National Insurance Company Car Insurance

National Insurance Company Limited or NIC is a completely central government-owned general insurance company in India. The company is headquartered at Kolkata. It was established in 1906 and was subsequently nationalized in 1972. The company employs over 15000 skilled employees in its 1340 offices and 373 business centers across the country. The company is also operational in Nepal. NIC has been recognized as the ‘Best in Service’ in the Motor and Health insurance businesses that comprise more than 63% of the Indian non-life insurance market. The company has widespread tie-ups with leading automobile makers for its motor insurance business, including companies like Maruti, Tata Motors, Nissan, Honda, etc.

NIC's Motor Insurance policy is highly pro-customer; it brings in a range of extremely attractive features that provide 100% protection to the vehicles of its customers. It provides regular features, such as protection against theft, unintentional damage caused to an insured car, accidents causing injury, death and loss of property of a third party. They have an excellent customer support team and offers the simplicity of purchasing the policies online. NIC is one of the premier insurance firms in India and a trusted choice for most vehicle owners in India.

Key Highlights & Features

• The motor insurance policy offered by NIC covers vehicles that are used for domestic, social and professional purposes. This excludes the use of the insured vehicle in situations where the car is used to carry goods by anyone other than the registered driver or when the car is being used on hire or for speed tests, reliability trials, racing, pace setting and any scenario involving motor trade.

• NIC provides additional cover for the loss of vehicle accessories, legal liabilities to a paid driver, personal accidents involving the owner or other occupants of the car, legal liabilities for third-party property damage to the tune of Rs.7.5 lakhs.

• The policy offers a Provision for No Claims Bonus, i.e., if no claims are made by the policyholder throughout the policy tenure, then the renewal premium available at a discounted rate.

• Discounts are applicable when opting for higher voluntary excess.

• The purchase process is very simple; policies can be easily purchased online using credit/debit cards or net banking in just 5 minutes.

• A special discount is available if approved anti-theft equipment is installed in the vehicle.

• A special concession is available for customized vehicles that are made for blind, handicapped or mentally challenged people.

Coverage Options

Getting your car insured is compulsory in India as mandated by various motor vehicle laws in the country. National car insurance extends two types of coverage options to its customers.

Liability-only cover: This is a type of coverage that provides insurance cover only against third-party legal liabilities arising out of accidents involving the insured car. It offers coverage of up to Rs.7.5 lakhs in situations concerning injury to a third-party, the death of a third party as well as third-party property damage in case of an accident.

Package Cover: This scheme is also known as comprehensive cover. It is an all-inclusive car insurance policy which not only covers all the liabilities mentioned above but also includes damages to own vehicle, self and occupants of the car.

Incidents Covered under the Package Policy

Third-Party Liability: This is a protection against possible financial liabilities (up to an amount of Rs.7.5 lakh) in which the insured vehicle is responsible for or has been involved in an accident, which resulted in the damage or loss of any third-party property and/or caused injury/death of a third-party individual. Instead of benefitting the insured directly, this cover saves him/her from the legal, medical and repair costs that the affected party may ask for a settlement.

Own Damage Cover: This cover includes damages caused by natural reasons like fire, earthquake, hurricane, lightning, landslide, rockslide, cyclone and other similar uncontrollable acts of nature are covered. It also extends to man-made damages to the vehicle or complete loss of the vehicle due to any intentional or unintentional acts of man are covered. These include acts with malicious intent, theft, terrorism, strikes, accidents caused by external means, damage caused to the vehicle when being transported, etc.

Personal Accident Cover: If the owner or the driver of the vehicle meets with an unfortunate accident while driving or using the vehicle for its intended purpose, then he/she is entitled to receiving a Personal Accident Cover. Moreover, the passengers of the vehicle, who may be victims of the accident, are also protected by additional personal accident coverage.

Exclusions

The following aren’t covered by the National Car Insurance policies:

• General wear and tear to the car due to natural aging

• Damages caused to the vehicle when the driver was either not carrying a driver’s license or drunk driving or driving after consuming mood/mind stimulating substances.

• Electrical or mechanical breakdowns.

• Damages to the vehicle during a war, mutiny or nuclear attacks.

