National Insurance Company Limited (NICL) is a fully central government owned general insurance company based in India. The company headquartered at Kolkata was established in 1906 and nationalised in 1972. NIC's gross direct premium income has steadily grown to about INR9000 crores rupees in the financial year 2012-13.
National Car Insurance Policy Highlights Updated on 23 Jan 2020
|Third Party Cover||Upto 7.5 L|
|Incurred Claim Ratio*||121.67%|
|Net Earned Premium*||5008.23|
*For Year 2017-2018
The company lists over 15,000 skilled employees in its rolls, with 1,340 offices and 373 business centers across India, and is operational in Nepal too. The company has been recognized as ‘Best in Service’ in the Motor and Health classes of the insurance business which comprise of 63% of the Indian non-life insurance market. In terms of Motor Insurance, the company has extensive tie-ups with leading automobile makers including Maruti, Tata Motors, Nissan, Honda, etc. When it comes to insurance in India, NIC is definitely a leading choice.
Private Car Insurance from National Insurance Company Ltd.
The Motor Insurance policy from National Insurance Company (NIC) is highly pro-customer and brings in a range of features that provide 100% protection to your cherished set of wheels. With regular features such as protection against unintentional loss or damage caused to your car, theft, or the involvement of your vehicle in accidents that could have caused injury, loss of property or death of a third party, a network of experts who give new meaning to the concept of customer support and the simplicity of purchasing the policy online, make the private car insurance from NIC a hearty proposition.
Key Highlights & Features of NIC Motor Insurance
- Covers vehicles used for social, domestic, and professional purposes (excluding carriage of goods by a driver other than the registered owner) as used by the insured or the insured’s employees. This excludes the use of the vehicle in cases such as for hire or reward, speed tests, reliability trials, pace setting, racing, and any scenario involving motor trade.
- Additional cover for loss of accessories, legal liability to paid driver, personal accident to the owner and other occupants of the car, and increased legal liability to property damage concerning a third party to the tune of Rs.7.5 lakhs.
- Provision for ‘No Claims Bonus’ if no claims are issued through the policy tenure. Also, discounts are applicable when opting for higher voluntary excess.
- Generally, annual policy tenures are issued. However, exceptions do exist to this rule.
- Purchasing the Motor Insurance is very simple- Buy online using credit/debit card or net banking. It takes just 5 minutes!!
- Avail discount for approved anti-theft equipment installed in the vehicle. There is also concession for custom designed vehicle that would be used by blind, handicapped or mentally challenged people.
What are the Coverage Options Available under National Car Insurance Scheme?
Insuring your car is mandatory in India as per various motor vehicle laws enacted by both state and central governments. Two types of coverage options are available under National car insurance:
- Liability-only cover: This type of coverage insures you only against third-party legal liability arising out of an accident involving your car. It covers the risk of injury or death of a third party and third-party property damage up to 7.5 Lakhs. In case of a mishap, no protection is offered to your vehicle or its occupants.
- Package Cover: Also known as comprehensive cover, this is an all inclusive which covers all liabilities which includes damages to own vehicle, self, occupants of the car along with statutory provisions for third-party damages.
Sum Insured for the NIC Motor Insurance
The coverage for your cherished vehicle will depend upon the manufacturer’s listed selling price, while subtracting the depreciation factor for each year or the Insured Declared Value (IDV). Herein, the IDV is the max amount payable in the event of a claim raised in relation to the total loss or theft of the vehicle.
Incidents Covered under the Private Car Package Policy
|Third Party Liability||This covers situations wherein your vehicle was involved in an accident that caused loss, damage to property (payable upto Rs.7.5 lakhs) and/or injury, death to a third party|
|Own Damage Cover||
|Personal Accident Cover||As part of the overall motor insurance, and in accordance with the Motor Vehicles Act, NIC provides personal accident cover in the event of your unfortunate accident while driving. This accident cover can also be extended to passengers, whose number equals the maximum permissible occupancy in the vehicle.|
Exclusions - Incidents that are not Covered by the Policy
- Anything from loss, wear and tear resulting from prolonged use as well as electrical and mechanical breakdowns or failures.
- Damage to the tyres of the vehicle. However, tyres are covered under the policy when they are damaged in the event of an overall vehicle accident, when the liability of NIC equals 50% of the cost of replacement.
- Damage/accidental loss caused to vehicle when the driver, or the driver assigned by the insured, was driving under the influence of alcohol or other mood/mind stimulating substances.
- Cost incurred for automobile parts and allied labour, failure of which led to the accident.
Why Should You Buy Insurance from National Insurance Company Ltd.?
Coming from one of India’s oldest insurers, the questions of reliability and operational competence takes care of itself. The Motor Insurance from the National Insurance Company is tailor-made for those who seek a simple, all-inclusive, robust and scalable insurance policy to protect their investment on their chosen set of wheels. Breathe a sigh of relief, and be protected against a range of natural and man-made calamities with Motor Insurance from NIC.
NIC was the first Indian insurance provider to get into strategic partnerships with automobile industry giants such as Hero MotoCorp and Maruti. These alliances brought about landmark reforms in the method of service delivery in the automobile industry.
