New India was founded on July 23rd, 1919 by the House of Tata Founder member, Sir Dorabji Tata. The company came to be nationalized in 1973. The New India Assurance Company Limited is one of the leading global insurance groups and has offices and branches throughout India and in many countries abroad.
With a huge network of 1068 offices that comprise 26 Regional offices, 393 Divisional offices and 648 branches, New India employs 21000 personnel. It has the largest number of specialists and technically qualified employees at every levels of management.
New India is the only Indian insurance company to be rated by an international rating agency, an “A-” by A. M. Best Co. based on factors such as superior capital position and strong operating performance. The company earned a Gross Premium (in India) of Rs. 7097.14 crore in the year 2010-11. As on Mar 31, 2011, New India had assets worth Rs. 39621.27 crore. Moreover, it is one of the few companies to have established significant International operations and a long record of successful global trading. It earned an overseas premium of Rs. 1128.37 crore in the year 2010-11 accounting for more than 80% of total overseas premium in India.
The Motor Policy offered by New India Assurance provides insurance cover to scooters & motorcycles, private cars, all types of commercial vehicles and also motor trade (vehicles in show rooms and garages). Further, according to the Motor Vehicles Act, 1988, every vehicle on the road should be insured for liability of damages payable to third party due to accident, physical injury or death involving the vehicle. New India Assurance offers two types of policies, namely the Liability Only Policy and the Package Policy as per the preference of the customers.
Liability only policy: The Liability only policy covers the third party liability for physical injury or death and property of the third party. It also includes the Personal Accident cover for Owner-driver. For commercial and private vehicles, the maximum amount of liability covered is Rs. 7,50,000 and in case of two wheelers, it is Rs. 1,00,000.
Package Policy: The Package policy, in addition to the Liability only policy coverage, also covers loss or damage to the vehicle and its accessories in the event of an accident or due to various reasons. The various probable situations in which the vehicle is covered against damages are as follows:
- Fire, explosion, self-ignition or lightning
- Burglary, housebreaking or theft
- Riot and Strike
- Malicious Act
- Terrorist Act
- Earthquake (Fire and Shock) Damage
- Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm
- Accidental external means
- Whilst in transit by road, inland waterway, lift, elevator or air
- By landslide/Rockslide
Towing charges from the place of accident to a repair workshop are also covered by the policy up to a maximum of Rs. 300/- for two wheeler and Rs. 1,500 for private and commercial vehicle. A larger amount can be insured against payment of extra premium.
The risk of fire and/or theft can be insured as an added cover along with the mandatory “Liability only cover” except in case the vehicle belongs to the Class D, Tariff for Miscellaneous and special types of vehicles.
A policy, even the Package Policy, doesn’t cover the damages or loss that occur due to certain foreseeable reasons or those that occur while the vehicle is being illegally used or for purpose other than what it is capable of doing. Thus, the vehicle is not insured against damages due to the following:
- Wear and tear, breakdowns
- Consequential loss
- Loss when driving with invalid driving license or under the influence of alcohol
- Loss due to war or civil war
- Claims arising out of contractual liability
- Use of vehicle otherwise than in accordance with `limitations as to use' (e.g. private car being used as a taxi)
Add on Covers
In order to avail additional covers apart from the standard policy coverage, additional premium can be paid towards various Add on covers. These include covers for damage to accessories and electrical and non-electrical fittings such as fans, stereo and air-conditioners. An additional personal accident cover can be availed for passengers, paid driver, legal liability to employees in private car and legal liability to non-fare paying passengers in commercial vehicles.
How to select the sum insured
The amount insured by the policy is known as the Insured's declared Value(IDV) which is based on the manufacturer’s listed selling price of the particular brand and model and adjustment for depreciation at the time of insurance proposal or renewal. IDV is considered in cases where the insured claims total amount payable for vehicle which has been stolen or which has been totally damaged in an accident and is beyond repair.
The IDV for vehicles which are beyond the age of 5 years (the difference between the certificate of registration and the commencement of the policy) or are obsolete (models which have been discontinued to be manufactured) is decided upon through the understanding of the insurer and the insured.
The policyholder applying for renewal of a policy can also avail the no-claim bonus discount if they are eligible for it. The discount would depend upon the number of years of no claims and also the type of vehicle and would range from 20 percent to 50 percent.
The New India Assurance Company provides its policyholders complete information about how and when to proceed in case they want to file a claim in the event of insured damages or loss. The procedures differ for various eventualities such as accidents, theft, third party liability, etc. The following steps must be taken for the respective case:
Accidental damage to the vehicle:
- Immediate intimation to the nearest office for issuance of a Claim Form
- Claim Form should be duly filled in to be submitted along with a copy of Registration Certificate and driving license of the driver of the vehicle at the time of accident
- An estimate of repairs should be attached with the claim form
- Vehicle will be surveyed by a surveyor who is appointed by the insurance company
- The surveyor shall submit his report to the insurance company
- If the vehicle is badly damaged, a spot survey at the site of accident can also be arranged by the company
- Final bills/cash memos are to be submitted duly signed by the insured
- Salvage of the damaged parts may be required to be deposited with the insurance company after approval of the claim
In case of theft of the vehicle:
- An F.I.R. should be lodged with the police immediately
- The policy issuing office should be informed
- The claim form should duly be filled and submitted along with a copy of the Certificate of registration and the FIR
- The Final Police Report should be submitted as soon as it is received
- Full cooperation should be extended to the surveyor and/or investigator appointed by the company
- Once the claim is approved by the company, the Registration Certificate should be transferred in the name of the company and the keys of the vehicle should be handed over.
- A a letter of Subrogation and Indemnity on stamp paper duly notarized should be submitted
In case of liability claim:
- The insurance company should immediately be informed of any likely liability claim
- On receipt of summons from Court, the same should be sent to the company immediately
- Claim Form duly should be filled and submitted along-with copies of Registration Certificate, Diving License of the person driving the vehicle at the time of the incident and FIR
The insurance amount can directly be paid to the repairer if and only if it is a company approved garage. Also, any compulsory expenses, value of salvage not surrendered to insurer and depreciation will be borne by the insured.