How to Transfer Car Ownership Online?

    by Almog Ramrajkar | Apr 28, 2022

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

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

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

    Car Ownership Transfer in the Case of Normal Sale/Purchase

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

    1. Fill up Form 29 with the necessary details online and take a print.
    2. Once the details are verified, hand out the form to the local RTO at the seller’s and purchaser’s location of residence. Herein, the purchaser needs to submit Form 30 within 14 days of transfer along with documents related to Form 1 and 2.
    3. In the case of inter-state transfer, the purchaser needs to fill up Form 30 within 45 days of such transfer and submit necessary documents.
    4. The buyer must also pay the necessary charges levied on such transfer under Rule 81 of the General Motor Vehicles (GMV) Rules 1989 to complete inter-state transfers.

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

  • How Car Insurance Deductible Works?

    by Almog Ramrajkar | Apr 28, 2022

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

    What is the deductible in car insurance?

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

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

    How are car insurance deductibles beneficial?

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

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

  • IRDAI set to increase third-party car insurance premiums

    by Almog Ramrajkar | Mar 23, 2022

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

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

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

    What is third-party car insurance?

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

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

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

    Features of third-party liability cover

    • Third-party legal cover is mandatory by law. 
    • It compensates the third party for property damage caused by your car.
    • If a third person is injured physically, the policy will cover their medical costs.

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

  • Benefits of Renewing ICICI Lombard's Car Insurance Policy

    by Almog Ramrajkar | Mar 04, 2022

    Benefits of Renewing Your ICICI Lombard Car Insurance Policy

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

    Advantages of Renewing Your ICICI Lombard Car Insurance Policy

    Saves Time:

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

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

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

    Easy Customisation:

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

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

    No Claim Bonus (NCB):

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

     

    Claim free policy years

    No Claim Bonus (NCB)

    After 1st claim free year

    20%

    After 2nd claim free year

    25%

    After 3rd claim free year

    35%

    After 4th claim free year

    45%

    After 5th claim free year

    50%

  • Difference Between Power Petrol And Normal Petrol

    by Almog Ramrajkar | Jan 05, 2022

    What is Power Petrol

    You might have noted at many of the fuel pumps while fueling your vehicle that there are two kinds of fuel sold at pumps. Also, if you have asked for fueling your vehicle with power petrol, then you might have noted that the price or cost of power petrol is higher than regular petrol. Doesn’t it make you curious? Like what is the difference between petrol, are there any additional benefits of adding power or premium petrol, and why power petrol is costlier than standard petrol?

    In India, fuel pumps usually sell three categories of petrol:

    • Normal (unleaded)

    • Premium petrol (Power, Speed, and Extra mile, Turbojet or Hi-speed)

    • High octane petrol (Speed octane)

    You can note here that Power is a kind of premium petrol and normal is unleaded. The main difference between regular and power fuel is that power or premium fuels have a higher number of octane. Usually, in the country, different kinds of petrol have different numbers of octane. Regular petrol or unleaded petrol has octane ratings of 87 typically. In midgrade petrol, the number of octanes varies from 88 to 90. In premium or Power petrol, there is a higher number of octane, i.e. 91 to 94.

    You can note here that Power is a kind of premium petrol and normal is unleaded. The main difference between regular and power fuel is that power or premium fuels have a higher number of octane. Usually, in the country, different kinds of petrol have different numbers of octane. Regular petrol or unleaded petrol has octane ratings of 87 typically. In midgrade petrol, the number of octanes varies from 88 to 90. In premium or Power petrol, there is a higher number of octane, i.e. 91 to 94.

  • Know The Grace Period After Your Car Insurance Expires

    by Almog Ramrajkar | Jan 05, 2022

    What is Grace Period in Car Insurance?

    Earlier buying an insurance policy and its renewal was really a very cumbersome process. With the advent of technology, the whole procedure has become so much simpler. In fact, the majority of service providers offer the option of completing the entire buying and renewal of policies online to their customers.

