Types of Car Insurance Policies Offered By National Insurance

National Insurance Company is one of the primarily established insurance companies in India. Being a government body, it is highly pro-customer and has car insurance plans that will ensure complete protection of your car as well as your finances. This article will give you information on the types of insurance policies offered at National Insurance company along with points as to why you need to purchase a car insurance policy. 

Types of Car Insurance Policies Provided By National Insurance

National Insurance company offers policies that provide protection to the policyholders financially in case of any misfortune event or accident. The following are the options for policies for private car owners- 

• Liability Only Policy 

Commonly known as third party liability policy, National Insurance company provides a liability only policy that offers financial protection to compensate the loss of the third party or any damage sustained by the third party’s vehicle in case of any accident involving the policyholder. If you were involved in an accident which resulted in causing damage to the third party’s vehicle, you can claim the liability only policy. 

The National Insurance company will inquire into the event and approve your claim if it is genuine. Once the claim is approved, they will transfer the amount as per the verdict into your bank account so you can compensate for the third party’s loss. However, the liability only policy will not offer any financial assistance to repair any damages sustained by the policyholder’s car in case of any misfortune event. 

• Package Policy 

The Package Policy offered by National Insurance company is commonly called a comprehensive car insurance policy. This package covers the policyholder in case of any damage sustained by the car owing to natural calamities, theft, fire, human made troubles like riots and strikes, during transport, etc. The package policy covers most of the problematic situations including third party liability and personal accident cover.

In case of theft or extensive damage to the policyholder’s car, the National Insurance company will provide a settlement amount which is equal to the Insured Declared Value (IDV) of the car. IDV is nothing but the current total value that the car holds in the market. It is calculated by subtracting the value of depreciation from the selling price of the car. If your car sustains any damage due to any misfortune event, you can file a claim settlement if you have a package policy. 

Importance of Purchasing Car Insurance Policy 

Your car is your most cherished possession. If you want to avoid unwanted and expensive repair bills, the best remedy is to invest in car insurance. The following are the reasons why you should purchase a car insurance policy- 

• Legally Mandatory Requirement

According to the Indian Motor Vehicle 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 their car insurance documents or with an invalid car insurance policy, he/she is subject to pay heavy fines. 

• Expensive Repair Work

Any damage that is caused to your car requires you to repair it. Your car is not only expensive to purchase, but also to repair and maintain. Events that cause damage to your car or theft of your prized four wheels can be traumatic. Investing in a car insurance policy will help you to 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 so many more events that can make your car vulnerable to damage. Repairing these damages costs a bucket load which can be burdening. Thus, investing in a car insurance policy is the best way to protect yourself financially and your prized four wheels.

Also read

What Are The Different Types Of Car Insurance?

Points to Consider When Buying Car Insurance in India

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.