The Evolution of Car Safety Standards and How They Affect Insurance

Historical Overview of Car Safety Standards

India’s car safety journey began with basic features like seatbelts and crumple zones. Until the early 2000s, safety wasn’t a strong selling point. However, as global awareness increased and India’s road accident statistics drew concern, regulatory bodies like the Ministry of Road Transport and Highways (MoRTH) took action.

 

Key milestones:

• Seat belts became mandatory in the front seats in 1994.

• Airbags, once a luxury, became compulsory for all passenger cars manufactured after July 2022.

• India’s own Bharat NCAP (New Car Assessment Programme) was introduced in 2023. It provides standardised crash test ratings aligned with global benchmarks.
   

These improvements were not just technical upgrades—they were responses to a growing need for occupant protection and public safety. According to MoRTH’s Road Accidents in India annual report, over 1.5 lakh people die annually on Indian roads, highlighting the urgent need for robust vehicle safety regulations.

 

Modern Safety Innovations In Vehicles

Today, car buyers are not just choosing mileage or aesthetics—they’re looking at whether a car has ADAS, reverse parking sensors, or even pedestrian detection.

 

Role of ADAS (Advanced Driver-Assistance Systems)

ADAS technology includes a suite of features like:

• Adaptive cruise control

• Lane departure warning

• Emergency autonomous braking

• Blind spot monitoring 

These systems reduce driver error and improve overall road safety.

Integration of Automated Braking, Lane Assist, and Collision Avoidance Technology

Several Indian brands are now integrating Level 1 ADAS into their higher-end models. Global automakers operating in India are going even further. These features don’t just improve safety; they may also impact a car’s insurance bracket.
 

How Safety Features Impact Insurance Premiums

Your insurance provider evaluates risks based on multiple factors, and a vehicle’s safety rating is a key one.

 

Higher Premiums for Vehicles with Advanced Safety Features

Cars equipped with multiple airbags, electronic stability control, or ADAS features tend to incur fewer accident-related claims. Although this reduces risk for the insurer, it may lead to a higher Car Insurance premium due to the higher Insured Declared Value (IDV).

 

How Crash-Test Ratings Influence Car Insurance Costs

Cars rated 4 or 5 stars in the Bharat NCAP or Global NCAP may be perceived as less risky by insurance companies. This is because higher crash test ratings imply better crash survivability and reduced liability for insurers.

 

The Balance between repair costs and reduced accident claims

One complication is the high cost of repairs for advanced safety technology. While features like radar sensors and smart cameras reduce accident frequency, they are expensive to replace when damaged. Thus, some cars with high-end features may still attract higher own-damage premiums. Yet, the overall claim volume tends to drop, keeping car safety features and insurance premiums delicately balanced.

 

Conclusion

As India shifts gears towards safer mobility, understanding the evolution of car safety standards isn’t just academic—it’s practical. Buyers should factor in both protection and insurance implications when selecting a vehicle. The better the vehicle safety regulations adhered to by the car, the greater the chance of saving on your premium.

  

If you're considering a safe and cost-efficient insurance option, Shriram Car Insurance  provides flexible plans that reward safety. With add-on covers like Zero Depreciation, Engine Protection and more, they ensure your modern vehicle and its cutting-edge safety tech are well-protected. Explore our plans today.

 

FAQs

1. Do safer cars always have lower Car Insurance premiums?

Not always. While they reduce accident risk, high-end safety components can increase repair costs, which may raise the own-damage portion of your premium.

 

2. What are crash-test ratings, and why do they matter?

Crash test ratings measure how well a car protects its occupants in a collision. In other words, it implies how safe your car is.

 

3. Does every insurer in India consider vehicle safety features in premium calculation?

Most leading insurers provide discounts on Car Insurance premiums for installing anti-theft devices approved by the Automotive Research Association of India (ARAI). While additional safety features can improve perceived risk, they may lead to a higher IDV and thus, a higher Car Insurance premium. Always check with your insurer for specific details.

 

4. What’s the difference between Bharat NCAP and Global NCAP?

Bharat NCAP is India’s indigenous crash testing programme, while Global NCAP is an international standard. Both assess cars similarly, but the former caters specifically to Indian road conditions and vehicle usage.