Just as not all cars cost the same, all car insurance premiums also do not cost the same. Of the many factors that influence a car’s premium, one is the fuel type or variant of the car. Whether your car is a petrol or diesel variant affects the cost of car insurance premiums. Wondering why? The reason is simple. The car fuel type impacts many other factors that have a direct influence on the insurance cost. Some of those factors are:

1) Cost of the vehicle

The cost of the vehicle is important in determining insurance premiums. A diesel car is often priced higher as compared to its petrol counterpart. Since the price of a car is directly related to the cost of its insurance, the higher the price of a car the higher will be the insurance charge. You will find this when you compare the online car insurance cost for diesel and petrol cars.

2) Cost of repair

Cost of repair can have an impact on the insurance premium charged. Typically, a car with a diesel engine involves a higher cost of maintenance over the years. So, insurance companies tend to charge a higher premium for cars with a diesel engines when compared to their petrol counterpart. The same is also true for high-end cars and cars with expensive spare parts.

3) Insurance Declared Value or IDV

It is the estimated market value of a vehicle and has a direct impact on the cost of insurance premiums. Since the cost of a vehicle with a diesel model is higher, its IDV will also be higher, thereby affecting the cost of insurance. The decrease in the IDV of a diesel car would be slower so the renewals would still be more expensive than that for petrol variants.

4) Engine capacity

The engine capacity of the vehicles can also influence the cost of insurance premiums for the cars.  Since the engine capacity of diesel-driven cars is it raises the parameters on which the cost of insurance is valued. On the other hand, petrol-driven cars have a comparatively lower level of engine capacity.

5) Fuel efficiency

One of the most important factors that must be considered while buying a car is its fuel efficiency. Petrol cars are best when it comes to achieving initial power but diesel cars run best in higher gears. In the long run, diesel cars seem to be more fuel-efficient than petrol cars.

Owning a car is not enough. You must protect it with the right insurance policy to be able to take it out onto the roads. In fact, it is mandatory to have third-party insurance to drive your car on Indian roads. While third-party insurance protects you from third-party liabilities in case of an accident, it does not cover your damages or medical costs. For that, you must choose a different type of policy. Yes, there are different types of car insurance and you must get the one that meets your needs and budget. Understanding car insurance and its benefits would help you in selecting a policy that offers you ideal financial protection without being heavy on your pocket. Here’s what you must know about the various kinds of car insurance:

• A third-party liability policy

Indian law mandates every car owner to have a third-party liability policy. To ensure everybody can afford it, its premium is fixed by the IRDAI or Insurance Regulatory and Development Authority of India. The policy offers basic coverage and is limited to covering losses related to the third party only. The insurers do not have any control over the premium. Simplifying the insurance terminology:

• First party – policyholder or buyer of the policy
• Second party - insurance company or the insurer
• Third-party - an individual who demands compensation against damage to himself or his property, caused by the first party

Also known as a liability-only policy, it compensates for the following:

• Damage to vehicle or property of the third party

Any damage to the vehicle or property of a third party caused due to an accident involving the insured car is compensated by the insurer up to a specific amount.

• Injury to the third party

If an individual is injured in an accident caused by your car, he would get compensated. The policy would cover the financial expenses for their hospitalization and treatment. The amount paid would depend on the Motor Accident Claims Tribunal’s decision.

• Death of a third-party individual due to an accident

In the unfortunate event of the death of a third party due to an accident caused by your car, a lump sum financial amount would be paid by the insurer to the family of the deceased.

• Legal liabilities Your insurer will also take care of all the legal liabilities faced by you, the policyholder, in case of an accident. 

The policy works fine as long as your car is not damaged since the policy does not cover that. The entire repair or replacement cost for your car has to be borne by you. If you have an old car that you are planning to sell off, the basic third-party policy would be sufficient. However, you need to reconsider your decision if you have a high-end or brand-new car. In these cases, you may want to check car insurance of different types such as an own damage policy or a comprehensive policy.

