Car Insurance – Things You Need To Know

New India Car Insurance is a globally reputed company with presence in 27 countries. In India, this is the subsidiary doing business as New India Assurance Company Limited. This is wholly owned by Government of India and present in Non-Life Insurance category. The wide range of insurance products, efficient network for complaint management and modern technology clubbed with the strong international presence made New India Assurance Company a successful organization in its domain.

In India, car insurance is mandatory for all vehicles running on roads as specified by the Motor Vehicles Act of 1988, to cover the eventualities. A liability insurance is the minimum mandatory requirement. New India Insurance offers car insurance policies with variable features for private cars to cater the need of all sectors of car owners in India. If the car is registered in India in any person’s name with any regional Transport Authority, then the person is eligible for car insurance policy from New India car Insurance.

They offer Insurance plans like:

Liability Insurance Policy and (2) Package Policy

(1) Liability Insurance Policy

  • This policy covers the liabilities to the third party in case of an accident. The liability coverage goes for accidental death, physical injury and/or the damage to vehicle and property
  • This plan also includes the personal accident coverage for the owner-driver as well
  • Unlimited coverage is provided  for death or injury of third party while up to Rs.7.5 Lakh are covered for property damage

(2) Package Policy

This is the comprehensive policy by New India Car Insurance and covers a wide range of scenario. In addition to the third party coverage, this package plan also covers the insured car and its owner from the following damages caused by:

  • Natural calamities like floods, inundation, typhoon, cyclone, hurricane, storm and hailstorms
  • Landslides and rockslides
  • Earthquake (both shock and Fire)
  • Fire, self-ignition, lighting or explosion
  • Terrorist and Malicious activities
  • Strikes and Riots
  • House breaking, burglary and theft of car

This policy also includes towing charges from the accident spot to the repairing workshop. For cars a maximum of Rs.1500 is allowed. Higher towing charges could be included in the plan with additional premium.

Add-on Coverage – Apart from the regular coverage, some additional coverage could be included in the plan with some extra premium. These coverage are Personal accident coveragefor:

  • The paid driver
  • Other passengers
  • The fitted accessories in the car like stereo, air conditioner, fan etc.

Exclusions — Certain exclusions like the natural wear and tear, damage while driving under influence of alcohol, driving without license, unauthorised use of the vehicle, using the vehicle in the territory not covered by New India Car Insurance, loss during war, tyre damage etc. are not covered under this plan.

Factors Determining the Premium Amountfor New India Insurance are:

  • InsuredDeclared Value (IDV) of the vehicle – It is the amount insured by theinsurance company. IDV is derived from the actual price of the new vehicle listed as selling price by the manufacturer, the make and model of the car. Depreciation on it is factored in while calculating IDV. The premium is based on IDV for the first 5 years of the new vehicle. Subsequently IDV is determined based on the consideration between the insured and the company
  • Size of the car
  • The geographic location of operating the car
  • The additional coverage in the policy

Claim Process

Claims are categorised in three scenarios and the procedure for each is described below.

(1) Accidental Damage of the car

  • Notify nearest office immediately and get Claim Form
  • Submit claim form duly filled. Copy of Vehicle registration certificate and DL also needs to be submitted along with this
  • Provide Estimate for repairing
  • Insurance company appoints surveyors who surveys the vehicle and submits an investigation report. For major damage, spot survey at accident site might be needed
  • Insured party has to submit the signed bills of repair
  • Company might retain the damaged parts as proof

(2) Liability Claim

  • Inform the insurer about the possibility of a liability y claim
  • If Court summons received, immediately send it to the insurer
  • Submit duly filled claim form along with copies of DL, FIR and Registration Certificate

(3) Theft of Car

  • Lodge FIR immediately with police
  • Inform insurer with a FIR copy and submit the Final Police Report to insurer without delay once it is received
  • Surveyor will survey and submit report. Once claim is approved, transfer the registration certificate in the insurer’s name, submit letter of Subrogation and duly notarised indemnity letter that has to be made on stamp paper and submit the car keys to the insurance company

The New India Car Insurance offers a good range of coverage and there is option for add-on benefits to customize the requirements of the insured. These along with the clear cut direction of claim process makes it the right choice for car insurance.

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