All about anti-theft devices and their impact on car insurance

Installing an anti-theft device in your car does more than reduce the risk of theft. If the device is approved by the Automotive Research Association of India (ARAI), it can also earn you a discount on your car insurance premium under the Indian Motor Tariff (IMT 10) clause. The discount is typically up to 2.5% on the own-damage premium, which adds up over the years, especially for higher-value vehicles. Understanding the types of devices available, the certification requirements, and how the discount is applied helps you make a practical decision about both vehicle security and insurance savings.

What is an anti-theft device in a car?

An anti-theft device is a security system installed in a vehicle to deter theft or unauthorised access. These devices work by either physically preventing the car from being started or moved, triggering audible or visual alarms, or enabling real-time tracking of the vehicle's location. The device can be factory-fitted by the manufacturer or installed after-market by the vehicle owner.

What is an anti-theft device in car insurance?

In the context of car insurance, an anti-theft device refers specifically to a security system approved and certified by the Automotive Research Association of India (ARAI). When such a device is installed in your car, you become eligible for a premium discount under the IMT 10 clause of the Indian Motor Tariff. The insurer requires proof of ARAI certification to apply the discount, which means not all anti-theft devices qualify for the insurance benefit.

How does an anti-theft device work in a car?

Anti-theft devices use different mechanisms to prevent or deter vehicle theft.

• Car alarms. Trigger a loud siren and flashing lights when unauthorised entry or movement is detected, to draw attention and deter the thief.

• GPS tracking systems. Use satellite-based tracking to monitor the car's real-time location. If the car is stolen, the owner and police can track and recover it.

• Mechanical immobilisers. Physical locking devices, such as steering wheel locks or gear shift locks, that prevent the car from being driven.

• Kill switches. Hidden switches that cut the electrical circuit or fuel supply, preventing the engine from starting without the owner’s knowledge of the switch location.

Types of anti-theft devices for cars available in India

Note: Only specific models approved by ARAI qualify; not all devices in a category are eligible.

Benefits of installing anti-theft devices

• Reduced theft risk. The primary purpose is to deter theft attempts or help in recovery if the car is stolen.

• Insurance premium discount. ARAI-certified devices qualify for a discount of up to 2.5% on the own-damage premium under IMT 10.

• Lower claim frequency. Cars with anti-theft devices are less likely to be stolen, which supports a cleaner claim record and NCB retention.

• Real-time monitoring. GPS trackers allow you to monitor your car’s location at all times and receive alerts for unusual movement.

• Improved resale value. A car with a quality anti-theft system installed may command a marginally better resale value.

How to install anti-theft devices

• Professional installation. Get the device installed at an authorised service centre or an ARAI-approved facility to ensure it meets certification standards.

• Obtain the ARAI certificate. After installation, get an official certificate confirming the device type and ARAI approval. This document is required by the insurer to apply the premium discount.

• Inform your insurer. Share the installation certificate with your insurance company to activate the IMT 10 discount on your next premium payment or renewal.

Things to consider while choosing an anti-theft device

• Budget. Prices range from ₹500 for basic car alarms to ₹15,000 or more for GPS tracking systems with subscription services.

• Location and parking conditions. If you regularly park in unsecured areas or on the street, a GPS tracker combined with an alarm provides the best protection.

• Insurance requirements. Ensure the device is ARAI-approved to qualify for the premium discount. Not all commercially available devices carry ARAI certification.

• Ease of installation. Some devices, like steering wheel locks, are simple to use, while GPS systems and kill switches require professional installation.

• GST impact. GST at 18% applies to the purchase price of the device. Factor this into your cost calculation when comparing the device cost against the premium savings.

What is IMT 10 and its relevance to anti-theft device discounts?

IMT 10 is a clause under the Indian Motor Tariff that standardises the premium discount for vehicles fitted with ARAI-approved anti-theft devices. The clause allows insurers to offer up to 2.5% discount on the own-damage premium when the policyholder provides proof of an approved device installation. This discount is applied at the time of policy purchase or renewal and can be combined with other discounts, such as NCB.

How much discount can I get on the car insurance premium for anti-theft devices?

The standard discount under IMT 10 is up to 2.5% on the own-damage premium. For example, if your OD premium is ₹20,000, the discount would be up to ₹500 per year. While this may seem modest, the discount applies every year and compounds with NCB savings. Over a 5-year ownership period, the cumulative savings can partially or fully offset the cost of the device itself.

Impact of anti-theft devices on car insurance premium calculation

The anti-theft device discount is applied to the own-damage premium before GST is calculated. It can be combined with the NCB discount, voluntary deductible discount, and any other applicable reductions. The third-party car insurance premium, which is fixed by IRDAI, is not affected by the installation of an anti-theft device. The overall impact on the total premium depends on the vehicle's IDV and the base OD premium.

Can I transfer my anti-theft device if I change my car?

Some devices, such as GPS trackers and kill switches, can be physically transferred to a new car, though reinstallation and recertification may be required. Mechanical devices like steering wheel locks are transferable by default. However, you will need a fresh ARAI certificate for the new installation to continue receiving the insurance discount. Inform your insurer about the transfer and provide updated documentation.

Conclusion

Anti-theft devices reduce the risk of vehicle theft and can earn you a premium discount of up to 2.5% on the own-damage portion of your car insurance under the IMT 10 clause. The device must be ARAI-approved and the installation must be certified for the discount to apply. Common devices include car alarms, GPS trackers, mechanical immobilisers, and kill switches, with costs ranging from ₹500 to ₹15,000. The discount applies annually and can be combined with NCB and other reductions. Choosing a device that matches your security needs and budget, getting it properly installed and certified, and informing your insurer are the key steps to benefit from both improved security and lower premiums.

FAQs

Is it mandatory to install an anti-theft device in my car?

No, it is optional. However, installing an ARAI-approved device can earn you a premium discount and reduce the risk of theft.

Do new car models come with built-in anti-theft devices?

Yes, many new cars include basic immobilisers and alarms. Installing an additional ARAI-certified device can still qualify for premium discounts.

How much premium discount can I get for an anti-theft device?

Up to 2.5% on the own-damage premium under the IMT 10 clause, subject to ARAI certification and insurer approval.

What is IMT 10 in car insurance?

IMT 10 is an Indian Motor Tariff clause that standardises premium discounts for vehicles fitted with ARAI-approved anti-theft devices.

Can anti-theft device discounts be combined with NCB?

Yes, the anti-theft discount can generally be combined with NCB and other applicable discounts, subject to the insurer’s policy terms.

What documents are required to claim the anti-theft device discount?

An official installation certificate from an authorised centre confirming ARAI approval is required by the insurer for the discount.

Does car insurance cover theft of personal belongings inside the car?

No, standard car insurance does not cover personal items inside the vehicle. Separate coverage or a home insurance policy may be needed.

Are subscription fees for GPS trackers covered by insurance?

No, GPS tracker subscription fees are borne by the vehicle owner and are not reimbursed or covered by the car insurance policy.

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