New India Assurance Company is the largest public sector general insurance company in India. Founded in 1919 by Sir Dorabji Tata, the company has a presence all over the country as well as internationally in 28 other countries. In India, New India Assurance Company has more than 2450 offices, more than 1300 micro offices along with 17,702 employees and 68,389 tied agents. The company offers almost 230 insurance products. Being an expert in the non-life insurance business, New India Assurance Company has received many awards and accolades. Following are some of them:
- The company has received ‘India Insurance Summit – Insurance Company of the Year’’ consistently for a few years
- The company has received the ‘Best General Insurance Company’ title by ABP News
- The company has received ‘Claims Service Leader – Large Companies Category’ under Fintelekt Indian Insurance Awards
With its product diversity and wide-spread presence, the company has been consistently recognised for its contribution to the growth of the Indian insurance sector. New India Assurance Company offers a wide range of non-life insurance products that include car insurance, bike insurance, health insurance, travel insurance, rural insurance, commercial insurance and many more.
New India Assurance Car Insurance – an Overview
Car is one of the valuable assets that everyone dreams to own. When a person buys this precious asset, it’s a responsibility to secure it from all possible dangers. Insurance is the only way to protect it from all kinds of risk. Indian Motor Vehicle Act also makes it mandatory to have motor vehicle insurance before plying the car on Indian roads. Driving a car on the road involves a variety of risks such as the risk of third party vehicle/property damage, bodily injury/death, own car damage caused by accidents, losses by man-made or natural calamities etc. Car insurance covers them all and provides financial protection against all such risks. Having comprehensive car insurance has become imperative for every car owner.
New India Assurance Company offers comprehensive financial protection to the car against various risks. The company also offers flexibility to choose the cover based on the requirement.
Plans Offered by New India Assurance Car Insurance
There are various types of car insurance coverage are made available with the New India Assurance Company. Following are the New India Assurance car insurance plans available:
- Private car insurance
This policy covers all types’ of private cars plying on India road against various risks. As per Motor Vehicle Act, 1988, it’s mandatory for every vehicle owner to avail third party insurance coverage in order to make the payment to a third party in case the car owner becomes legally liable for any damages or losses caused to a third party resulting from death/bodily injury or property damage caused during an accident. There are two types of private car insurance policies offered:
- Liability only covers:
This covers the legal liability of the owner-driver in case the car is involved in an accident causing third party property damage or resulting in death or bodily injury to the third party. The coverage also includes personal accident cover for owner-driver.
- Package policy:
Package policy covers third party liability, loss or damage caused to own vehicle due to any natural calamities or man-made perils and personal accident cover for self. Basically, a package policy provides comprehensive protection against all potential risks.
- Standalone own damage cover for private car
New India Assurance Company offers a standalone policy for availing own damage cover to the car which covers various risks that could cause loss or damage to the insured car.
- Standalone compulsory personal accident cover
Personal accident cover is compulsory under the Motor Vehicle Act with effect from 1st January 2019. This cover is provided to owner-driver whilst driving the vehicle including mounting and dismounting from or travelling in the vehicle as a co-driver. The policy comes with the sum insured of INR 15 lakhs.
Coverages Offered under New India Assurance Car Insurance
The scope of coverage under New India Assurance car insurance varies depending on the type of policy chosen.
Following are the coverages offered under liability only car insurance policies:
- Car owner’s legal liability towards death or bodily injury caused to a third party in case the car is involved in an accident
- Car owner’s legal liability towards property damage caused to a third party in case the car is involved in an accident
Following are the coverages offered under package car insurance policies:
- Third-party liability cover
If the car is involved in the accident, policy compensates for vehicle owner’s legal liabilities in the event of:
- Death or bodily injury caused to the third party
- Property damage caused to the third party
- Own damage cover
In addition to liability only cover, package policies cover insured vehicles from various man-made and natural calamities, such as –
- Fire, explosion, lightning or self-ignition
- Riot and strike
- Malicious act
- Terrorist act
- Earthquake (fire and shock) damage
- Flood, hurricane, typhoon, storm, inundation, tempest, hailstorm and cyclone
- Accidental external means
- Whilst in transit by road, inland waterways, air, lift or elevator
- Landslide/ Rockslide
- Personal accident cover
This cover aims to provide protection against accidental injuries resulting in death and disabilities to owner-driver. The whole amount of capital sum insured is payable in case of death. In the case of dismemberment, the percentage of compensation payable will be defined in the policy schedule depending on the type of disability, the extent of disability and loss of earning capacity.
