New India Assurance Car Insurance
New India Assurance Company is a Government-backed general insurance company which enjoys very good trust among individuals. The company was founded in 1919 by Sir Dorabji Tata and today, it functions in 28 countries thus providing insurance solutions nationally as well as internationally. In March 2017, the company’s business volume crossed Rs.19, 000 crores. Various general insurance products are offered by the company like motor insurance, health insurance, travel insurance and others. Moreover, marine insurance policy for corporates is also available.
The company’s car insurance policy is a comprehensive policy for privately owned cars. The coverage is good while the premium rates are affordable. There is also a liability only policy which covers the mandatory third party financial liability. The premium for this policy is very low. The package policy, on the other hand, offers good inbuilt as well as optional coverage benefits. The policyholder can choose the required optional coverage features by paying an additional premium.
Key Benefits and Features of New India Car Insurance Plans
New India’s car insurance plans have some salient features and benefits. These are as follows –
- The policy covers all types of private cars which are driven on Indian roads
- Two coverages are available. The policyholder can choose liability only cover or a package car insurance cover
- If no claim is made in any policy year, a no claim discount is given. The rate of this discount is 20% and this discount is given in the renewal premium. Thereafter, for each successive claim-free year, the discount increases. The policyholder can enjoy a maximum of 50% premium discount for not making any claim for five successive policy years.
- The comprehensive package policy has an inbuilt coverage for towing of the car to the nearest garage in case of an accident. The coverage for towing is Rs.1500 for cars.
- If the policyholder chooses liability only policy, he can also opt for a restricted additional cover on his car. This cover is given for theft and fire related damages suffered by the car.
- Four types of add-on covers are available under the plan. Add-on covers increase the scope of coverage and come at an additional premium
- The available add-ons include coverage for loss or damage of accessories fitted in the car, personal accident cover for the passengers or paid driver, legal liability to employees and legal liability to non-fare paying passengers in commercial vehicles.
- Claims can be settled in the cashless mode if the car is taken to one of the networked garages of the company. if not, claim would be settled through reimbursement.
New India Car Insurance Policy at a Glance
New India offers car insurance policy for private cars. For commercial vehicles, a separate commercial motor insurance policy is offered. The sum insured of the car insurance policy is determined by the Insured Declared Value (IDV) of the car which is the market value of the car minus the depreciation. Based on the IDV, the premium rate is fixed. Under third party policies, physical damage to third parties or damage to their properties is covered. Under comprehensive policies, damages suffered by the car are also covered. There are four add-on coverage benefits too which the policyholder can choose depending on his coverage requirements.
Insured Declared Value (IDV)
Insured Declared Value or IDV in short, reflects the value of the car. In a car insurance policy, the IDV is the effective sum insured of the policy. This is the maximum liability up to which the insurance company would pay a claim. The IDV is calculated by adjusting the market price of the car with the relevant age-based depreciation. The older the car, the lower would be the IDV. The premium of the policy also depends on the IDV. Higher the IDV, higher would be the premium charged. The insurance company pays the IDV in case of theft or total loss of the car. In other cases, the actual costs incurred in case of damages caused or suffered are indemnified. In case of cars which are more than 5 years old, the model is considered to be obsolete. In such cases, the IDV is fixed by mutual understanding between the insurance company and the policyholder.
Also Read: What is IDV and How it is Calculated?
New India Car Insurance Premiums
The premium of the car insurance policy offered by New India is calculated by the insurance company. The premium depends on a lot of factors which include the following –
- The type of policy selected – third party policies have the lowest premiums which are set by the IRDA. If the policyholder chooses the package policy, the premiums would be higher as the policy has a wider scope of coverage
- IDV – IDV is the sum insured of the policy. Thus, it affects the premiums directly. Premiums are higher for higher IDVs and vice versa
- Cubic capacity of the car – the cubic capacity of the car’s engine also affects the premium. Higher the engine capacity, higher would be the premium charged
- Geographical zone – premiums for car insurance policies also differ with differing geographical zones. Premiums in metro cities are higher than premiums in other cities of India
- Age of the vehicle – the age of the vehicle increases the rate of depreciation. This increasing depreciation reduces the value of the vehicle and consequently the premium charged. Thus, the older the vehicle, the lower would be the premium rate and vice versa.
- GVW for commercial vehicles – in case of commercial vehicles, GVW is considered in premium calculation. Premiums are higher for higher GVWs and vice versa
- Add-on covers – add-on covers are available with package policies. They increase the scope of cover and come at an additional premium. So, if the policyholder chooses add-ons, the premium would increase
New India Car Insurance Claim Process
The claim process to be followed under New India’s car insurance policies is as follows –
- Inform the insurance company of the claim immediately
- The company would guide you and arrange for the vehicle to be taken to the nearest preferred garage
- The surveyor would visit the garage and inspect the damages
- Once approved, repairs start.
- The insurance company pays the repair costs and the claim is settled.
Documents required for filing a claim for New India Car Insurance
For filing a claim, the following documents would be required –
- RC book of the car
- Driving license of the owner/driver
- Policy document or insurance certificate
- FIR in case of theft or third party claims
- Road tax verification
- Duly filled in claim form
- Original bills of repairs
Procedure to Renew New India Car Insurance Policy Online
For renewing car insurance online, the following steps can be taken –
- Visit New India’s website at www.newindia.co.in/portal/
- Choose ‘Motor Insurance’, Choose ‘Private Car’ and then choose ‘Buy Online’
- You would be taken to a new page where you can pay the premium online and renew your plan