    While the insurance companies have their own websites where you can get this done, another option is to use third party aggregator sites too. You can primarily use these sites to compare the various benefits offered by the insurance companies at the time of buying or renewing their car insurance policies.

    Grace Period After the Car Insurance Expires

    There is no grace period after insurance expires under law. It all depends on the insurance companies. The grace period for the insurance plan may vary from 3 days to 30 days as per the terms and conditions of the policy issued by the insurance company. The customer must check about the car insurance grace period at the time of buying the insurance policy.

    Consequences of Not Renewing Car Insurance Before Expiry

    Under the Motor Vehicles Act driving cars on Indian roads without third party car insurance is illegal. Such action may invite imposition of penalties and fines. It is advisable to renew your car insurance before its expiry date.

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

  • What Are Consumables In Car Insurance

    by Almog Ramrajkar | Jan 05, 2022

    Consumables in Car Insurance

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

    Firstly let us understand what are consumables?

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

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

    Now let us understand about a consumable cover

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

    What will it cover?

    A consumable cover would cover the following:

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

  • What Is Hypothecation In Car Insurance?

    by Almog Ramrajkar | Jan 05, 2022

    Things You Need To Know About Hypothecation

    Hypothecation may sound complicated and a bit of a tongue twister as well but it is really quite a simple concept and one that you are most likely familiar with if you have taken a car loan to purchase your desired car.

    To give you a better understanding of this term used in car insurance, we devote today’s article to explain to you the concept of hypothecation and the important aspects that you need to know about hypothecation with respect to car insurance.

    Hypothecation in Car Insurance Explained

    It is in rare cases that a buyer makes a full upfront payment to purchase a major high value asset such as a car, the cost of which runs into many lakhs of rupees. Most people whether salaried, self-employed or having a business of their own will usually approach a bank to apply for a car loan.

    A car loan allows you the dual benefit of owning and using your own car while at the same time easing out your financial burden into manageable monthly instalments or EMIs. Actually when you go in for a car loan, you don’t fully own your car. Here is where the concept of hypothecation comes in.      

    Hypothecation means that the asset, against which you have taken the loan i.e. your car, will be pledged to the lender i.e. the bank that has sanctioned your car loan. It is a security measure taken by the bank where your car is pledged as a collateral security to the bank till such time as you repay the car loan in full. In case you default on your EMI payments, hypothecation gives the bank the authority to seize and take possession of your car. Hypothecation also ensures that you do not sell the car to another party until you have repaid your car loan. Hence during the period when there is an active car loan in your name, your car remains hypothecated to the lender which could be a bank or NBFC from whom you have taken a car loan.

  • Reasons Why Innova Crysta Is The Most Popular Car In India

    by Almog Ramrajkar | Jan 05, 2022

    What Makes Innova Crysta Special

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

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

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

    Level of Comfort

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

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

    Look and Design

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

  • What Is Return To Invoice Cover In Car Insurance

    by Almog Ramrajkar | Jan 05, 2022

    How is RTI Different from IDV?

    Your car is like your baby. You want to look after it, protect is from every potential danger and nurture it for as long as you decide to keep it. In spite of so much security and protection, incidents on roads will happen. For all these unforeseen moments, you will be glad that you a solid car insurance policy to back you up.

    That said, what do you do in a scenario where your beloved car is damaged beyond repair or it is stolen?

    Don’t lose hope right away as you, fortunately, have Return of Invoice or better known as RTI as an add-on cover.

    RTI is offered as part of a comprehensive car insurance plan. This can only be availed by vehicles that are new or are less than five years old. If the car is stolen or suffers irreparable damage, the insured customer has the right to claim full compensation. However, this will only be up to the last complete invoice value of the car.

    How is RTI Different From IDV?

    Under usual circumstances, your maximum claim is limited to the IDV of the vehicle. On the other hand, RTI is a top-up option that can be used to cover the difference between Insured Declared Value and the Invoice Value of the vehicle.

