Private Car Insurance | National Insurance Company

Dec 11, 2025
Admin

Car insurance is more than just a legal requirement—it’s a financial safety net that protects you against unforeseen losses, damages, and liabilities. Among the many providers in India, National Insurance Company Limited (NIC) stands out as one of the oldest and most trusted names in the insurance industry. With a strong reputation for reliability and customer satisfaction, National Insurance offers a range of car insurance products tailored to meet the diverse needs of vehicle owners.

In this guide, we’ll explore everything you need to know about Car Insurance by National Insurance, including its types, features, benefits, claim process, coverage options, exclusions, and more.

Introduction to National Insurance Company

National Insurance Company Limited (NIC) is a Government of India-owned general insurance company, established in 1906. Headquartered in Kolkata, it is one of the four public sector general insurance companies in India. Over the decades, NIC has built a strong reputation for offering reliable and customer-centric insurance solutions, including car insurance, health insurance, travel insurance, and home insurance.

The company’s car insurance plans are among its most popular offerings, providing extensive coverage at affordable premiums. Whether you own a new car or a used one, National Insurance ensures that you and your vehicle are protected against damages, theft, and third-party liabilities.

What is National Insurance Car Insurance?

National Insurance Car Insurance is a policy designed to protect car owners from financial losses arising due to accidents, theft, or damage to the car. It also covers third-party liabilities as per the Motor Vehicles Act, 1988, ensuring that you remain legally compliant while driving on Indian roads.

In essence, a National Insurance car policy provides financial protection for:

Damages to your vehicle caused by accidents, fire, or natural disasters.
Theft of the vehicle.
Third-party liabilities, including injury or death.
Personal accident coverage for the owner-driver.

Types of Car Insurance Policies Offered by National Insurance

National Insurance offers two primary types of car insurance policies:

1. Third-Party Car Insurance Policy

This is the most basic and legally mandatory form of car insurance in India. It covers:

Bodily injury or death of a third party.
Property damage to a third party (up to Rs. 7.5 lakh).

However, it does not cover damage to your own vehicle or any injuries sustained by you.

2. Comprehensive Car Insurance Policy

A comprehensive policy offers all the benefits of a third-party cover and extends protection to your own vehicle. It covers:

Accidental damages to your car.
Theft of the car.
Damages from natural or man-made calamities (floods, fire, riots, etc.).
Third-party liabilities.
Personal accident cover.

This plan offers holistic protection and is ideal for car owners seeking complete peace of mind.

Key Features of National Insurance Car Insurance

National Insurance car insurance policies come with several unique features that make them a reliable choice:

Wide Range of Coverage – Protects your car against various risks, including accidents, theft, fire, natural disasters, and vandalism.
Third-Party Liability Protection – Covers legal and financial liabilities in case your car causes injury or property damage to others.
Personal Accident Cover – Offers compensation to the owner-driver in case of death or permanent disability resulting from an accident.
Add-On Covers – You can enhance your policy with add-ons like zero depreciation, roadside assistance, and engine protection.
Cashless Garage Network – Over 3,000+ authorized garages across India for cashless repair services.
No Claim Bonus (NCB) – Receive discounts on renewal premiums for claim-free years.
24x7 Customer Assistance – Support is available round the clock for claims and queries.
Digital Services – You can buy, renew, and file claims online effortlessly.

Benefits of Choosing National Insurance Car Insurance

Opting for National Insurance offers multiple advantages:

1. Government-Owned and Trusted Brand

Being a PSU, National Insurance ensures transparency, reliability, and a customer-first approach.

2. Comprehensive Coverage

The policy covers almost every aspect of vehicular risk—from natural disasters to theft and accidents.

3. Affordable Premiums

The premiums are competitively priced, making it an affordable option for a wide range of customers.

4. Quick Claim Settlement

The company is known for its efficient and transparent claim settlement process, minimizing your stress in difficult times.

5. Add-On Options

You can tailor your policy with add-ons for enhanced protection based on your driving habits and location.

6. Paperless Processes

From purchasing to renewal, everything can be done online in a few simple steps.

Coverage Under National Insurance Car Insurance

A comprehensive car insurance policy from National Insurance typically includes the following coverage:

Accidental Damage: Covers repair or replacement costs due to an accident.
Theft: Provides compensation if your car is stolen.
Natural Calamities: Covers damages due to floods, earthquakes, cyclones, and other natural disasters.
Man-Made Calamities: Covers losses due to riots, strikes, vandalism, and terrorist activities.
Fire and Explosion: Protection against damage caused by fire or explosion.
Personal Accident Cover: Offers financial compensation in case of injury or death of the owner-driver.
Third-Party Liability: Covers legal liabilities arising from damage or injury to third parties.
Towing Charges: Covers reasonable towing costs after an accident.

Exclusions in National Insurance Car Insurance

While National Insurance offers extensive coverage, there are certain exclusions you should be aware of:

Driving Without a Valid License – Claims are not entertained if the driver does not possess a valid driving license.
Drunken Driving – Accidents occurring under the influence of alcohol or drugs are excluded.
Mechanical or Electrical Breakdown – Regular wear and tear or breakdowns are not covered.
Consequential Losses – Losses not directly caused by an accident are excluded.
War or Nuclear Risks – Damages due to war or nuclear events are not covered.
Outside India – Coverage is limited to within India unless an extension is purchased.
Unauthorized Usage – Using a private car for commercial purposes will void the policy.