|Nature of injury||Scale of compensation|
|Loss of two limbs or sight of two eyes or one limb and sight of one eye||100%|
|Loss of one limb or sight of one eye||50%|
|Permanent total disablement from injuries other than named above||100%|
Following are the covers offered under Standalone compulsory personal accident policy:
|Events covered||Compensation payable (as a % of sum insured)|
|Loss of two limbs or loss of sight of two eyes or one limb and sight of one eye||100%|
|Loss of one limb or sight of one eye||50%|
|Permanent total disablement from injuries other than above||100%|
Coverage under the policy will extend to all the vehicles owned by the owner-driver under the same policy.
Exclusions under New India Assurance Car Insurance
Following are the exclusions under New India Assurance car insurance policy:
- Wear and tear
- Consequential loss
- Loss or damage caused due to the vehicle being driven under the influence of alcohol and intoxicating drugs
- Mechanical breakdowns
- Loss or damage caused due to war, civil war, mutiny, rebellion, invasion and hostilities etc.
- Use of vehicle otherwise than in accordance with limitations as to use’ (e.g. private car being used as a taxi)
- Loss or damage caused when driving the vehicle with invalid driving license
- Claims arising out of contractual liability
Key Features and Benefits of New India Assurance Car Insurance
Following are the key features and benefits of New India Assurance car insurance policy:
- The policy provides comprehensive coverage
- The policy offers no claim discount ranging from 20% to 50% depending on the claim-free record
- The policy can be customised based on the requirement and coverage can be extended with add-ons which costs extra premium
- Policy benefits the survivor in case the accident results in death
- The policy covers the lawsuits resulting from an accident
- Protects the vehicle insured from various kinds of perils
- The policy offers additional discounts for safety measures taken such as the installation of an anti-theft device
- The policy can be conveniently bought online and offers instant renewal
- The policy offers a host of discounts and 24/7 customer support
- Cashless facility through a wider network of cashless garages across the country
Add – on covers available under New India insurance
New India Assurance car insurance coverage can be extended and enhanced with the help of additional optional add-ons. Following are the add-ons offered by the company which can be availed at an additional cost of the premium.
- Accessories cover: This add-on covers the loss or damage to the accessories fitted in the vehicle such as stereos, air-conditioners and fans etc.
- Personal accident cover for passengers and paid drivers
- Additional towing charges cover which reimburses the towing charges for up to INR 10,000
Insured Declared Value (IDV)
Insured declared value (IDV) is an important concept in car insurance. Basically, insured declared value is the maximum amount that is payable by the car insurance company in the event of total loss i.e. total damage to the car or if the car is stolen. Insured declared value (IDV) is the current market value of the car after factoring out depreciation on all parts. Depreciation rates are applicable as per the standard depreciation schedule effectively followed across the motor insurance industry. For non-factory fitted accessories, the insured declared value is calculated separately. Following is the depreciation schedule used for the calculation of insured declared value
|Age of the vehicle||% of Depreciation for adjusting Insured Declared Value (IDV) of the car|
|New car – between o to six months||5%|
|Between six months to one year||15%|
|Between one year to two years||20%|
|Between two years to three years||30%|
|Between three years to four years||40%|
|Between four years to five years||50%|
|6th year onwards||IDV is mutually agreed between insured and insurance company|
For cars older than five years of age, insured declared value or IDV is fixed based on an assessment of the car’s condition by the surveyor and not by the depreciation.