    To put things into perspective, due to the annual depreciation of your car, IDV will always be less than the invoice value of your vehicle. With an RTI option in place, you can get the current on-road price. That means, even if there has been depreciation, it does not apply to you.

    When Is RTI Applicable?

    Having the RTI option is an investment that can help in safeguarding your back especially in situations where the financial liabilities are high. By bridging the gap between the vehicle and its Insured Declared Value and the actual invoice value, you are liable to be reimbursed for the total ‘On Road’ price of the vehicle that you paid when you purchased it.

    Generally, the RTI cost is approximately 10% more of a comprehensive care insurance plan.

    Remember that insurance providers offer RTI as an add-on for vehicles until they reach an age limit that has been predefined before.

    The Return to Invoice option is not applicable in all situations. So, when you have a dent in your car or it needs repairing, or if your windshield has a crack on it, you do not need to bank on RTI for compensation. Own Damage Cover or other add-ons like Zero Depreciation can handle these partial losses.

    RTI should only be used to recover substantial financial loss as a result of irreparable car damage or if there has been a case of theft where the vehicle is no longer recoverable.

  • A Complete Guide About Zero Depreciation Cover In Car Insurance Policy In India

    by Almog Ramrajkar | Jan 05, 2022

     All About About Zero Depreciation Cover

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

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

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

     

    Understanding Vehicle Depreciation and Zero Depreciation

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

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

    Depreciation Schedule

    Age of the Vehicle

    % of Depreciation

    Not exceeding 6 months

    NIL

    Exceeding 6 months but not exceeding 1 year

    5%

    Exceeding 1 year but not exceeding 2 years

    10%

    Exceeding 2 years but not exceeding 3 years

    15%

    Exceeding 3 years but not exceeding 4 years

    25%

    Exceeding 4 years but not exceeding 5 years

    35%

    Exceeding 5 years but not exceeding 10 years

    40%

    Exceeding 10 years

    50%


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

  • Difference Between Premium Petrol And Normal Petrol

    by Almog Ramrajkar | Jan 05, 2022

    What is Premium Petrol

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

    Premium petrol

    Petrol contains a chemical component called octane. Premium type petrol has a higher rate of octane component in it. The measure of octane contained inside the fuel decides how well it will function in higher-pressure motors – high octane fuel works more successfully than lower-rated fuels. The standard rating for oil in the UK is 95 octanes, and each vehicle sold in the UK has its hardware tuned so it can run appropriately on this fuel. Premium fuel is more expensive than standard due to its higher rate of octane. The benefits of this increased octane rating include lower fuel consumption as well as better engine protection and performance.

  • List Of Documents You Have To Keep In Your Car At All Times

    by Almog Ramrajkar | Jan 05, 2022

    Here Is A List Of Documents You Must Keep In Your Car

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

    Registration certificate

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

    PUC Certificate

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

  • Does Your Car Insurance Cover Flood Damage

    by Almog Ramrajkar | Nov 21, 2021

    Does Your Car Insurance Policy Cover Damages Due to Flood?

    Monsoon has already arrived in most parts of the country. Although, lesser people are seen on roads due to the Covid-19 pandemic, those who need to take their cars out should be ready to face water-logged conditions. As per the Meteorological Department of India, various parts of the country, including Kolkata, Delhi, and Mumbai can witness moderate to heavy rainfall this monsoon.

    So, before you take your car out of the parking lot and face the wrath of this season, it’s important for you to know about a few things. First of all, you should know how to drive if it’s raining and what to do if you witness water-logged streets. Also, you must procure a comprehensive car insurance policy (if you don’t have it already) to stay financially protected against the adverse situations.

    But, do you know if a comprehensive car insurance plan cover damages caused due to water ingression or flood? Is it enough to provide you an adequate coverage during the threatening monsoon season? What should you do if your car gets submerged in water? Continue reading to find answers to all such questions.

    Does your car insurance policy cover damage due to water ingression?

