With rapid progress in technology promulgated by willingness of regulatory and government authorities, the insurance sector in India has witnessed a sea of advancement in the last two decades. This evolution has greatly benefitted the end user, saving him from all superfluous procedures that probably took forever to be accomplished.
One such feature which has made life easier for a car insurance holder is the option to renew car insurance online without any hassles. National Insurance Company Ltd., India’s leading state-owned general insurance service provider operates in a diversified portfolio which includes insurance coverage for cars. It extends the benefits of online revival of policies issued not only by them, but also from other insurance companies in easy steps.
National Motor Insurance at a Glance
The motor insurance plans offered by National Insurance are as follows:
Liability-only plan - Every vehicle on Indian roads should be equipped with a minimum of third-party liability insurance. The coverage offered by the National Insurance third-party liability plan is as detailed below:
- Insures the policyholder against legal liability to a third party in an accident.
- This cover does not offer protection to the insured vehicle itself.
- The risks covered by the plan are:
- Injury or death of third party
- Third-party property damage
Comprehensive/package plan - The comprehensive car insurance plan from National Insurance offers wider coverage when compared to the liability-only plan.
- This plan provides own-damage cover and third-party liability cover.
- The plan also protects the owner-driver of the insured vehicle from injuries/death.
- The incidents covered by the plan are:
- Accidents, fire, explosion, lightning, and self ignition
- Damages to the insured vehicle while in transit via rail, road, air, lift, and inland waterways
- Theft, burglary, or house-breaking
- Terrorist activities, strikes, riots, or malicious acts
- Natural disasters such as floods, earthquakes, storms, rockslides, and landslides
The National Insurance car insurance does not offer coverage for the following events:
- Wear and tear of the vehicle with age, consequential loss, electrical and mechanical breakdown, breakages or other failures.
- Damage to the tyres of the car, unless the vehicle itself is damaged in the process. In this case, the liability of the insurance company is limited to 50% of the repair costs.
- Driving while intoxicated with alcohol or drugs.
The policyholder can choose to extend the coverage under the policy by opting for add-on insurance covers. This includes insurance for loss of accessories, personal accident cover for the passengers, and increased third-party property damage cover up to Rs.7.5 lakh.
Discounts Offered By National Insurance Company Under Car Insurance
- The car insurance plan from National Insurance offers No Claim Bonus (NCB) for policyholders who do not raise any claims in a policy year. This is a great method of incentivising drivers to stay safe on the roads. The NCB can be converted into a discount in renewal premium for the subsequent policy year.
- Discounts are also offered for vehicles that have anti-theft or other security devices installed.
- Additionally, cars that are specifically designed or modified for use by handicapped/blind/mentally challenged people are eligible for premium discounts.
National Car Insurance Premium Calculator
It is advisable to calculate the premium for your National car insurance policy by using the online calculator tool available at neutral financial websites such as BankBazaar.
Through the online premium calculator tool, you can identify the approximate amount that you will have to set aside as premium. This is very useful when you are setting a budget for your financial needs.
- The car insurance calculator tool uses the following parameters as input:
- Your personal details, such as claim history, NCB earned, age, profession, etc.
- Details about the car, such as make and model, engine capacity, area of registration, date of registration, etc.
- The tool provides you an estimate of the premium in the form of a quote.
- If you agree to the quote, you can proceed with the purchase of the policy at the same website, if desired.
It is also possible to use the National car insurance premium calculator at the insurer’s website for identifying the premium for motor insurance. The tool works like the online premium calculator tool at neutral financial websites explained above.
National Car Insurance Renewal Procedure
By using the web portal to renew your existing car insurance policy, you can be eligible to receive a discount along with NCB (No Claim Bonus) if you qualify. Log onto the online portal of the insurance company to begin the procedure. National Insurance Company Ltd. allows you to easily renew insurance covers that are due for renewal in the next 30 days. One can also renew car insurance policies issued by other insurers(switch over) online. Policy renewals from other insurers is eligible for a 10% discount.
There are two separate links on the homepage for renewal. One leads to renewal of policies issued from National Insurance and other for insurance cover from other insurers. Simply fill the relevant fields with policy number and email id to begin the procedure and follow the “on screen” instructions to complete the process. Keep handy, details of your bank account or credit card for online payment. The encrypted environment safeguards bank and credit card details.
You receive an instant e policy available for download in a printable format. A copy of this document is also emailed to your registered email address. The policy document will be posted to the communication address with company seal and signature in designated working days.
Why Should You Renew National Motor Insurance Policy Online?
Since today’s digitally native consumer prefers to buy everything from train tickets to clothing, groceries and electronic goods online, the insurance sector has also taken certain steps so as to not fall behind. Most insurance companies today have a highly secure website through which you can buy and renew insurance online. The advantages of online policy renewal are as follows:
- Security - Insurance providers utilise security systems that adhere to global security standards on their online portals. This ensures that your confidential information is not compromised. It is also found that the incidents of fraud are almost nil when you renew motor insurance online, unlike the renewal process that engages an insurance agent.
