National Insurance Company (NIC) Motor Insurance Company

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11 min read

About National Insurance Company

This year, National Insurance Company is celebrating its 116th year in the country. National Insurance Company Limited is the oldest general insurance company in India. NIC was founded on 5th December 1906 in Kolkata, West Bengal, and it is today one of the most trusted and reliable insurance companies. With over 1730 branch offices, a strong workforce of over 13000 employees, and about 50,000 agents, the company has made a strong network across the country’s length and breadth.

From motor insurance to health insurance, from fire insurance to marine insurance, over 300 products have been introduced by the National Insurance Company. It is indeed one of the first few names that come to mind when one thinks of insurance in India.

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Key Highlights of the National Insurance Company

Famous for its presence and a long list of insurance products, NIC has been quite popular among the masses. Let us take a look at some of the company highlights:

  • National Insurance Company has offices in India as well as in Nepal
  • National Insurance Company is the first company in the Indian insurance sector that has a portable office
  • The company offers live chat support to its customers every minute of the day
  • NIC undertakes numerous Corporate social responsibility activities (CSR) and strives to operate in a sustainable manner

Awards and achievements of NIC Motor Insurance

National Insurance Company is a prestigious motor insurance company that fulfils its ethical responsibility to provide the motor insurance policy to the owners of the vehicles so that their protection and their vehicle’s protection can be ensured. Due to its customer-friendly motor insurance policies, the National Insurance Company is always high in demand. Some of its national and international awards and achievements are given below:

  • The company was awarded the BFSI Best Brands 2016 by the Economic Times for all-round performance to serve the policyholders in the General Insurance category
  • Samudra Manthan Best Insurer of the Year award was awarded to the company in the year 2016
  • SKOCH Order of Merit award (General Insurance category) was given to the National Insurance Company in the year 2017
  • The company became the winner of the Asset Asian Awards in 2017 for cash management solutions
  • Awarded as Economic Times Iconic Brands Award (Insurance Sector) in the year 2018 for its high brand value and credibility in the Indian market.

Key Features of NIC Motor Insurance

According to the Motor Vehicle Act 1988, it is essential for all motor vehicle owners to buy a motor insurance policy. The National Insurance Company (NIC) provides insurance coverage on vehicles subject to accidental damage and theft. It also provides risk coverage if any third party meets with accidental death or any property damage happens to the vehicle. Furthermore, personal accidental cover is also provided to the policyholder.

Some of the key features of NIC motor insurance are given below:

National Insurance Company offers many options under motor insurance. The coverage is as follows:

  • Third-party liability-Mandated by the government, the third-party liability covers the damages in case your vehicle hurts/ damages a third party person or property
  • Natural Disasters-Under comprehensive insurance, damages due to floods, earthquakes, landslides etc. are also covered
  • Man-made disaster-If your car/bike is damaged because of some riots, terrorist activities or any other man-made disaster, the damages will be covere
  • Theft-The biggest fear that a vehicle owner has is their vehicle getting stolen. But with NIC’s motor insurance, you can ensure that all such losses are taken care of
  • In transit loss-The damages that your insured vehicle suffers because of transportation by air/ water/ road will be covered by NIC
  • Personal accident cover-The government has also made it mandatory for every vehicle owner to have a Personal accident cover. In case of an accident, if the vehicle owner/ rider suffers permanent total disablement or accidental death, a sum of up to INR 15 lakhs is payable
  • National Insurance Company provides online motor insurance policies to the policyholders. They can buy these policies via credit card/debit card through the official website of NIC
  • If the policyholder buys any new vehicle by selling the old one, then the current motor insurance policy will be linked with the new vehicle as per the company’s terms and conditions
  • Before approving the motor insurance policy to the policyholder, the NIC may do an inspection of the vehicle
  • Each policyholder is given a certificate of insurance that proves that the insurance policy is valid to provide the risk coverage
  • NIC’s motor insurance plan is also valid in Nepal, Bangladesh, Bhutan, Maldives, and Pakistan but the policyholders have to pay an additional premium to enjoy the benefits of the motor insurance policy there
  • The policyholders can renew their motor insurance plan online.

Exclusions Under NIC Motor Insurance

National Insurance Company contributes a lot to the welfare of the people by providing them with motor insurance policies. But there are certain exclusions under NIC motor insurance. Some of the exclusions are given below:

  • Claims regarding repairing the vehicle without getting pre-approval from the company
  • Losses that come in the warranty period of the manufacturer
  • Depreciation of the vehicle’s replaced parts
  • Mechanical or electrical breakdowns
  • Defects/faults that come in the vehicle during the inception of the motor insurance policy
  • Damages that occur due to faulty driving/ not obeying traffic rules/ participating in illegal activities
  • Delay of more than 72 hours in delivering the accidental vehicle to the company (if it is not possible to remove the accidental vehicle from the spot due to the police investigation, then, the claim can be settled afterwards).