• Damages to the tires and tubes of the vehicle

• Depreciation of the vehicle

• Damage or loss of the vehicle while it is outside India.

• The costs incurred for vehicle parts and allied labor, the failure of which led to an accident

Why Should You Purchase Insurance from NIC?

NIC is one of India’s oldest insurers. Therefore, it's a reliable company in which the questions operational competence takes care of itself. The vehicle insurance from the NIC is tailor-made for people who seek a simple, robust, all-inclusive and scalable insurance policy to protect their vehicles. Customers can breathe a sigh of relief as they are protected against an array of natural and man-made calamities with NIC's Motor Insurance.

The company was the first Indian insurer to get into strategic partnerships with various automobile industry giants, such as Maruti and Hero MotoCorp. These alliances introduced landmark reforms in NIC's quality of service in the automobile industry. Moreover, NIC was the pioneer in establishing relationships with the largest banks in India. The company has been accredited with excellent ratings and has also received several awards for its consistent performance, innovative reforms and strong market presence.

Depreciation

Depreciation refers to the loss in the value of a vehicle over a period of time. A car's value begins to depreciate since its purchase. All insurance companies calculate a vehicle's Insured Declared Value (IDV) based on its depreciation. IDV is calculated by deducting the depreciation value from the manufacturer’s listed price of the vehicle.

Each part of the vehicle depreciates. The cost of parts is quite high, especially for expensive and luxurious cars. In order to protect a vehicle from depreciation, customers can opt for zero depreciation add-on cover offered by many insurers. It's an add-on cover that can be purchased separately from the insurer by paying an additional premium. If such an extra cover is added to the comprehensive motor insurance policy, the total coverage is amplified manifold.  

Vehicle owners must be aware of the depreciation element of their cars as it would help them understand the impact it can have on the car insurance. The rate of depreciation on car parts is:

• For paint jobs done on a car, a depreciation rate of 50% is applicable to the cost of painting materials.

• For all rubber, plastic and nylon parts, including batteries, airbags, tires and tubes, the depreciation is at 50%.

• For fiberglass parts, the depreciation is at 30%.

• For the parts that are made of glass, the depreciation is nil.

• The rest of the parts, including wooden ones, follow these depreciation rates:

• If the vehicle’s age is less than 6 months, then the rate of depreciation is nil.

• If the vehicle’s age exceeds 6 months, but within 1 year, then the rate of depreciation is 5%.

• If the vehicle’s age is over 1 year, but with 2 years, then the rate of depreciation is 10%.

• If the vehicle’s age is in between 2 to 3 years, then the rate of depreciation is 15%.

• If the vehicle’s age is in between 3 to 4 years, then the rate of depreciation is 25%.

• If the vehicle’s age is in between 4 to 5 years, then the rate of depreciation is 35%.

• If the vehicle’s age is in between 5 to 10 years,  then the rate of depreciation is 40%.

• If the vehicle’s age is more than 10 years, then the rate of depreciation is 50%.

For instance, let us consider that a car part made of fiberglass was replaced. The repair work was of Rs.10,000. According to the depreciation rules, the insurance company should pay only 70% of the amount, i.e., Rs.7,000. The vehicle owner will have to pay only Rs.3000 for the repair work. If a paint job was done on the car for Rs.15,000 in which the painting materials cost Rs.4,000, the insurer would pay only Rs.2000 (50% of the cost of materials) and the vehicle owner would have to pay the remaining amount.

Buy National Car Insurance Online

The easiest way to buy a National Insurance motor insurance policy is from the insurer’s website. This process is not only very convenient but also offers attractive discounts. Visit the official website of NIC at https://nationalinsuranceindia.nic.co.in and go to the 'motor insurance' tab. Click on the ‘Buy Policy’ button to initiate the process.

• First, you will be redirected to the National car insurance premium calculator. Here, after filling up a form with some basic information, you can get the approximate value of the premium you have to pay for the insurance. The form includes these details:

• Name of the person as per the Registration Certificate (RC) of the vehicle

• Whether it's a new policy or renewal

• The vehicle owner's state and district of residence along with the pin code.

