Modified wheels and exhausts get car insurance claims denied in India

What owners report

Team-BHP's modifications and accessories forum, and its separate insurance and loans section, carry a long running argument that owners keep returning to. Search results show at least half a dozen separate threads on this, running from an old thread simply called "Insurance after Modifications" to newer ones with a specific car and a specific insurer named in the title.

In one, an owner says an ICICI Lombard surveyor initially denied a claim because the car carried stickers the surveyor read as signs of racing, and because a free flow exhaust had never been endorsed on the RC or the policy. The thread title notes the claim was "now resolved" after the owner pushed back. In another, a Hyundai Venue N Line owner's Return to Invoice claim excluded the dealer fitted accessories that were part of the original purchase, with ICICI Lombard again named. A separate, older thread describes a claim rejected because tubeless tyres had been fitted to a Ford Ikon.

A different cluster of threads, tied to specific cars such as the Maruti Ertiga, the Ford Fiesta, the Honda City, the Skoda Yeti, the Chevrolet Cruze and the Volkswagen Vento, deals with alloy wheel and tyre upgrades. The pattern owners describe there is consistent even though we could not open the pages directly: a dealer will sell a same size alloy wheel without comment, but a wheel of a different size or offset can be used later to deny a suspension warranty claim, and dealers rarely raise this until a problem actually occurs.

We found no case where a maker or insurer had posted a public reply on these specific threads. None of the forum posts can be treated as a ruling on any individual's claim, only as a repeated pattern of owners asking the same question for years.

What the law and insurers actually say

Section 52 of the Motor Vehicles Act, 1988, says no owner may alter a vehicle so that it no longer matches its registration certificate. A genuine structural alteration needs the RTO's approval in advance, or must be reported to the RTO within 14 days with the registration certificate and the fee. [[graphic:1]]

On the insurance side, a policyholder is required to tell the insurer about any change that alters the vehicle from what was declared when the cover was bought, because that changes the risk the insurer priced in. An alloy wheel of the same size, offset and load rating as the factory fitment does not usually need an RC endorsement. A different size wheel, a lowered or raised suspension, a free flow exhaust or any other undeclared change gives an insurer grounds to question a claim, whether or not that specific change caused the damage.

Maruti Suzuki's position, as described to owners, is not a blanket refusal. The warranty is voided only where the company can show the accessory caused the failure, for instance a wrong offset wheel producing uneven CV joint wear backed by an alignment report and wear pattern photos. Under the Consumer Protection Act, 2019, the burden of proving that link sits with the manufacturer or the insurer, not with the owner.

What an owner can do

Before fitting alloy wheels, a lowering kit, an exhaust or hard wired electronics, ask the dealer in writing whether it affects the warranty, and tell the insurer before the next renewal. If a wheel or tyre size changes from what is on the RC, get an RC endorsement at the RTO and update the policy, since an unendorsed change is the first thing insurers point to. Keep invoices, fitment certificates such as the JWL or VIA mark on alloys, and photos, so the burden of proving a part caused a failure stays where the law puts it.

If a claim is rejected, write first to the insurer's own grievance cell. If that does not work, take it to IRDAI's Bima Bharosa portal at bimabharosa.irdai.gov.in, call the regulator's toll free number 155255, or email complaints@irdai.gov.in. For a warranty refused at a dealer, escalate in writing to the manufacturer's customer care, and if that fails, call the National Consumer Helpline on 1915 or 1800 11 4000, or file at consumerhelpline.gov.in.

Sources

• Insurance after Modifications, Team-BHP
• ICICI insurance claim being denied due to FFE & Stickers, Team-BHP
• Return to Invoice, Includes Dealer accessories, Rejected by ICICI Lombard, Team-BHP
• Does alloy wheel change void the warranty on a new car? Team-BHP
• Why You Should Think Twice Before Modifying Your Car, The Wire
• Claim rejected? Here's how to file a complaint on IRDAI's Bima Bharosa
• National Consumer Helpline, contact details