• Own damage (OD) policy

It covers damages to your car due to accidental or non-accidental causes. Some of the damages covered by it include:

• Damage due to accidents

After an accident, take the help of your insurer to tow your car to the nearest network garage and get it fixed. Under a cashless claim, the insurer will directly pay the workshop for the repair work.

• Natural calamities

Under OD policy, the car would be financially covered against natural disasters such as floods, landslides, rockslides, and severe weather conditions such as storms, cyclones, and earthquakes.

• Manmade hazards

Damage caused due to manmade incidents such as riots, strikes, civil disturbances, torching the car, and vandalism is covered under the OD policy.

Times have changed. With the advent of new technologies in the automobile sector, more and more car manufacturers are investing in designing and manufacturing hybrid and electric vehicles. The hybrid or electric car not only reduces the burden of extensively utilizing fossil fuels for mobility but also offers an environment-friendly alternative to petrol and diesel cars. While both hybrid and electric cars are sustainable energy-driven cars, they still have some differences in terms of technology and efficiency. Today, we will focus on electric cars vs. hybrid cars.

What are hybrid cars?

As the name implies, hybrid cars have two engines—petrol as well as diesel. These vehicles are also known as hybrid electric vehicles as they use both, an internal combustion engine (ICE) and at least one electric motor to generate power. This cycle not only saves you money on fuel but also improves the efficiency of your engine. You cannot charge a hybrid car's battery by plugging it into a power source. Instead, you can charge it using the ICE and regenerative braking. A hybrid car's battery can also help in powering the auxiliary load and reducing engine idling. 

Benefits of hybrid cars:

• Cleaner emission:

Compared to the emission levels of ICE vehicles, hybrid cars are less polluting. This is because hybrid cars use both internal combustion engines and electric motors to turn the wheels.

• Fuel efficient:

Since hybrid cars include both internal combustion engines and electric motors, they utilize significantly less fuel than cars that simply have internal combustion engines. The additional power available with them makes them an environmentally-friendly cars. 

• Regenerative braking:

In hybrid cars, you don't need to put your car on halt for battery pack charge. Since the car's electric motor generates electricity whenever you apply the brakes, the battery gets recharged automatically.

Disadvantages of hybrid cars:

• Lower performance:

Since the primary objective of a hybrid car manufacturer is to improve its fuel efficiency, its power and acceleration are much lower than those of standard internal combustion engine vehicles.

• Expensive purchase:

Compared to internal combustion engine cars, hybrid cars are more expensive due to the presence of dual engines and related features. 

• High maintenance cost:

Due to the advanced technology used and the presence of dual engines, the maintenance costs of hybrid cars can dig a hole in your pocket. Also, to get your hybrid car repaired, you need the assistance of a certified mechanic as not all mechanics are trained in or are knowledgeable about hybrid vehicle maintenance. Therefore, it is advised that when you purchase a hybrid car, make sure to secure it with hybrid car insurance.

What are electric cars?

Electric automobiles, often known as electric vehicles or EVs, run on an electric motor instead of an internal combustion engine. This makes them pollution-free clean cars. EVs are often devoid of a fuel line, a fuel pump, and a tank. They need plugging into a charging port to draw power from the grid. The electricity in the EV is stored in the rechargeable battery. Interestingly, EVs accelerate faster and are lighter to drive than ICE cars. If you are planning to buy an EV, don't forget to secure it with electric car insurance.

Benefits of electric cars:

• High efficiency:

EVs have far more energy than fuel-powered vehicles. EVs are energy efficient since they convert 62% of their electric energy into the vehicle's power source. However, in ICE cars, the efficiency rate drops to just 21%.

• Zero emissions:

One of the most significant advantages of driving an electric vehicle is that you are helping to protect the environment. With zero tailpipe emissions, EVs are less polluting than ICE cars.

• High performance:

One of the most appealing aspects of driving an electric vehicle is that it produces maximum torque as soon as you press the accelerator pedal. When compared to traditional ICE cars, EVs are also easier to maintain due to fewer moving components.

