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National Insurance

TopCorporate Profile

National Insurance Company is the second largest non-life insurance company and the oldest insurance company in India having a strong market presence in Northern and Eastern India.

National Insurance Company Limited came into existence in 1906 with its registered office at Kolkata, West Bengal. The year of 1972 saw the acceptance of the General Insurance Business Nationalisation Act following which 21 foreign and 11 Indian companies came to be amalgamated with National Insurance Company. As a result, it became a subsidiary of General Insurance Corporation of India (GIC), fully owned by the Government of India. After the General Insurance Business (Nationalisation) Amendment Act on 7th August 2002, National Insurance Company has been operating as a Government of India undertaking. In 1974, it started off with a premium base of Rs. 50 crores which grew to Rs. 402.2 crore as of 2007-2008. The paid-up share capital of National Insurance Company stands at Rs. 100 crore.

National Insurance Logo

As one of the leading public sector insurance companies in India, National Insurance Company Ltd. (NIC) carries out non life insurance business in India. With its headquarters at Kolkata, NIC boasts of a network of about 1000 offices and more than 16,000 skilled personnel across the country. Its branch offices in Nepal enable it to carry out its foreign operations.

NIC offers a range of more than 200 policies that address the diverse insurance requirements of its customers. Appropriate customization in its policies according to customer needs has helped it cater to 1.4 crore policyholders in an efficient and satisfactory manner. It offers a wide range of general insurance policies across Fire, Marine and Miscellaneous insurance to almost all the sectors and industries in the Indian economy such as Aviation, Telecom, Banking, Power, Oil & Energy, Information Technology, Shipping, Healthcare, Plantations, Foreign Trade, Agronomy, Tea, Environment, Education, Automobile and Space Research.

TopCompany Milestones

Being the fastest growing Non-life Insurance Company in India, National Insurance Company has gained international recognition among the top 5 General Insurance Companies in the Asia Pacific region. In order to achieve this feat, the company has established connectivity among 1000 offices across India and is preparing to launch the facility to buy insurance policy online. To facilitate easy access to its services, the National Insurance Company has tie-ups with leading banks in India and corporate sectors and state governments. ‘May I help you’ counters have been set up at Head Office and all Regional Offices to ensure optimum assistance and convenience to customers.

National Insurance Company is the second largest non-life insurer in India owing to wide spread presence in the northern and eastern parts of the country. Owing to its vast presence and its strong financial stability, the company has been listed among the top Global Business Insurers. Moreover, the Citizens Charter Commitments are being implemented by all offices of the company.

TopManagement Team

With a highly qualified and experienced team of managers, National Insurance Company has been able create for itself a niche in the Indian insurance sector. The members of the management team, using their knowledge of the insurance sector and the requirements of customers, strive to implement policies which are beneficial and convenient to the policyholders and in strict adherence to the guidelines laid down by the Insurance Act, 2002. The following personnel constitute the management team:

  • Shri N.S.R. Chandraprasad, Chairman-cum-Managing Director
  • Shri K Singh, General Manager
  • Shri A V Girija Kumar, General Manager
  • Shri S Yugandhar Rao, General Manager
  • Shri C P R Varma, General Manager
  • Shri K P Brahma, General Manager
  • Shri S. Bhattacharyya, General Manager
  • Shri K.L. Ravindranath Babu, General Manager

TopProducts & Services

National Insurance Company offers as many as 200 kinds of policies including motor policies. The policies are by default designed according to the preferences of the customers and can be customized according to their specific requirements as well. Motor policies for two-wheelers and private car lie within the Personal Line Insurance section. Apart from motor insurance, it is also engaged in rural insurance, industrial insurance and commercial risk insurance.

TopAwards & Recognition

Being the fastest growing Non-life Insurance Company in India, National Insurance Company has gained international recognition among the top 5 General Insurance Companies in the Asia Pacific region. In order to achieve this feat, the company has established connectivity among 1000 offices across India and is preparing to launch the facility to buy insurance policy online. To facilitate easy access to its services, the National Insurance Company has tie-ups with leading banks in India and corporate sectors and state governments. ‘May I help you’ counters have been set up at Head Office and all Regional Offices to ensure optimum assistance and convenience to customers.

Other achievements:

  • Second largest Non-life Insurance Company in India
  • Listed among the top Global Business Insurers
  • Awarded the “AAA/STABLE” financial strength rating by CRISIL
  • Conciliatory Fora for facilitating quick settlement of Motor Third Party claims and compromise settlement in Lok Adalat and Jald Rahat Yojana
  • Citizens Charter Commitments being implemented by all offices

TopContact Details

Mailing Address

3 Middleton Street,
Kolkata - 700071
West Bengal
Telephone Number: (033)-22831705, 22831706
Fax: (033)-22831712
Email: website.administrator@nic.co.in
Website: http://www.nationalinsuranceindia.com/nicWeb/nic/Home.jsp

TopPrivate Car Insurance

The insurance policies offered by National Insurance Company for two-wheelers and four-wheelers secure the policyholder against loss that may occur due to damage, theft or burglary of the vehicle or any part or electrical accessories. The third party insurance, being a compulsory requirement according to the law in India, is a part of all motor policies, whether comprehensive or otherwise and provides cover against personal injury and damage to third party.