    There can be no specific answer to this question. That’s because it largely depends upon the type of car insurance policy you have purchased for your car. In case of a standalone third-party insurance, no damages will be covered by your car insurance policy as it covers only the damages sustained by an unknown third-party and not your own car.

    On the other hand, a comprehensive car insurance policy may cover the damages due to water ingression or flood, but only partially. It’s because although a standard comprehensive car insurance policy provides coverage against all types of natural disasters, including flood, inundation, storm and water ingression, any damage to the car’s engine is usually excluded.

    It means that the damages to the car’s body and its parts would be covered but any damage to its engine won’t be covered by a standard car insurance policy.

    During the monsoon season, instances like water ingression due to flood and waterlogging on streets, hydrostatic lock or starvation of lubricants, leakage of oils etc. are very common. These incidents can cause temporary or even permanent damage to a car’s engine and gearbox.

    What’s the way out?

    As mentioned above, a normal car insurance policy with own-damage cover protects car’s body and other mechanical parts but it does not cover any damage to its engine or gearbox. In such cases, the car owner may have to pay for the losses out of his/her own pocket. However, there is a way through which you can get these damages covered by your car insurance policy.

    What you can do is add an Engine Protection Cover to your motor insurance policy while buying or renewing it. The engine protection cover is an add-on cover or rider that you can attach to your basic car insurance policy to enhance its coverage at a nominal addition to the premium amount.

    An engine protection cover provides protection against any damage to the internal parts of an insured car’s engine and gearbox, arising due to water ingression or leakage of lubricating oils. These are usually not covered by standard comprehensive car insurance policies.

    You can also supplement your car insurance policy with a zero-depreciation cover. A zero-depreciation cover negates the impact of the depreciation on the insured car’s parts. It means that even if your car is five years old, you will get full compensation for any damage to the car’s engine or body, without the depreciated amount coming into the play.

  • Top Automobile Industry Trends in India During Covid-19 Pandemic

    by Almog Ramrajkar | Nov 19, 2021

    Top 6 Trends Witnessed by Automobile Industry During The Pandemic

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

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

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

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

    1. Rising preference for personal mobility

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

    2. Increasing penetration of alternative-engine powertrains

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

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

    3. Increasing preference for connectivity features in vehicles

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

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

  • 5 Reasons Your Car Insurance Claim Gets Rejected

    by Almog Ramrajkar | Nov 17, 2021

    5 Reasons Why Your Car Insurance Claim May Get Rejected And What You Can Do

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

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

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

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

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

    Hence, it’s important to file a claim only when it’s genuine and necessary. There is no point in trying to dupe the insurer by narrating a false accident story as it will only lead to the rejection of the insurance claim. If a surveyor isn’t satisfied with your claim, it’s you must convince him about the authenticity of your claim.

    Reason 2 – Inability to produce the required documents

    Another common reason for the rejection of motor insurance claims is the inability of the policyholder to produce the required documents. Usually, when a customer files a car insurance claim, insurance companies ask for some basic documents such as policy document, Registration Certificate (RC) of the car, FIR copy (in case of theft), driving license and Aadhar card of the driver/owner, etc.

    If you’re not able to submit any of the documents asked by your insurance provider, your car insurance claim might get rejected. Hence, it’s crucial to collate all the required documents before filing a claim. If your claim has been rejected once due to improper documentation, you can file it again with all proper documents.

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

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

    In such cases, the car insurance claim will be outrightly rejected by the insurance provider and there’s nothing that you can do about it. The best way is to follow all traffic rules and maintain safety standards while driving your car. Also, when you make any modification to your car, you must inform your insurer in advance.

  • Why Should You Cancel Your RC After Scrapping Your Car

    by Almog Ramrajkar | Nov 17, 2021

    Why is it Important to Cancel Your RC After Scrapping Your Car

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

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

    What is total loss of a car?

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

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

    What is the registration certificate of a car?

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

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

    Why is it important to cancel your car’s RC in case of total loss?

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

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

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