Bringing in your first car at home is always special and so is taking it out on the roads to explore the world—think of all the adventure and memorable drives awaiting you. But before you embark on a drive, always make sure to carry your driving licence and car insurance documents along. Surely, you would not like to get caught by the traffic police and be penalised for driving without the required papers on the very first day of driving your new car. Also, make sure to follow all traffic rules and regulations to ensure your safety and that of others. For first-time car buyers, here are some tips for driving a car safely:

1. Slow Acceleration

Do you feel like pressing the accelerator and speeding along before others as soon as the traffic signal becomes green? This is common among most first-time drivers but you must control your impulses. Always increase the speed slowly as it is good for the engine as well. Bring the car to roll along slowly from a complete stop and then push the accelerator down in steps. Try to feel the position of the wheels to avoid potholes, a common feature on Indian roads.

2. Steer Steadily

Keep your hands firmly on the steering wheel to keep it steady. This is important for moving in a straight line on the road or during taking turns or changing lanes. Try to stay in the lane meant for your type of car and maintain adequate distance from other vehicles while taking turns or during changing lanes. In case you see a turn or exit coming up, move to the correct lane—left or right—a little early. You may cause problems to the other drivers if you suddenly bring your car in front of their car while taking a turn. The far-left lane is usually for exits and the centre lane for travelling long distances at a constant speed.

3. Control the Brakes

Do not push the brake all of a sudden. It can result in your car getting hit by another car or two-wheeler from behind. You may also hit a vehicle or a pedestrian if you are not able to control the brakes and bring the car to a stop abruptly. It is possible to injure yourself or your fellow passengers as sudden brakes can knock people out of the seats. Strap on the seat belts to keep the impact at a minimum. If you see the signals turning yellow, start applying pressure on the brakes to bring the car to a halt at the proper time. Despite that, if there is an unfortunate incident, inform your insurer immediately. You may call up the emergency number given on your car insurance policy to get help.

4. Do Not Over Speed

Adhere to the speed limits even if you are extremely confident about your driving skills. Rash driving, which is common on Indian roads, is the reason behind most of the accidents. It is for your safety as well as that of others on the road that you must drive at a medium speed or as specified by the traffic department. The traffic department takes into account several aspects such as road type, frequency of accidents, traffic volume, and visibility while fixing the speed limits for different types of roads such as highways, flyovers, and crossroads.

A car’s registration number is the key to information regarding the car’s present owner—for authorities as well as for the common man. Surprised? Don’t be. If you want to track down a car owner who may have either bumped your car and fled the scene or may have caused you trouble by blocking your car in a parking lot, then you can do it in a few easy steps. Today, we will look at how to find the owner of the vehicle by license plate number.

How to identify a car's owner from the registration number using the PARIVAHAN portal?

You can find the owner of the vehicle by license plate number by using the PARIVAHAN portal. To do that, don't stress much and simply follow the steps given below.

• Step 1:

Go to the PARIVAHAN official website: https://parivahan.gov.in

• Step 2:

Enter the car's registration number you intend to check.

• Step 3:

Input the verification code, or say, a CAPTCHA, given on the page. 

• Step 4:

Tap on "Check Status".

• Step 5:

Your screen will display all the relevant details related to the car.

How to identify a car's owner from the registration number using VAHAN?

VAHAN portal furnishes the vehicle registration details following the MV Act of 1988. The portal complies with the regulations of different states and UTs. Using the VAHAN portal, you can trace down the following details.

• Car owner’s name
• Car's registration date
• Vehicle class and fuel type (diesel or petrol)
• Car's chassis and engine number (not detailed in full)
• Vehicle's make and model along with manufacturer's detail
• Car's fitness duration
• PUC and insurance details
• Car's RC status and details of the financier 
• Car's emission standard

To fetch the details of a car owner using the VAHAN website, follow the steps outlined below.

• Step 1: 

Go to the VAHAN official website.

• Step 2: 

On the top of the page, you will find a navigation menu.  Tap on that menu, scroll down, and click on "Know Your Vehicle Details". 

