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

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

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

What about car insurance?

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

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

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

What is the deductible in car insurance?

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

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

How are car insurance deductibles beneficial?

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

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

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

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

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

What is third-party car insurance?

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

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

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

Features of third-party liability cover

• Third-party legal cover is mandatory by law. 

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

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

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

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

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.

If you are a car owner, your vehicle is probably an essential part of your daily schedule. Hence, it is very important for your car to be in the best condition possible. The type of fuel you use for your car has a great impact on its performance and condition. This, in turn, can also have an impact on your car insurance.

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.

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.

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

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.

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.

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 car 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.

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

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

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

Understanding Vehicle Depreciation and Zero Depreciation

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

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

Depreciation Schedule

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

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 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 car 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 policy with a zero-depreciation car insurance 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 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.

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.

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.

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

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

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

What is “Break in Period” in car insurance?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Get your car serviced at least once every year

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

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

2. Wash the exteriors and clean the interiors regularly

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

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

3. Replace the tyres when required

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

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

Though a valid third-party insurance policy is mandatory for all vehicles in India, compliance to this law was found to be very low in 2018. As per a Supreme Court Committee’s report of March 2018, only one out of three vehicles in India was found to have a third-party liability cover. The report also mentioned that about 40% of cars that are more than three years old remain uninsured in India.

In order to reduce the number of uninsured vehicles on road, the Honorable Supreme Court of India gave a landmark order in July 2018, making it mandatory for all cars and two-wheelers sold on or after 1^st September 2019 to have a long-term third-party motor insurance cover. The duration for this mandatory long-term coverage was 5 years for two-wheelers and 3 years for four-wheelers.

In August 2018, the Insurance Regulatory and Development Authority of India (IRDAI) directed the motor insurance companies to comply with the Supreme Court’s order and start offering long-term insurance plans for all vehicles sold after 31^st August 2019. Also, it asked the insurers to offer bundled plans that can provide long-term coverage for both – third-party liability as well as own damage.

As a result, vehicle buyers were offered three choices –

1. 3-year third-party cover
2. 3-year third-party and 1-year own damage cover
3. 3-year third-party with 3-year own damage cover