Add-On Covers Offered by National Insurance

Add-ons allow you to customize your car insurance policy for better protection. Some popular add-ons include:

Zero Depreciation Cover – Ensures full claim settlement without factoring in depreciation.
Roadside Assistance – 24x7 help in case of breakdowns, flat tires, or towing needs.
Engine and Gearbox Protection – Covers damages due to water ingress or lubricant leakage.
Return to Invoice Cover – If your car is stolen or totaled, you receive the invoice value, not the depreciated value.
NCB Protection Cover – Retain your No Claim Bonus even after making a claim.
Key Replacement Cover – Covers expenses for replacing lost or stolen car keys.

How to Buy National Insurance Car Insurance Online

Purchasing a car insurance policy from National Insurance is quick and easy. Here’s how you can do it:

Visit the Official Website – Go to nationalinsurance.nic.co.in.
Select ‘Motor Insurance’ – Choose the car insurance section.
Enter Vehicle Details – Provide registration number, make, model, and year of manufacture.
Choose the Type of Policy – Select either third-party or comprehensive coverage.
Customize with Add-Ons – Add extra covers based on your needs.
Review and Pay – Check premium details and make the payment online.
Receive Policy Document – The policy will be emailed to you instantly.

How to Renew National Insurance Car Insurance Online

Renewing your policy before it expires ensures continuous protection. Here’s how:

Visit the official website of National Insurance.
Click on ‘Renew Existing Policy’.
Enter your policy number or vehicle registration number.
Review your policy details and make necessary updates.
Select add-ons if desired.
Pay the renewal premium online.
Download the new policy document immediately.

National Insurance Car Insurance Claim Process

Filing a claim with National Insurance is straightforward. There are two types of claims—cashless and reimbursement.

Step 1: Inform the Insurance Company

Notify National Insurance about the accident or theft immediately via phone, email, or the website.

Step 2: Register the Claim

Provide essential details like policy number, vehicle number, and accident details. You’ll receive a claim reference number.

Step 3: Inspection and Survey

A surveyor will inspect the vehicle to assess the extent of damage.

Step 4: Vehicle Repair

For cashless claims, take your car to a network garage.
For reimbursement claims, you can repair it at any garage and submit the bills later.

Step 5: Submit Documents

Submit documents such as the claim form, FIR (in case of theft or third-party injury), driving license, RC book, and repair estimates.

Step 6: Claim Settlement

Once verified, National Insurance will process your claim and settle the amount either directly with the garage (cashless) or via reimbursement.

Documents Required for Claim Settlement

Duly filled and signed claim form.
Copy of insurance policy.
Driving license of the person driving at the time of the incident.
RC book of the vehicle.
FIR copy (for theft or third-party damage).
Repair estimate and bills (for reimbursement claims).
Discharge voucher.

No Claim Bonus (NCB) in National Insurance

National Insurance rewards policyholders who drive responsibly with No Claim Bonus. If you don’t make any claims during a policy period, you earn a discount on your premium at renewal.

Here’s how NCB accumulates:

1 claim-free year: 20% discount
2 consecutive years: 25%
3 years: 35%
4 years: 45%
5 years: 50%

You can also transfer your NCB to another insurer if you decide to switch providers.

Tips to Lower Your Car Insurance Premium

Install Anti-Theft Devices – Get discounts by installing certified anti-theft devices.
Choose Higher Deductibles – Opting for a voluntary deductible can lower premiums.
Maintain a Clean Driving Record – Avoid claims for minor damages.
Renew on Time – Late renewals may increase your premium.
Compare Add-Ons Wisely – Only select add-ons that truly benefit you.

Why Choose National Insurance Over Private Insurers?

Government Backing – Provides a sense of security and trust.
Transparent Operations – No hidden charges or misleading clauses.
Pan-India Presence – Over 1300 offices and 3,000+ network garages.
Reliable Claim Support – Quick turnaround and fair settlements.
Legacy of Experience – Over a century of expertise in the insurance sector.

Frequently Asked Questions (FAQs)

Q1. Is car insurance from National Insurance mandatory in India?

Yes. As per the Motor Vehicles Act, every vehicle owner must have at least third-party car insurance to drive legally in India.

Q2. How can I check my National Insurance car policy status?

You can check your policy status by visiting the official website and entering your policy number under the ‘Policy Status’ section.

Q3. Can I renew my National Insurance car policy after expiry?

Yes, you can renew it within 90 days of expiry. However, after that period, you may lose your accumulated No Claim Bonus.

Q4. What should I do if my car is stolen?

Immediately file an FIR at the nearest police station, inform National Insurance, and submit the required documents for claim processing.

Q5. Does National Insurance offer roadside assistance?

Yes, you can opt for the Roadside Assistance add-on that provides help in emergencies like breakdowns, towing, or flat tires.

Q6. How is the premium calculated for National Insurance car insurance?

The premium depends on factors such as car make and model, age, fuel type, location, IDV (Insured Declared Value), and add-ons selected.

Q7. Can I transfer my No Claim Bonus to a new car?

Yes. National Insurance allows you to transfer your NCB to a new vehicle or a new insurer when you switch.

Q8. What is the maximum NCB discount offered?

The maximum No Claim Bonus discount you can earn is 50% after five consecutive claim-free years.

Q9. How do I contact National Insurance for claims?

You can reach their toll-free number 1800 345 0330 or visit the nearest National Insurance office.

Q10. Can I cancel my car insurance policy?

Yes, you can cancel your policy by submitting a written request and returning the original policy document, provided there are no active claims.

Conclusion

National Insurance Car Insurance is a dependable and affordable choice for car owners seeking reliable protection. Backed by government trust, extensive coverage, and strong customer service, it ensures that your vehicle—and your peace of mind—remain safeguarded against life’s uncertainties. Whether you are a new car owner or renewing an existing policy, National Insurance provides the perfect blend of comprehensive coverage, flexibility, and affordability.