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24th November 2015, 02:47 PM
Super Moderator
Join Date: May 2012
Re: Vehicle Insurance by National Insurance Company

NIC or National Insurance Company is the oldest Insurance Company in India. It was established in 1906 and since then carrying on general insurance business under private management until 1972, when its services were dedicated to the nation by the General Insurance Nationalization Act.

Vehicle/Motor Insurance

Key Benefits
Motor Insurance Contracts are subject to the basic principles applicable to property and liability insurance in general.

The owner of the vehicle must be a registered owner to the vehicle whereby one stands to benefit by the safety of the vehicle, right, interest or freedom from liability and stands to lose by any loss, damage, injury or creation of liability.


There are 2 types of covers available:

Liability Only cover - insures against any legal liability following an accident involving vehicle. It does not cover any damage to vehicle.

The policy covers the following risks only.
1. Injury or Death of Third Party
2. Property Damage (TPPD upto Rs. 7.5 Lacs)
Package cover –

Insures all responsibility and damages caused to vehicle.
The package policy is better and also known as Comprehensive Motor Insurance policy as it provides both third party coverage and damages/loss to one's own vehicle, co-passengers or self.

The policy covers own Damage to the Insured vehicle caused by:-
1. Accident by External Means Fire, Explosion, Self Ignition and Lightning
2. Transit by Road, Rail, Inland Waterway, Air, Lift
3. Burglary, House breaking or Theft
4. Terrorism, Riots, Strikes or Malicious Acts

Earthquake, Flood, Storm, Landslide, Rockslide

Not Covered
1. Consequential loss, wear and tear, mechanical or electrical breakdown, failures or breakages
2. Damage to tyres unless the motor vehicle is damaged at the same time when the liability of the insurer is limited to 50% of the cost of replacement ;
3. Any accidental loss or damage suffered whilst the insured or any person driving with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs.
4. Cost of part/s and allied labour , failure of which led any accident.

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