New India Car Insurance

Overview

New India Assurance Co. Ltd. is a government undertaking with domestic and international operations. This Indian general insurance provider, headquartered at Mumbai, has been a front-runner in the non-life assurance sphere for over 4 decades now. It is known for it's robust financials allowing it to deliver on commitments to it's growing customer-base. Its unmatched profitability is testament to it's superior managerial abilities.

This insurer’s presence is felt all over India reaching a large and growing number of customers through it's many distributors including offices, agents, micro offices, bancassurance partners, dealers, manufacturers, NGOs and tie-ups with corporates. Their products provide assurance solutions to clients in the business, retail, small and medium enterprise and social sectors.

Their international presence is felt in over 22 countries through a network of associates, subsidiaries, branches and agencies.

Motor Insurance in India

Third-party car insurance is a necessity mandated by law for every motorist with insurable interest in a car driven on Indian roads. While one can opt for a policy to cover only this legal aspect, it is always better to possess a comprehensive motor policy to cover all eventualities. It is more affordable than taking out two separate policies i.e. one to cover damages caused to others and one to cover own-damages.

New India Assurance - Package Motor Policy

Part of it's personal insurance offerings, this motor policy was drawn up to bestow upon the holder the right to be recompensed in the event of any mishap involving the insured vehicle.

Scope

Private cars are covered under this contract for the following:

• Own-damage:
• Loss to the insured car (including accessories) caused by fire, lightning, larceny, public disruptions like riots, intentional damages caused by an external source/party, terrorism, environmental disasters (earthquakes, floods, landslides, cyclones, storms etc.), mishaps during transport by road, rail, waterways etc., accidents.
• Expenses incurred on towing the car to the nearest service centre as per chosen rates or within a pre-determined limit of Rs.1,500.
• Third-Party Liability:
• All losses suffered by another party on account of the insured.
• Amounts as awarded by the Court in relation to:
1. Loss of life, property impairment, physical injury
2. While bodily damages incur unlimited liability, property impairment is due to be compensated up to Rs.7,50,000.

Out of scope

The following are the exclusions or circumstances which do not entitle the policyholder to make claims:

• Natural devaluation due to progression in age of the automobile
• Breakdowns
• Driving while under the influence of intoxicants like liquor and drugs
• Driving without authority or without a valid driver’s license
• Contractual obligations
• War and related hazards
• Usage beyond private purposes and limits
• Usage beyond specified borders
• Tyre-damages

New India Car Insurance Add-on Covers

New India motor insurance policyholders can take additional covers under their comprehensive plans by paying extra premium. As add-ons, customers can get cover for the following -

• Damages or losses occurring on accessories available in the car, namely, fans, air-conditioners, stereos, etc.
• Policyholders can get personal accident cover for paid drivers and passengers.
• Cover for legal liability expenses to employees.
• For commercial vehicles, coverage for legal liability expenses to non-fare paying passengers can also be availed.

Insured’s Declared Value (IDV)

This is the current market value of the car which is also the sum insured. Own-damage premiums are ascertained based on this. (Third-party premiums are as per tariffs set out under the Motor Vehicles Act, 1988).

The IDV is derived from the producer’s selling price of a car of the same specifications. From this value, the relevant amount of depreciation is deducted based on the age of the vehicle. These amounts are usually considered for Total Loss (TL) or Constructive Total Loss (CTL) of the automobile for a period up to 5 years. Beyond this period and for models that are no longer in production, the amount to be deducted as depreciation is based on an agreement between the insurer and the insured.

Premiums

Premiums are dependent on the sum assured.

In case of third-party covers, premiums are set as per the tariff given under the Motor Vehicles Act, 1988.

In case of own-damage covers, premiums are set as per the sum assured of the insured motor vehicle. There are discounts available on OD premiums.

