In recent years, the implementation of High-Security Registration Plates (HSRP) has become mandatory across India. This move aims to standardise vehicle identification, reduce vehicle-related crimes, and enhance road safety.
However, beyond security and regulatory compliance, HSRP number plates also significantly impact car insurance policies. This blog will explore what HSRP plates are, their benefits, and how they influence your car insurance policy in India.
What is an HSRP Number Plate?
HSRP stands for High-Security Registration Plate, a tamper-proof license plate with unique security features. Unlike conventional plates, HSRP plates are made of aluminium and come with a chromium-based hologram and a laser-etched identification number. These plates are affixed with non-removable, snap-locking fasteners, making them difficult to tamper with or duplicate.
The primary objective of HSRP is to streamline vehicle registration, prevent theft, and curb the use of counterfeit license plates. As per government mandates, all vehiclesโnew or oldโmust be fitted with HSRP plates to comply with regulations.
How Does an HSRP Number Plate Affect Car Insurance?
While HSRP number plates were introduced primarily for safety and security, they also play a crucial role in shaping car insurance policies. Let’s look at how they impact vehicle owners when it comes to vehicle insurance claims, premium calculations, and additional benefits.
1. Enhanced Security Reduces Theft Claims
One of the significant advantages of HSRP plates is the reduction in vehicle theft. Since these plates are tamper-proof and linked to the vehicle’s chassis and engine number in a centralised database, stolen vehicles become easier to track. As a result, insurance companies experience fewer vehicle theft claims, leading to more stable car insurance policy pricing for customers.
2. Potential Reduction in Car Insurance Premiums
Insurance premiums are calculated based on various risk factors, including theft probability. With HSRP plates making car theft more difficult, insurers may consider offering lower premiums for vehicles fitted with these plates. Although not all insurers have introduced specific discounts, the trend suggests a potential reduction in car insurance costs in the future.
3. Faster Claim Processing & Verification
When filing an insurance claim, verification of vehicle details is a crucial step. The HSRP system allows insurers to quickly authenticate the registration details, reducing delays in processing claims. This is particularly beneficial for owners seeking settlements for accident-related damages under their vehicle insurance policies.
4. No Claim Bonus (NCB) Benefits & HSRP Compliance
The no-claim bonus car insurance feature rewards policyholders for not making any claims during a policy year. Since HSRP plates reduce theft risks and improve vehicle traceability, car owners are less likely to file theft claims. This ensures that policyholders can continue to enjoy their no-claims bonus, leading to discounted premiums when renewing their policies.
5. Legal Compliance & Avoiding Penalties
Failure to comply with HSRP regulations can lead to hefty fines and legal issues. If your vehicle is found without an HSRP plate, authorities may impose penalties, affecting your driving record exactlt like having third-party car insurance. This, in turn, could impact car insurance policy, as insurers consider an individual’s compliance history while determining premium rates.
What is The Link Between HSRP & No Claim Bonus (NCB)?
The no claim bonus car insurance benefit allows policyholders to receive a discount of up to 50% on their premium for every claim-free year. Since HSRP plates enhance vehicle security, car owners are less likely to file claims for theft-related losses. This helps them retain their no claims bonus over multiple years, resulting in significant savings on premium costs.
Also, some insurers may introduce special incentives for policyholders who ensure their vehicles comply with safety regulations, including HSRP compliance. Staying up to date with such developments can help car owners maximise their insurance benefits.
How to Get an HSRP Number Plate for Your Vehicle?
If your vehicle does not have an HSRP number plate yet, here’s how you can obtain one:
- Check Eligibility โ HSRP plates are mandatory for all vehicles registered before April 2019. Ensure your vehicle is eligible for the update.
- Visit the Official Website โ Different states have designated portals where you can apply for HSRP online.
- Provide Vehicle Details โ Enter the necessary information, including the vehicle registration number, chassis number, and engine number.
- Make Payment โ The cost varies by state and vehicle type. Complete the payment process online.
- Schedule Installation โ Once your application is processed, you will be given a date and location for plate installation.
- Receive & Install โ The authorised service centre will fix the HSRP plate securely to your vehicle.
Final Word
The introduction of HSRP number plates marks a significant step toward improving vehicle security in India. Apart from regulatory compliance, these plates also offer financial benefits by potentially reducing car insurance premiums and helping vehicle owners retain their no claims bonus. As insurance companies continue to incorporate vehicle security measures into their policies, staying compliant with HSRP regulations can be a smart move for every car owner.
If you haven’t yet upgraded to an HSRP number plate, now is the time to do soโnot just for legal compliance but also for long-term savings on your vehicle insurance and improved protection for your vehicle.
