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Types of car insurance policies provided by the National Insurance Company

Types of car insurance policies provided by the National Insurance Company

Read this article to find out the different types of car insurance policies offered by the National Insurance Company and the importance of purchasing car insurance.

The National Insurance Company is one of the insurance companies established primarily in India. Being a government body, it is very pro-customer and has car insurance plans that will ensure full protection for your car as well as your money. This article will give you information on the types of insurance policies provided at the National Insurance Company along with points of why you need to buy an insurance policy on cars. 

Types of car insurance policies provided by national insurance

The National Insurance Company provides policies that protect policyholders financially in the event of an accident or accident. Here are the policy options for private car owners- 

Responsibility policy only 

Known as the Third Party Liability Policy, the National Insurance Company provides only a liability policy that provides financial protection to compensate for third-party loss or any damage to the third party vehicle in the event of Any incident involving the holder of the document. If you have had an accident that damaged the third-party car, you can only claim a liability policy. 

The National Insurance Company will inquire about the event and approve your claim if it is real. Once the claim is approved, they will transfer the amount according to the provision to your bank account so that you can compensate for the loss of the third party. However, the liability policy alone will not provide any financial assistance to repair any damage to the policyholder's car in the event of any unfortunate incident. 

Package policy 

The package policy offered by the National Insurance Company is usually called a comprehensive car insurance policy. This package covers the holder of the document in the event of any damage caused by the vehicle due to natural disasters, theft, fires and human problems such as riots, strikes, transportation, etc. The package policy covers most problematic cases including third-party responsibility and personal accident coverage.

In the event of theft or significant damage to the policyholder's vehicle, the National Insurance Company will provide a settlement amount equal to the declared insured value (IDV) of the vehicle. IDV is only the current total value that the car carries on the market. It is calculated by subtracting the depreciation value from the sale price of the car. If your car bears no damage due to any misfortune event, you can file a claim settlement if you have a package policy. 

The importance of buying a car insurance policy 

Your car is your most expensive. If you want to avoid unwanted and expensive repair bills, the best remedy is to invest in car insurance. Here are the reasons why you buy a car insurance policy: 

Mandatory legal requirement

According to the Indian Automobile Act, it is mandatory for every car owner to have a valid car insurance policy to drive their car legally on the road. If any driver is caught without car insurance policies or with an invalid car insurance policy, he/she is subject to heavy fines. 

Costly repairwork

Any damage to your car requires you to repair it. Your car is not only expensive to buy, but also for repair and maintenance. Events that cause damage to your car or steal the precious four wheels can be shocking. Investing in a car insurance policy will help you settle these expensive bills and be financially secure. 

Take away

With the increase in the number of vehicles on the road, accidents have become common and unpredictable. There are a lot of events that can make your car vulnerable to damage. Repairing these damages costs a bucket load that can burden. Thus, investing in a car insurance policy is the best way to protect yourself financially and your precious four wheels.

Read also

What are the different types of car insurance?

Points to consider when buying insurance cars in India

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.