Types of NIC Motor Insurance

The National Insurance Company’s (NIC) Motor Insurance policy offers a range of customer-friendly features that completely secures your treasured set of wheels. With standard features like protection against theft, natural calamity, unintentional damage of the car, or the involvement of your vehicle in accidents that could have resulted in damage of property, injury, or death to a third party, a network of experts who redefine the concept of customer support, and the ease of purchasing the policy online, NIC’s private car insurance and two-wheeler insurance are great choices available.

National Private Car Insurance Policy

National Insurance Company offers a range of car insurance plans for your vehicle. The cost-effectiveness of NIC’s motor insurance plans keeps you from spending too much money in the event of an unfortunate accident.

Types of Insurance Features
Third-Party Liability Car Insurance Plan The National Car insurance policy protects you financially from any financial liability resulting from any bodily injury caused to a third person/ property by the insured car. Your third-party legal liabilities are also covered by your car insurance in the event of any damage.
Comprehensive Car Insurance Plan The car insurance policy acts as financial protection against any damage caused to the vehicle as a result of natural or man-made disasters. Your car is secured against events like fire, explosion, storm, and theft.

Third-party liability cover is also included in a comprehensive policy.

Stand Alone Own Damage Insurance Cover Any damage done to your car as a result of an accident or theft is covered by standalone own damage auto insurance. It pays for the price of fixing your car. Only if you have active third-party liability insurance coverage you are eligible to purchase a standalone own-damage car insurance policy.

National Two Wheeler Insurance Policy

The losses and damages sustained to or by the insured vehicle are covered by the two-wheeler insurance policy offered by the National Insurance Company.

Types of Insurance Features
Third Party Liability Policy Any loss or harm to a third party caused by an insured vehicle is covered by a third-party insurance policy. It covers third-party property damage and personal injury brought on by the insured two-wheeler.
Comprehensive Two Wheeler Insurance Policy This comprehensive policy covers the cost of damages to your vehicle caused by any natural or man-made perils. Third-party liability coverage is also included in the comprehensive two-wheeler policy. With this policy, you are covered in the event that an accident involving the insured motorcycle results in property damage to a third party or bodily harm to a victim. The compulsory  personal accident cover for the rider is also included in the two-wheeler insurance policy.
Stand Alone Own Damage Two Wheeler Insurance Cover If you already have an active third-party liability insurance policy, you can add a standalone own damages cover to protect your two-wheeler. Standalone own damages bike insurance guards the insured bike against any losses or damages sustained as a result of an accident or catastrophe. It also covers losses brought on by the theft of your bike.

The Process to Buy NIC Motor Insurance

You can approach the company or an agent to purchase a car insurance plan from National Insurance online as well as offline. Alternatively, a wiser and more convenient option is to purchase the plan after thorough market research. Following these steps will allow you to purchase a car insurance policy from Paybima’s official website.

  • Visit the Paybima Website: Visit the PayBima website online and choose “Motor Insurance”.  Then, decide which kind of car insurance or two-wheeler insurance policy you wish to purchase. National Insurance offers three different types of motor insurance: Standalone Own Damage Policy, a Comprehensive Insurance Plan, and Third-Party Liability Only.
  • Fill in your details: The following step is submitting information about your car, like its make and model, year of manufacture, and registration number. Additionally, include personal information such as your name, phone number, address, and type of insurance. Based on the requirements and the facts you provide, PayBima will provide the best quotes. PayBima provides personalised assistance to help you choose an appropriate motor insurance plan for your car/ bike.
  • Compare the policies: After entering the necessary information, PayBima will provide a list of available motor insurance plans along with their premium costs and cover benefits. The list also includes the premium cost and coverage for the National Insurance motor insurance policy. On the basis of premium cost and coverage advantages, you can easily compare the National Insurance car or two-wheeler insurance policy with other top insurance plans offered in the market. Choose the policy which best serves your requirements.
  • Submit the proposal form: Once you choose the policy for your vehicle, the next step is to fill out the form that appears on your screen with all the essential details about your vehicle and yourself. Then submit it along with all the essential documents.
  • Make the payment: Lastly, make the payment of the premium for the insurance plan you choose for your vehicle. Your insurance documents will be mailed to you within a matter of a few seconds.