Premiums also depend on:

• Age of car
• City where it is registered
• Engine capacity (in cc)

Discounts

OD premiums qualify for discounts in the following cases:

• No-Claim Bonus: This is offered upon renewal, after completion of a policy period wherein no claims were made. The bonus offered will range between 20% to 50% depending on the number of claim-free years preceding the renewal of the policy. Renewals should be done within 90 days of policy expiry.
• Installation of anti-theft devices approved by the ARAI.
• Membership with a recognised automobile association of India.
• Classic or Vintage cars that are recognised as such by the Vintage and Classic Cars Club of India.
• Laid-up vehicles
• Use of the automobile within the premises of the insured

New India Car Insurance Claims Process

New India Car Insurance customers have to follow the below given steps to make claims under an existing policy. Policyholders have to adhere to different procedures depending on the type of claim filed.

Claims for Accidental Damages to the insured vehicle -

• The policyholder has to inform the nearest New India Insurance branch office in case of accidental damages to his/her vehicle. The branch will then issue a claim form to the customer.
• This claim form has to be filled and submitted with copies of the driving license of the person driving the car when the accident occurred and the registration certificate along with a repair estimate.
• A Surveyor will inspect the damaged vehicle after which a report will be submitted by him to the insurer. If the vehicle damage is major, then the company might even arrange for a spot survey of the accident location.
• The policyholder will have to submit cash memos and bills to the company.
• Once the claim has been approved, the policyholder will have to submit salvage of the damaged parts to the insurer.

Claims for theft of the insured vehicle -

• The policyholder has to lodge a First Information Report (FIR) with the police as soon as the incident occurs.
• The office from where the policy was issued has to be updated by submitting a copy of the FIR.
• The Final Police Report also has to be submitted later.
• The claim will be approved once the surveyor’s investigation is completed. After this, the registration certificate has to be transferred in the insurer’s name and the keys for the vehicle have to be handed over. Duly notarized Indemnity on stamp paper and a letter of Subrogation has to be submitted by the policyholder.

Liability Claims

• If a policyholder plans to make a liability claim, then the insurer should be informed about any occurrence that will lead to a liability claim.
• Once the summons from the court has been received, the same should be sent to the insurance company.
• Policyholders have to submit the filled-in claim form with copies of the driving license, registration certificate and the FIR.

Compulsory Deductibles

The proposer has to bear a certain amount of the claim.

In addition to the compulsory deductible, the proposer has to also bear the salvage value (within reasonable limits) and depreciation.

It is evident that this policy provides a number of attractive benefits that can not only meet a proposer’s car insurance needs adequately, but can also do so in a flexible, easy and transparent manner.

FAQS for New India Car Insurance

1. What are the documents required to register a claim with New India Car Insurance?

   Documents to be submitted at the time of registering a claim are :

   • Document such as claim intimation received by the insurer
   • Copy of policy and receipt of payment of premium
   • Completed claim form
   • A copy of the driving license
   • Certificate of registration of vehicle
   • Estimate of repairs and a stamped receipt from repairer
   • Bills of repairs that have already been done at approved garages.
   • Road tax verification
   • Police FIR
   • Fitness Certificate, etc.

2. What does the Liability Only policy cover?

   This policy covers the vehicle owner's liability to pay compensation for fatal injury or harm to a third party individual as well as for damage of third party property. This cover does not apply to damage or injury to the car and it’s passengers.

3. What is the coverage given by Motor Package policy from New India Car Insurance?

   This policy covers all the risks including loss or damage caused to the vehicle due to: accident, theft, fire, strikes, explosion, natural disasters such as earthquakes, floods, cyclones, etc., malicious acts including vandalism, terrorism, damage during of transit and also includes towing charges.

4. What is the coverage provided under the Solatium Fund Scheme?

   This scheme was introduced by the Central Govt. in order to provide compensation for "Hit and Run" victims. The amount of compensation provided to the victim or his family in case of such motor accidents is Rs. 25,000/- in the event of death and Rs.12,500/- for grievous hurt.

5. What is not covered under New India Car Insurance policy?

   The scenarios that are not covered under this policy are - damages caused due to intoxicated driving, driver not having a valid driving license, damage only to tyres, breakdown of the vehicle due to mechanical reasons, etc.