NIC was also the pioneer in establishing Bancassurance relationships with the largest banks in the country. The company has been accredited with stellar ratings and have received several awards for its innovative reforms, consistent performance in the investment space, and strong market presence.
Depreciation in National Car Insurance
Depreciation is the loss in the value of a car over a period of time. The rate of depreciation is applicable from the time a car is purchased. The insurance company calculates the Insured Declared Value (IDV) of the vehicle based on its depreciation. IDV is effectively the manufacturer’s listed price of the vehicle minus the depreciation.
Depreciation is applicable to each part of the car, except that made of glass. In order to protect your vehicle from depreciation, you can opt for the zero depreciation add-on cover, also referred to as the nil depreciation cover. This add-on cover can be purchased from the insurance company by paying an additional premium. It can be added to the comprehensive motor insurance policy to amplify its coverage.
If the insured vehicle suffers a partial loss, and it was found that the damaged parts can be replaced at a workshop, the nil depreciation cover provides you the complete amount incurred for the replacement of parts. This add-on cover is not valid for total loss of the car. For luxury cars the cost of car parts would be very high; hence it is advisable to protect such vehicles with this insurance.
It is important to be aware of the depreciation element of your car as it would help you understand the impact it has on your car insurance. You can then avail solutions that offset the effects of depreciation and save considerably.
The rate of depreciation on car parts is as follows:
- If there was a paint job done on your car, a depreciation rate of 50% will be applied to the cost of painting material. The insurer reimburses only the remaining amount. If the garage charges a consolidated amount for the painting work, then the cost of paint and related materials is considered to be 25% of the total cost for the calculation of depreciation.
- For all rubber, plastic, and nylon parts, including batteries, air bags, tyres, and tubes the depreciation is at 50%.
- For fibreglass parts, depreciation of 30% is considered.
- For all parts made of glass, the depreciation is nil.
- The depreciation rate for all other parts, including wooden parts, are as mentioned in the table below:
|Age of the car||Percentage depreciation|
|Not more than 6 months||nil|
|Between 6 months and 1 year||5%|
|Between 1 year and 2 years||10%|
|Between 2 years and 3 years||15%|
|Between 3 years and 4 years||25%|
|Between 4 years and 5 years||35%|
|Between 5 years and 10 years||40%|
|More than 10 years||50%|
Let us consider an example in which a car part made of fibreglass was replaced. The total cost of the repair work was Rs.10,000. As per the depreciation rules, the insurance company would pay you only 70% of this amount, i.e., Rs.7,000. This implies that you will have to pay Rs.3,000 for the repair work.
Consider that there was a paint job done on the car that costs Rs.15,000. If the cost of painting materials was Rs.4,000, the insurance company will pay only 50% of the cost of these materials, i.e., Rs.2,000. This indicates that you will have to pay the remaining amount of Rs.2,000 for the cost of painting materials.
Buy National Car Insurance Online
It is possible to buy a National Insurance motor insurance policy from the insurer’s website. This way, you can avail attractive premium discounts, in addition to the No Claim Bonus (NCB) that you receive for observing claim-free years.
- In order to buy a National car insurance policy, visit the official website of National Insurance Company Limited and click on the link that takes you to the motor insurance policy page. Click on ‘Buy Policy’ to initiate the process.
- You will be taken to the National car insurance premium calculator tool that provides you an approximate value of the premium you will be required to pay for the insurance. For this, you are required to fill out an online form accurately.
The form includes the following details:
- Name of the individual who holds the Registration Certificate (RC) of the vehicle.
- Whether you are buying a new policy or renewing an existing one.
- Your state and district of residence. The pincode in your address and the nearest insurer’s office also needs to be selected from a drop-down list.
Your vehicle details such as:
- State of registration of the vehicle
- Vehicle class, type, body type, variant, and model
- Name of the manufacturer and year of manufacture of the vehicle
- The engine capacity of the car and its registered carrying capacity
- The location of registration of the car and the date of registration
- Nominee details, such as name, age, and relationship to the policyholder
- In case the nominee is a minor, the name of the appointee and his/her relationship with the insured is also required.
Details about the value of the vehicle is required to be filled in. This includes:
- The valuation basis and the IDV of the vehicle
- Limit for third-party property damage
- You should also specify whether you are seeking insurance coverage for the accessories. In case you need additional insurance cover, you can choose the appropriate riders from a list.
- You will receive a premium quote from the insurer based on the information provided. If you agree to the premium amount, you can confirm the policy details and proceed to make the payment.
You should note that providing incorrect information in the proposal form may jeopardise the validity of the coverage. Currently, National Insurance Company offers motor insurance policy to private vehicles that have Insured Declared Value less than Rs.25 lakh.
How to Purchase National Car Insurance Policy Offline
In case you are unable to access the insurance company’s website to buy motor insurance, you can approach the nearest office of the insurer either directly or through an authorised agent.
- Here, you should get the pre-printed insurance proposal form and fill it accurately.