The process to renew NIC Motor Insurance

While motor insurance comes with a long list of benefits, you need to keep in mind that these benefits are time-bound. Your insurance policy comes with an expiry date. The third-party liability insurance can last for 3 to 5 years, depending on the vehicle. However, your comprehensive policy or the own-damage coverage has to be renewed on an annual basis. Missing the date can not only put you in legal trouble, but in case of an accident, an expired policy will not fetch you any benefits. You will also lose the hard-earned No Claim Bonus.

Once the policy expires, you will have to renew it within the grace period of 30 days. Though a claim made in the grace period will not be accepted. Therefore, getting your policy renewed on time is crucial.

If you are renewing the policy on the day it expires or before it, then the process of renewal is similar to that of buying a new one. Log on to PayBima and renew the policy in a jiffy. Visit the PayBima website and enter your insurance policy number. The details of your ongoing plan will be displayed, you can review it and proceed. In case you want, you can add/ drop any add-ons that you want to. Also, select the appropriate percentage of your No Claim Bonus. The premium would be proportionally altered as per the changes that you make. Once you are satisfied with the premium amount, click Pay. As soon as you make the payment, the policy will be renewed, and you will receive a soft copy instantly.

If you need any help renewing your  NIC Motor Insurance, you can call 1800 267 6767 or drop a mail at paybima.care@mahindra.com.

The process to make a claim for NIC Motor Insurance
To make a hassle-free and quick claim for NIC Motor Insurance, follow the steps below-

  • Inform National Insurance about the incident: To start with, inform your insurance company about the incident and also convey that you wish to make a claim. You can call customer care or email the company about the same.
  • Collect relevant documents: In case of an accident, make an FIR and collect the report. You’ll need to submit a copy of the report while making a claim. Other than that, a valid driver’s driving license, a registration document of the vehicle, original policy documents, bank account details for reimbursement claims( if applicable), and original repairs bills(if applicable) are required.
  • Fill up the claim form and submit: Collect the National car insurance form and fill it out with the correct information. While submitting, attach all the documents mentioned above and others, if asked.
  • Claim settlement: If your car is repaired in any of the network garages, the insurance company will pay the repair cost. In case of reimbursement, you will need to submit the repair bill, which the company will settle within a few days.

Review of NIC Motor Insurance

National Insurance is a wholly-owned public sector general insurance company by the Government of India. The company was founded in 1906 in Kolkata and became a nationalised company in 1972. Because of its history, the company is trusted and well-liked by people looking to purchase general insurance policies. The company provides general insurance solutions not only in India but also in Nepal. With over a century of service, the company has made its name for quick, hassle-free services and easy settlement of claims.

  • You can choose a car insurance policy from a wide range of selections, thus, getting what serves your purpose best
  • In order to make quick and simple cashless claim settlement possible, the agency has partnerships with many garages throughout India
  • The price of the motor insurance plans is reasonable, enabling people to pay the premiums with ease
  • Additional cover is available for lost accessories, personal injury to the owner and other passengers, legal liability for hired drivers, and enhanced legal responsibility for property damage to a third party up to INR 7.5 lakhs
  • Get a discount if your vehicle has certified anti-theft equipment installed. Additionally, there is a concession for specially designed vehicles for the blind, physically disabled, or mentally challenged.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

FAQs on National Insurance Company (NIC) Motor Insurance Company

Is it possible to renew lapsed car insurance?

Yes, lapsed car insurance can be renewed; however, in that case, the car would be inspected by the company officials before renewal of insurance.

What is a Personal Accident Cover?

In compliance with the Motor Vehicles Act and as part of the overall motor insurance, NIC offers personal accident coverage in the unfortunate event that you are involved in a car accident. This accident coverage can also be extended to passengers, as long as their number doesn't exceed the vehicle's maximum permitted occupancy.

Does the car insurance plans offered by the National Insurance cover towing charges?

Yes, the car insurance plans offered by the National Insurance cover towing charges up to INR 1500 maximum.

How do I make changes to my existing car insurance policy with National Insurance?

It is essential that you inform the insurer of any changes to your contact information, including your phone numbers, your name, any modifications you have made to the vehicle, etc. The insurer uses an endorsement to accomplish this.
To learn more about any existing policy changes, you can contact or visit one of the local National insurance offices. Some of these modifications might need the assistance of relevant documentation.

Are the National Insurance Company insurance policies available for used cars?

Yes, the National Insurance Company insures all private cars with an IDV of less than INR 25 lakhs. You can learn more about this by contacting the insurer.

How to check the policy status of my car?

To check the status of your policy, you can check your policy papers. If you want you can also go to the insurer's official website. Simply enter your registered user ID and password to check the status of your policy online.

Aug 12, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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