National Car Insurance
National Car Insurance is the motor segment of National Insurance co. Ltd. that provides insurance solutions for private cars in India. It is a part of the National Insurance co. Ltd., which is the oldest general insurance company in India. The company has been serving car owners for years and is known for its claim settlement.
Car insurance plans by National Motor Insurance protects car owners from legal liabilities as well as any own car damages. Moreover, it also provides them with personal accident cover to safeguard them from any injuries suffered while driving the car. However, only registered car owners will be issued car insurance policy by National vehicle insurance.
Features and Benefits of National Car Insurance
- High Incurred Claim Ratio – National Motor Insurance enjoys one of the highest Incurred Claim Ratio (ICR) of 127.50% for the year 2018-19 amongst all car insurance providers in India.
- Towing charges – National vehicle insurance covers towing charges as part of their package car policy. Any expenses incurred on towing the damaged car to the garage will be paid by the insurer.
- Add-on covers – Several additional covers can be used to increase the coverage of your car policy by paying the extra premium amount. They include nil depreciation, NCB protect, invoice protect, etc.
Types of Plans Provided by National Motor Insurance
National Motor Insurance offers two types of private car insurance plans. They are:
- Annual Liability Only Policy
- Annual Package Policy
Annual Liability Only Policy
The annual liability only policy covers a private car against any legal liabilities arising out of third party claims. It provides coverage for the car owner’s liabilities arising due to causing bodily injuries or death of a third party person. It also covers liabilities of the car owner for causing property damage to a third party.
While liability coverage for causing property damage is limited to Rs. 7.5 lakh, there is no set coverage limit for liabilities arising out of third party person’s death or bodily injuries. The policy is available for one year.
Possessing a third party liability cover is mandatory in India for all cars plying on public roads under the Motor Vehicle Act, 1988.
Annual Package Policy
The annual package policy provides comprehensive protection to a private car by covering third party liabilities as well as any loss or damages sustained by the insured car. It covers own damage of the car and its accessories arising due to collisions, disasters, theft, manmade unrest or fire. It also covers any accidental injuries caused to the owner-driver of the car.
Besides, this policy covers expenses incurred while towing the car from the accident location to the garage.
Generally, National car insurance offers annual car insurance policies that need to be renewed every year. However, cars purchased after 1st September 2018 can get a liability only or package policy from National vehicle insurance for a policy tenure of three years. But before you purchase the best car insurance for new cars or renew existing policies, compare them with plans from different insurers online at an insurance broker website.
Inclusions of National Car Insurance Policy
Private car policy by National Motor Insurance provides coverage for the following contingencies:
- Own Damage Cover – It provides coverage to the insured car against any loss or damages caused due to the fire, natural disasters, burglary, accidents, manmade calamities, lightning, malicious acts, self-ignition and while in transit. Natural disasters, such as earthquake, flood, landslide, cyclone, storm, hailstorm, etc are covered. Manmade calamities include riots, terrorist acts, strikes, etc.
- Third Party Legal Liabilities – Any legal liabilities of the policyholder arising out of causing property damage and bodily injuries to a third party person by the insured car will be covered. It also provides coverage in case the insured causes death of a third party person.
- Towing Charges – In case of an accident, any charges incurred by the policyholder for towing the damaged car from the accident spot to the garage will be covered.
Add-on Covers of National Car Insurance
National car insurance also offers several add-on covers that can be used to enhance the coverage of your car insurance policy. However, these covers need to be purchased by paying a higher premium amount. Following is the list of add-on covers offered by car insurance by National Motor Insurance:
- Nil Depreciation
- Invoice Protect
- NCB Protect
- Invoice Protect
- Nil Depreciation Plus
Exclusions of National Car Insurance
The following situations or emergencies are not covered under private car policy by National Motor Insurance:
- Wear and Tear – It does not cover any loss or damages resulting out of normal wear and tear of the car.
- Invalid Driving Licence – In case you suffer a loss due to driving the car with an invalid or expired driving license, then National car insurance will not come to your rescue and pay for the losses incurred.
- Mechanical & Electrical Breakdowns – Any loss or damages incurred due to mechanical and electrical breakdown of the car will not be covered.
- Driving under the influence of alcohol – Going by the Indian laws, driving under the influence of alcohol is not allowed. Hence, any loss or damages caused to the car or injuries suffered by the owner-driver will be excluded if he is found driving under the influence of alcohol.
- Consequential Loss – National vehicle insurance does not cover any loss or damages caused to the car as an indirect consequence of a covered contingency. For example, any damages caused to the car tyres while being towed from the accident spot to the garage will be not covered.
- War or Allied Perils – In case a war or warlike situation results in causing major loss or damages to the insured car then, unfortunately, the insurer will not be able to compensate for it.
- Commercial Use – If the insured car is being used for non-personal or commercial use and ends up suffering a loss or damage, then the insurance company will not pay for it.
- Contractual Liabilities – National car insurance will not pay for any liabilities arising out of any contractual work involving the insured car.
How to Renew National Car Insurance?
It is important to renew your existing car insurance policy before it gets expired. In fact, renewing your National car insurance online is a quick and easy process. If you want to renew your national car insurance online, follow the steps given below:
- Go to the renewal section of the page
- Enter the details of your existing national car insurance online, such as policy number, etc.
- You may be required to enter your personal details like contact number
- Add or remove any add-on cover from your policy if you want
- The premium amount to be paid will be displayed
- Pay the premium for National car insurance online through internet banking or debit/ credit cards
- Your car insurance policy will be renewed
National Car Insurance - FAQs
Ans: National car insurance will be issued with one-year validity and will have to be renewed every year. However, cars purchased post 1st September 2018 can be covered for three years.
Ans: Yes. National car insurance will provide no claim discount on renewal for every claim-free year. The discount can be accumulated to a maximum of 50% if no claims are made for consecutive years.
Ans: Yes. You can renew your national car insurance online by going to the renewal section and entering the required details. Once you pay the premium amount quoted, your car insurance policy will be renewed.
Ans: Finding a car insurance company good is subjective and depends on a person’s personal choice. You can compare national car insurance with other motor insurance companies in India based on coverage, premium, incurred claim ratio, etc. You can easily compare different car insurance companies at Policybazaar.
Ans: Yes. National car insurance policies come with a compulsory deductible of Rs 1000 for cars up to 1500 CC and Rs 2000 for cars above 1500 CC.
Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.Read More