• Step 3: 

On the page that appears on your computer screen, fill in the car's registration number. 

• Step 4: 

Input the human verification code and tap on the ‘Search Vehicle’.

• Step 5: 

Your screen will display all the necessary details of the car.

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:

• Fill up Form 29 with the necessary details online and take a print.
• 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.
• 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.
• 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 to car 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.

Often commuting by cab or your car makes the journey smooth. You may enjoy the thrill of being behind the wheel or prefer relaxing in the rear seat humming your favourite tune. Either way, do you wear a seatbelt whenever you are on the go?

Why wearing a seatbelt is important?

In a report, this year, WHO said wearing belts in the rear seat can reduce the risk of being killed and injured by 25% and 75% respectively. Closer home, surveys done by Maruti Suzuki India in 2017 revealed poor compliance with seatbelt laws as hardly 4% of respondents used seatbelts.Compared to 2020, deaths by road accidents increased by almost 17% in 2021. Do you know what was one of the major causes of death? Yes, not wearing a seatbelt.

How do seatbelts help in enhancing safety?

Seatbelts hold the occupants of the car in place and prevent them from being catapulted forward during an accident. While the seatbelt ensures that the individual stays in his/her place, the airbag’s job is to protect the head and chest from impact. During a collision, seatbelts provide the primary restraint, whereas slamming into an airbag in case of an accident reduces the impact. While all cars in India have seatbelts at the front and rear, they may not have rear airbags. For safe driving, you must get them as part of the accessories. 

Let’s look at what the Indian law says about seatbelts

We all know that wearing a seatbelt is mandatory while sitting in a front seat. But did you know it's compulsory for rear seats too? In India, most cars have rear seats that face the front. As per Indian law, car manufacturers must provide seatbelts for all such seats too and passengers must buckle them up. Breaking this rule can attract a fine of Rs 1,000 for the passengers. However, the execution of the rule remains a concern.

A 2019 report by SaveLIFE Foundation stated that not even 1% of Indians use rear seatbelts. What’s worse is that 23.9% of those surveyed did not even know about rear seatbelts. The study also revealed that 77% of the kids who travelled in the rear seat did not wear seatbelts.

In February, the Ministry of Road Transport and Highways proposed that all front-facing seats must have a Y-shaped seat belt. The proposal included the rear-middle seat as well. 

Debunking a few myths around seatbelt safety 

Myth: In case of fire or drowning situations, seatbelts trap you inside the car  
Fact: Two things to know here are—one, the chances of collision are way higher than a car catching fire or getting submerged in water. Two, there are very less chances of malfunctioning of the seatbelt release mechanism. The benefits outweigh the risks.  
 
Myth: If your car has airbags, you may skip wearing seatbelts 
Fact: As explained earlier, the two have very distinct roles and save you when used together. One without the other may prove useless.  
 
Myth: Seatbelts are needed only on highways 
Fact: Accidents can happen anywhere regardless of how short the distance or how slow you are driving. Always wear seatbelts.  

General seatbelt guidelines to follow 

Gone are those days when you had to pay a fixed yearly premium for your motor insurance policy. You can now buy a policy that charges you a premium based on your vehicle usage or driving behavior.

The Insurance Regulatory & Development Authority of India (IRDAI) has permitted general insurance companies in India to launch telematics-based motor insurance covers such as Pay as you drive and Pay how you drive, allowing vehicle owners to decide how much to pay on their insurance.

By utilizing technology's ability to transmit accurate data on vehicle location and driving behavior, IRDAI's new rule is a welcomed move as it creates a win-win situation for both insured and insurers in India.

What is Pay as you drive & Pay how you drive add-on covers?

Unlike any other car insurance policy in the market, these new policies are built to give you more control of your motor insurance costs. It allows you to prove you are a safe driver, and as a result, you can be rewarded with lower insurance prices on renewal. The lesser/ better one drives, the lower premium they will have to pay.

These insurance add-ons also enable insurance companies to offer reduced average pricing, appeal to low-risk individuals, reduce claims management costs, and improve the overall customer experience.