- Cost-effective - Renewing car insurance online is cheaper because the insurer offers various discounts for these transactions. From the perspective of the insurer, when a policy is sold online there are significant cost parameters that are eliminated from the workflow. This includes the distribution and processing costs. The insurer passes on these cost savings to the customer in the form of discounts.
- Limited paperwork - The online policy renewal process is free of excessive paperwork.
- Easy and convenient - One of the most significant benefits of renewing insurance online is that the entire process is hassle-free and the policy is issued instantly.
- Easy endorsements - An endorsement is a change that is made to a policy document. In case you have an online copy of the document, it is easy to update it with endorsements. For physical policies, you will have to resubmit a lot of information, making the addition of endorsements a time-consuming process.
- Backup of policy documents - Having an online repository with your policy documentation is useful as it is stored safely and can be easily retrieved when needed.
Documentation Required To Raise A Claim Under National Car Insurance Policy
In case your insured vehicle is involved in a situation that qualifies for a claim (as per the policy terms and conditions), you can lodge a claim with the insurance company. The steps to be followed for the same are:
- After a loss has occurred, contact the police and get an FIR filed. It should be noted that the FIR is mandatory for losses due to fire, theft, burglary, accidents, damage to a third party, etc. It is not mandated for damages due to natural calamities, such as earthquakes, floods, inundation, etc.
- You will also have to intimate the policy issuing office immediately.
- You should then update the claim form accurately and read through it to verify that all information provided is correct.
- Submit the form to the policy issuing office either directly or through an authorised agent. The documents that need to be submitted along with the claim form are:
- Police reports and FIR
- Doctor’s prescriptions and reports of tests
- Bills from the medical shop
- Admission and discharge certificates from the hospital
- The policy issuing office will send a surveyor to assess the loss. The insurance company may also employ a team of doctors to verify the claim filed.
- The claim is eventually settled by the policy issuing office. The payment is made to the car owner as a lump sum settlement.
- The insurer may also release a provisional payment to the policyholder if the case is being scrutinised. This is however, based on the merits of the case.
- The insurance company may request for additional documentation on a case by case basis.
- The insurer recommends that you lodge claims directly at the branch office and not through the online route.
Why Should You Choose National Car Insurance?
National Insurance Company Ltd., founded in 1906, is the oldest general insurance company in India. The company was the first to introduce product customisation for the rural and corporate customer. This concept has attained a lot of visibility with the farmers’ package policy that is prevalent today. National Insurance was also the first insurance provider to enter into an alliance with automobile giant Maruti and two-wheeler major Hero MotoCorp, among many others. The company was also a pioneer in the field of Bancassurance in the country, partnering with some of the largest banks in India.
Today, National Insurance is India’s second-largest non-life insurance provider on the basis of its gross direct written premiums (GDWP). Motor insurance is also the company’s largest segment. So when you buy insurance for your vehicle, it is better to purchase it from a reliable player with a good track record and accountability.
National Insurance has also been certified with exceptional ratings, signifying its strong capitalisation, robust market presence, and consistent performance in investments.
National Car Insurance FAQs
- By renewing car insurance policy issued by other insurers, can I be eligible for the No Claim Bonus(NCB) earned by in the previous term?
- Why should I renew online when I can contact my agent or visit the nearest office of National Insurance?
- I do not use my car too often. Do i really need to insure it?
- What is the rate of depreciation for a new car?
- Is it possible to buy a National car insurance Personal Accident cover online?
You can avail the NCB by renewing your insurance with National Insurance online with minimal information. Policy details are automatically retrieved to sync information and pass on the NCB rebate even though it was issued by a different insurer.
You have the advantage of documentation free renewal when done online. Plus, you receive a valid instant e policy that can be printed for reference. National Insurance may offer periodic discounts for online payments. All these benefits work to your advantage.
The Motor Vehicles Act mandates that the vehicles on the roads are insured by a minimum insurance, i.e., the third-party liability cover. This is applicable to all vehicles, even the ones that are not used very often. Since the law dictates that your vehicle is equipped with an insurance cover, it is advisable to buy a suitable policy for the car.
A new car depreciates as per the following table:
|Age of the car||Rate of depreciation|
|Brand new vehicle||5%|
|Up to 6 months||5%|
|6 months to 1 year||15%|
|1 year to 2 years||20%|
|2 years to 3 years||30%|
|3 years to 4 years||40%|
|4 years to 5 years||50%|
|Above 5 years||As decided by the insurer and car owner|
These values are used for the calculation of the vehicle’s IDV. It should be noted that the IDV is calculated at 95% of the total cost of the vehicle, i.e., with 5% depreciation, even when it is new.
Yes, National Insurance Company Ltd. offers a Personal Accident cover for the owner driver of the insured vehicle. This cover can be purchased through the insurer’s website instantly. It is also possible to renew the Personal Accident cover through the insurer’s website.
GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017