• The class, type, variant and model of the vehicle

• State of registration of the vehicle with the date of registration

• Name of the manufacturer with the year of manufacture

• The engine capacity of the car

• The registered carrying capacity of the car

• Nominee details - name, age and relationship of the nominee with the policyholder

• The valuation basis of the vehicle

• The IDV of the vehicle

• The limit for third-party property damage

• Apart from these details, you might also be required to state whether you are seeking insurance coverage for the vehicle accessories. If you need additional insurance cover a list of add-on riders will be available to select from.

• Based on these details, the insurer will provide a premium quote. If you agree to the amount, then confirm the policy details and make the payment.

• You must also note that if you provide incorrect information in the proposal form, you may jeopardize the validity of the coverage.

Buy National Car Insurance Offline

If you are unable to purchase the motor insurance online, you can visit the nearest office of the insurer either through an authorized agent or directly.

• Get the insurance proposal form and fill it up accurately.

• Submit the form to the office.

• The insurer might conduct a survey f the vehicle and a surveyor will be appointed by the office.

• The surveyor will inspect the vehicle and estimate the amount of risk involved and declare a value.

• The insurer will provide you with premium estimates.

• If you agree to the premium quote, you can proceed with the payment.

• Post payment, the policy will be issued to you either through registered post or directly.

Policy Renewal

National car insurance policies can be renewed online through the official website if the policies are due for renewal in the next 30 days. You can also renew your car insurance from another insurer by transferring it to NIC in an effortless manner.

• Visit the official website of NIC at https://nationalinsuranceindia.nic.co.in

• Go to the 'motor insurance' tab

• Click on the ‘Renew’ button to initiate the process.

• Enter your policy number and the captcha.

• Your current policy details will be displayed, along with a premium quote for policy renewal.

• Once you agree to the quote, make the payment and get the policy renewed.

Claim Process

These steps can help in raising a claim with National Insurance:

• Intimate the insurer of the loss immediately to ensure that your claim is honored. Time is critical at this stage.

• Obtain the claim form from the insurer.

• Fill it up accurately and submit it either directly or through an authorized agent.

• Submit all the relevant documents like:

  • The claim form - duly filled and signed

  • Original Estimate

  • Vehicle’s RC book

  • FIR on a case-to-case basis

  • A copy of the Driving License

  • First two pages of the Policy document

  • Original Repair Invoice (Payment Receipt is also required for garages outside the approved network)

  • Original medical bill and hospitalization proof.

• National Insurance Company will employ a surveyor to estimate the damages incurred.

• The policy issuing office handles the claim settlement process.

• The payment is disbursed to the policyholder as a lump sum amount.

• In rare cases, when the final processing of the claim is pending, a provisional payment may be offered by the insurer to the policyholder.

Customer Care

National insurance company recommends that customers approach one of its branch offices for filing claims. They prefer direct communication, as opposed to using emails or phone calls. This will ensure speedy claim settlement. However, the customer care department can be reached over the phone at 1800 200 7710.

FAQs

What are the damages that National Insurance Company covers for a vehicle under its Comprehensive car insurance coverage?

The National insurance comprehensive coverage plan extends coverage to damages to a car caused by the following causes:

• Damage caused by fire, explosion, lightning and self-ignition

• Natural perils such as floods, storms, earthquakes, landslides and rockslides

• Theft, housebreaking and burglary

• Riots, strike and other malicious acts

• In-transit damages

What is “No Claim Bonus” and how does it work?

No Claim Bonus bonus is applicable when policyholders renew their policy without filing for any claim in the policy terms. The bonus becomes a discount on the premium charged towards own-damage protection. The percentage of bonus is determined by the number of claim-free years achieved by the policyholder.

How to make changes to an existing NIC car insurance policy?

Any changes to an existing NIC car insurance policy can be done through an endorsement by the insurer. Either call or visit the local office of NIC to gather information. Support the relevant documents to make the necessary changes to your existing NIC policy.

Is it necessary to get an insurance cover for a car that is rarely used?

According to the Indian Motor Vehicles Act, it is mandatory for all vehicles in the country to have insurance with at least a minimum cover, that is, the third-party liability insurance.