Coverage

The coverage of the policy depends on the preference of the customer who may choose the most suitable policy according to his requirement. The motive to buy a policy is to secure oneself against the loss due to damage to the vehicle and/or its accessories. The other motive is to comply with the Insurance Act which directs all vehicles to have a third party insurance.

The two types of policies available for two-wheelers:

  • Policy A: Third party insurance to cover Insurance Act liability 
  • Policy B: Comprehensive insurance for both own damage and Act liability

The Standard form of a motor policy by National Insurance Company has two sections; Section I covers the policyholder against loss or damage to the insured vehicle and/or its accessories due to the following reasons:

  • fire, explosion (both external and internal), self-ignition or lightening
  • burglary, housebreaking or theft
  • riot and strike
  • earthquake (fire and shock damage)
  • flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm
  • accidental external means
  • malicious act
  • terrorist activity
  • in transit by road, rail, inland waterway, lift, elevator or air

Section II covers Liability to third parties i.e. coverage to the insured in the event of an accident either caused by the use of the motor vehicle against all sums such as claimants costs and expenses, which the insured shall become legally liable to pay in respect of the following:

  • Death of or bodily injury to any person, including occupants in the motor vehicle, provided such occupants are not carried for hire or reward, but not where such death or injury arises out of and in the course of the employment of such person by the insured. Limits of liability under this section as per M V Act, 1988 is unlimited
  • Damage to property other than property belonging to the insured or held in trust or in the custody or control of the insured. Limit of liability is Rs.6000/- in respect of any one claim or series of claims arising out of one event but India Motor Tariff Act provides for increased limits up to unlimited liability for TP ( Third Party ) property damage, at an additional premium

Exclusions

The policy excludes consequential loss, wear and tear, mechanical or electrical breakdown, failures or breakages. Wear and tear or damage to tyres is also excluded unless the tyres are damaged at the same time as the vehicle and the insurance liability is limited to 50% of the replacement cost. If the insured person or any person driving the vehicle with the consent of the insured is under the influence of intoxicating liquor or drugs, the insurance company is not liable to cover for the accidental loss or damage. The policy also excludes the cost of part(s) and allied labour, failure of which may have led to any accident.

General Exceptions

There are certain situations which are exceptions to the insurance coverage. For example, if the vehicle is outside the geographical area stated in the policy, the damages or losses incurred due to any accident won’t be covered by the company. Similarly, if the claim lies out of any contractual liability, or if the vehicle is being used otherwise than according to the limitations of use, or if the vehicle is being driven by any person other than a person defined as a driver in the Drivers’ Clause, the situation will be stand to be an exception to the insurance coverage. Insurance doesn’t provide cover against nuclear risks and liability arising directly or indirectly from nuclear weapons and material.

Period of the Policy

Most of the motor vehicle policies, whether for two-wheelers or four-wheelers, are generally annual policies. Although there is an exception where the policy may last till the vehicle is fit in accordance to the RTA.

Basis of Sum Insured

The invoice price of a new vehicle is taken as the base for calculating the total value insured and the insurance premium. Any additional expenditure on accessories is added to the invoice price and accordingly the insured amount is calculated. The motor insurance business is governed by the rules and regulations laid down by the Tariff Advisory Committee which also provides the rates and terms and conditions for the transactions.

Premium for Private Car Policies

The premium for an insurance policy for a four-wheeler covering own damages is equal to around 3% of the estimated value declared. Liability premiums are added @ Rs. 340 for cubic capacity not exceeding 1500cc or Rs. 509 for cubic capacity exceeding 1500cc.

Premium for Motor Cycle / Scooter Policies

The damage premium charged on two-wheelers ranges from Rs. 33 to Rs. 132 depending upon the cubic capacity. A surcharge on Insured Estimated Value (1.1% except Auto Cycle) is also added to the damage premium. The minimum Act premium ranges from Rs.57 to Rs.96 depending upon cubic capacities.

For all the motor policies, whether four-wheelers or two-wheelers, premium has to be deposited with 5% service tax and the entire premium has to be submitted in advance before the commencement of risk.

Basis of Indemnity

The basis of indemnity is taken to be the extent of the loss or damage in terms of replacement value of the parts to be replaced inclusive of the associated labour in case of partial accidental damage. It is assessed by an independent surveyor or an in-house surveyor keeping in view, the terms and conditions of the policy. In case of total loss, the market value determined by the independent surveyor will be the basis of indemnity. Sometimes, the damage is extensive and the repairing comes out to be uneconomical. The surveyor may consider declaring total loss. The insured may also retain the salvage, in which case, the net amount is disbursed towards total settlement.