National Car Insurance

National Car Insurance is the motor segment of National Insurance that provides insurance solutions for private cars in India. It is a part of the National Insurance Company, 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 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.

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 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 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 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 car insurance national 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 car insurance national insurance online through internet banking or debit/ credit cards
  • Your car insurance policy will be renewed

National Car Insurance - FAQs

Written By: PolicyBazaar - Updated: 03 July 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 9 Reviews)
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National Car Insurance Reviews & Ratings
4.9 / 5 (Based on 9 Reviews)
(Showing Newest 9 reviews)
Hyderabad, October 07, 2016
Important Policy, Can't Be Ignored
Car insurance policy is very much needed as any other insurance policy. I bought mine from national general insurance. Service is perfect which is given by the executives of the company. The online renewal facility is fantastic and easy to operate online portal.
Barsoor, October 04, 2016
National Car Insurance
Good to have car insurance in low price from national general insurance company ltd. The premium is less and returns are high. Coverage is maximum even the tow car service is free of cost at any area or location. Each and every part of the car is insured under the policy except the tires. Claims are easy to make because the service is fast given by the executives of the company.
Alandur, August 30, 2016
"Dream Come True"
I have the best car insurance policy which i purchased from national general insurance. Policy gave me the best coverage and claims are high which can be sanctioned easily. Service is fabulous given by executives and staff members of the company.
Khandwa, August 17, 2016
Good Plan
I have car insurance policy which is very good and has low premiums. The policy coverage is high and it covers maximum parts except tires. Service is fantastic and tow facility is provided at any location for free of cost. Renewals is easy to make through online portal. Updates of the insurance policy is mailed regularly to me.
Zahirabad, August 05, 2016
Quality Investment
The national general insurance is one of the best insurance company. I buy car insurance plan from them in less investment and the refunds and benefits are much more than that. The updates and renewals are easy to make through websites and online portals.
Udyapur, August 05, 2016
My car insurance plan is from national insurance company. The policy covers maximum expenditure and the claims are easy to sanctioned. Car tires are not included in the insurance policy but rather than this all other parts are secure.
Mathura, August 03, 2016
Nice Policy
Car insurance policy of mine is fantastic and it provides the best benefits and customer services. Policy coverage is high ~90% and the claims are even better. Claiming become easy due to fast service given by the executives and staff members. Except tires my vehicle is insured. Fully Satisfied.
Lucknow, August 03, 2016
Car insurance
National general insurance company is very good one which facilitate the best services and the investments is also less. Policy cover maximum expenditures and the car is fully insured in the policy. Updates and renewals are done on website of the company which reduces paperwork and documentations.
Ahmedabad, May 13, 2016
I buy national car insurance for my new car. The policy is great and the policy premiums is very low. The policy coverage is high and the claims are even better. Good policy plan which facilitate tow car for free. The behaviour of the executives is very nice. I like the policy.