Claim Process for New India Assurance Car Insurance
Following is the process –
- Immediately intimate the insurance company during an accident or on the occurrence of a claim
- Lodge an F.I.R with the police immediately in case of theft and third party claims
- Take the car to a preferred network garage
- Submit all the documents to surveyor appointed by the insurer
- The surveyor will estimate the repair cost and based on surveyor’s report insurance company will provide approval
- Payment of claims will be directly made to the network garage.
- In case of reimbursement, submit all final bills or cash memos to the insurance company to get the claim amount reimbursed
Documents Required for Claims in New India Assurance Car Insurance
- Claim form filled and duly signed
- Copy of original policy document
- Copy of driver’s license
- Copy of Registration book
- Repair cost estimation
- Receipts of bill payment
- Police FIR in case of theft and third party liability cases
Buy/Renewal Process for New India Assurance Car Insurance
New India Assurance car insurance plans can be bought/renewed online without any hassles through Turtlemint. Following are the simple steps to follow for purchase or New India Assurance car insurance renewal online:
- Log on to Turtlemint home page
- Choose the category as ‘car insurance’
- Once you click on the category, you are requested to input car registration number or registration location code
- Once you provide the details, you can choose whether you want to renew your car insurance policy or buy a new policy for your car.
- If you choose ‘’buy new policy’’ you are requested to provide further details such as the car details (make and model of your vehicle, year of manufacturing, fuel type and variant) and personal details (name, contact information)
- Based on your details, car insurance policy quotes are generated. You can compare the plans offered by various insurance companies on the side by side basis before you select New India Assurance car insurance policy
- If you choose ‘’renew my policy’’, you are requested to provide further details such as the car details (make and model of your vehicle, year of manufacturing, fuel type and variant), expiry date of existing policy, policy type, previous claims, if any, no claim discount applicable, details of your insurance company and your personal details
- Based on your details, car insurance policy quotes are generated. You can compare the plans offered by various insurance companies on the side by side basis before you make New India Assurance car insurance renewal
- After choosing the plan, provide relevant details and continue to make payment through net banking/debit card/credit card. That completes your buying/renewal of car insurance policy.
Documents Required to Buy/Renew New India Assurance Car Insurance Policy
Buying or renewing car insurance requires only minimal paperwork. Following are the details and documents that need to be provided for purchase or renewal of car insurance:
- Vehicle information: Make and model, manufacturing year, fuel type and variant etc
- Driving license copy
- Address proof: Aadhaar card/ Utility bill/ Passport etc
- Bank account details with a cancelled cheque as a proof (for setting up automatic payment)
- Current declaration page (if you already have insurance)
The premium for car insurance is calculated by taking into consideration various factors. Following are some of the important factors considered for premium calculation:
- Age of the car
- Insured declared value
- Geographical zone
- The cubic capacity of the car
- Make and model
- Add-ons or riders opted, etc
The premium for New India Assurance car insurance or for New India Assurance car insurance renewal can be calculated instantly using an online premium calculator.
No claim bonus is the discount offered on the premium to the car insurance policyholder for not making any claim during the policy year.New India Assurance car insurance plans offer no claim bonus as per below table.
|Policy year||% of discount on premium|
|At the end of 1st claim-free year||20%|
|At the end of 2nd claim-free year||25%|
|At the end of 3rd claim-free year||35%|
|At the end of 4th claim-free year||45%|
It is the scheme formed by the Government of India to provide compensation to the victims of ‘’hit and run’’ accident cases. The amount of compensation payable under the scheme is INR 25,000 in the event of death and INR 12,500 for grievous hurt.
The consequential loss basically means an indirect loss which is not directly caused by insured perils but resulting in the insured’s inability to the vehicle. For example, waterlogging in monsoon season can cause car breakdowns when parked in waterlogged areas. Damages caused due to this is referred to as consequential loss.
Contractual liability in New India Assurance car insurance refers to any claim that is arising due to policyholder entering into a contract. For example, a car owner has taken a loan by pledging a car for a certain period of time. Let’s say, the car gets stolen/damaged during this period. Then, such losses or damages are referred to as contractual liability.