- Then submit the form to the office. You can do this directly or through an authorised agent of the insurer. You should note that you can get in touch with an authorised agent by contacting the insurer’s office through telephone or via email.
- If the insurer deems it necessary to conduct a survey, a surveyor will be appointed by the office for the same. The surveyor will estimate the amount of risk involved in insuring the vehicle and other such matters.
- The premium estimates will then be provided to the proposer.
- If the customer agrees to the premium quote, he/she can proceed with the payment. After this, the policy will be issued to the proposer either through registered post or directly (on special request).
National Car Insurance Policy Renewal
You can renew your National car insurance policy online at the official website of the insurance company. In order to renew your motor insurance, you should click on the menu option that pertains to policy renewal.
- You will be required to provide your policy number and email ID.
- You will receive a form that shows your current policy details and a premium quote for policy renewal. If you agree to the quote, you can make the payment for policy renewal.
This way, you can renew National car insurance policies that are due for renewal in the next 30 days. The website also enables you to renew car insurance from another insurance company in an effortless manner. In case you have any queries on the process, you can call the National car insurance customer care number for clarifications.
National Car Insurance Claim Process
In order to raise a claim with National Insurance, you can follow these steps:
After the loss has occurred, you should contact the police and file an FIR. It is mandatory to produce an FIR at the time of a claim for the following events:
- Damage to third-party
It is not necessary to file a claim when the loss has occurred due to natural calamities, such as earthquakes, floods, inundation, etc.
- You should also intimate the insurance company of the loss immediately. This is crucial in ensuring that your claim is honoured.
- Collect the claim form from the insurer and fill it up accurately.
You should then submit the claim form at the office of the insurance company, either directly or through an authorised agent. Along with the claim form, ensure that you submit all the relevant documents, including:
- Doctors’ prescriptions
- Police reports
- Pathological test reports
- Medical shop bills
- Admission and discharge certificates
- Receipts from doctors, surgeon, etc.
- Any other document requested by the insurer
- National Insurance may employ a surveyor to assess the damages incurred. They may also refer the case to a panel of doctors, if needed.
- The claim settlement is done by the policy issuing office. The policyholder receives the payment as a lump sum amount.
- In some rare cases, a provisional payment is offered by the insurance company to the policyholder. This happens when the final processing of the claim is still pending.
- The insurance company recommends that you approach its branch office for filing claims and communicate directly, as opposed to using emails or calling the National car insurance customer care number for the same. This will ensure speedy claim settlement.
National Insurance Customer Care
The customer care number of National Insurance Company Limited is 1800 200 7710. You can dial this number to get clarifications for your queries or for resolution of issues. You can also fill up an online form at the website of the insurer and get a customer service representative to call you back. Alternatively, you can initiate a chat with the customer service department through the facility available on the website.
You can click on the ‘Our offices’ menu option and get a list of all the branch offices of the insurer. You can search for branches based on city, state, or office code. In order to raise grievances, you can click on the corresponding menu option at the website and get all information regarding the same. You can also lodge a feedback by selecting the ‘Feedback’ menu option.
FAQs for National Car Insurance
- What is the extent of damages covered for a self driven vehicle under the Comprehensive coverage car insurance plan?
Under a National insurance comprehensive coverage plan, damages to own car caused by the the following are covered.
- Damage caused due to Fire(external means), Explosion, Lightning & Self Ignition
- Natural perils such as Floods, Earthquakes, Storms, Landslides and Rockslides
- Theft, Housebreaking & Burglary
- Riots, Strikes, Terrorism & other malicious acts
- Transit by Road, Rail , Air, Inland Waterway, Lift
- I read some literature about “No Claim Bonus”. What is this and how does it work?
No Claim Bonus is a monetary benefit passed to the insured for not making any claims during the previous policy period. It is a mandatory rebate given by the insurer to the insured during the time of policy renewal for “zero”claims during the antecedent policy term.
The NCB starts at a minimum of 20% and can go up to 50% of the policy premium renewal value.
It is paramount that you keep the insurer informed on changes with regard to communication address and phone numbers, modification in name, alterations made to the car etc. It is done by means of an Endorsement by the insurer.
You can either call or visit one of the local offices of National insurance to gather more information regarding any modifications to the existing policy. Some of these changes may require support of relevant documents.
The Indian Motor Vehicles Act mandates that all vehicles in the country are insured with at least a minimum insurance cover, i.e., the third-party liability insurance. Since it is the law, you are expected to abide by it. You can approach National Insurance Company Limited to buy a liability-only policy for your vehicle that provides adequate coverage for your needs at a nominal cost.
The National car insurance premium calculator tool is a very useful proposition as it helps you in determining the amount you will have to set aside towards the premium on an annual basis. This is key in coming up with a realistic budget for your annual expenses.
If you are using the National car insurance premium calculator tool on neutral financial websites such as BankBazaar, you can also compare motor insurance plans between providers. This is useful in identifying the most cost-effective plan for your needs.
Yes, National Insurance Company offers car insurance for all private cars that have IDV less than Rs.25 lakh. You can get further details on this by contacting the insurer.
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