How do these add-ons work?

This type of add-on works differently if you opt for a pay-as-you-drive or the driving behavior-based cover.

Pay as you drive

Pay-as-you-drive cover operates on the simple rule that you should pay less insurance price if you drive less. Since you are not out on the road often, you have a low accident risk, and your insurance bill should reflect the same.

This type of insurance allows you to insure your car based on the kilometers you drive in a year. Depending on your driving needs, you can opt for a mileage plan between 3000 to 10,000 km/year. If you exceed the kilometers of your plan, you also have the option to top up your insurance coverage with more km for that particular policy year.

According to a survey conducted by Feedback Consulting, 75% of Indian commuters travel less than 1,000 km a month (or roughly less than 35 km a day), and most people simply travel from home to office. The Pay-as-you-drive add-on guarantees policyholders do not have to pay a huge premium as per the make and model of the car but rather how much they use their vehicle

Pay how you drive

The premium for Pay how you drive cover is calculated based on how you drive your car while on the road. The better and safer you drive, the lesser you pay.

The telematics device uses GPS technology to calculate your driving scores, vehicle health and other metrics to collect facts about your driving. This information collected is then used to calculate a driver score that is unique to you.

If it's good, you could reduce your insurance premium at the time of renewal and get a thumbs up for safe driving. While there are no penalties yet for low driving scores, the premium discounts these drivers can avail of are also very low. Drivers can also use these scores to improve their driving and build better habits.

Who should consider buying Pay how you drive cover?

Many drivers may benefit from a behaviour-based telematics car insurance cover if they drive safely and avoid accidents. This cover especially makes sense for demographic groups that are charged above-average premiums, such as:

Who should consider buying Pay as you drive cover?

The pay-as-you-drive cover is a good fit for:

How much can I save with Pay as you drive insurance?

Since standard car insurance premiums depend on geography, make-model, and age of the vehicle and are not based on their usage, most car owners who opted for Pay as you drive policy saved on their premiums.

Our experience with the Pay as you drive policy under the Sandbox regulation in 2020 also helped us learn that 56% of customers chose to Pay as you drive over conventional insurance due to its cost-effectiveness and usage-based premiums. In comparison, 22% bought this policy due to its telematics benefits.

In Conclusion

While PAYD & PHYD can help many save on their premiums, sometimes, you may not see a discount even if you are a good driver. If you commute to distant locations for work every day and drive above the average speed often, you're more suited for a standard insurance plan. 

These add-ons are suitable for customers with multiple or expensive cars looking for a motor policy that gives them more control over how much they spend on insurance every year. 

Premium Petrol vs Normal 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 car 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.

It is important to understand your car insurance policy and how it works when another driver crashes your car

One fine morning Mr. Bose called his close friend, Devyani and tells her that his car has gone for maintenance service, but he has some important errands line up for the day. Devyani happily obliged him when he asked to lend her car for the day. Hours later, he called her again to inform that he has met with an accident.

You can find yourself in Devyani’s shoes at some point in your life. You might be wondering if your car insurance cover is still applicable when your friend crashes your car. At such a juncture, several questions can make you anxious.

• Can I claim the insurance on my damaged car?
• Is my friend covered under the insurance plan?
• Who will pay for the compensation amount against the damages?

Do Car Insurance Policy Cover Other Drivers?

You might be scratching your head on the above question. The good news is that mostly other drivers are covered under car insurance. ‘Permissive Drive’ rules are applicable in such instances. The driver should be driving your car with your consent along with a valid driving license.

According to Indian motor tariff, anyone can drive your car under the permitted laws. Hence, don’t worry before lending your car to your friends or family members. You can make a claim with your motor insurance company even when your friend crashes the car.

Who Will Pay The Compensation Amount?

If your friend borrows your car and he/she meets with an accident damaging it, normally, your insurer will pay the compensation amount under ‘collision coverage’, and you will have to pay the deductible. If your friend is also injured while driving, your insurance may pay for the driver under ‘liability coverage’ unless he/she is excluded by the policy.

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.

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.