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Insurance is the equitable transfer of the risk of a loss, from one entity to another
in exchange for payment. It is a form of risk management primarily used to hedge
against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a
company selling the insurance; the insured, or policyholder, is the person or entity
buying the insurance policy. The amount to be charged for a certain amount of
insurance coverage is called the premium. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study and
practice. The transaction involves the insured assuming a guaranteed and known
relatively small loss in the form of payment to the insurer in exchange for the
insurer's promise to compensate (indemnify) the insured in the case of a financial
(personal) loss. The insured receives a contract, called the insurance policy, which
details the conditions and circumstances under which the insured will be
financially compensated. The Life is full of uncertainties. People opt for insurance
purely for the reasons of uncertainties in life. Insurance gives the insured a kind
of peace of mind as he is assured to making up the loss in the event of such
uncertainties in life happen.

The New India Assurance Co. Ltd., based in Mumbai, is one of the five public
sector insurance companies in India. It is the "largest general insurance company of
India on the basis of gross premium collection inclusive of foreign operations". It
was founded by Dorab Tata in 1919, and nationalized in 1973. Previously it was a
subsidiary of the General Insurance Corporation of India (GIC). But when GIC
became a reinsurance company as per the IRDA Act 1999, its four primary
insurance subsidiaries New India Assurance, United India Insurance, Oriental
Insurance and National Insurance got autonomy.
New India Assurance provides Marine Insurance Policy as well as the shipping
Cargo policy which helps to recover the damage to the ships and the goods during
the travel from origin to the destination. This policy covers goods, freight and other
interests against loss or damage to goods whilst being transported by rail, road, sea
and/or air.

i) To determine and analyze the Market Potential of the New India Assurance Co.
ii) To determine whether the customers are satisfied with the auto insurance
policies of the company.
iii) To know the customer awareness regarding the New India Assurance Co. Ltd
and its products.
iv) To study and determine the competitor position in the market.
v) To know the future plans of the people for buying the auto insurance policies.

Though this study is purely explorative in nature, it is brought with a number of
limitations. The most outstanding among them could be listed as follows.
i) Adequate secondary data are not available regarding financial aspects of
New India Assurance Co. Ltd.
ii) This study concentrates more on the role and performance of New India
Assurance Co. Ltd without considering the role played by the company in
life insurance sector.
iii) This study does not analyze the problems faced by the customers.
iv) Study of primary data is not available.


who are exposed to similar risk. from one entity to another in exchange for payment. An insurer. businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate. for the losses of some of those who have participated in the scheme. Risk management. is the person or entity buying the insurance policy. or policyholder.0 Insurance is the equitable transfer of the risk of a loss. We say "significant" because if the potential loss is small. participate in the scheme and contribute in the shape of periodic premiums. Insurance allows individuals. Insurance is a technique wherein a number of people. you would not pay a monthly premium to protect against a $50 loss because this would not be considered a financial hardship for most. It is a form of risk management primarily used to hedge against the risk of a contingent. the practice of appraising and controlling risk. then it doesn't make sense to pay a premium to protect against the loss. Such premiums are received by the insurer who is able to pay out of the premiums received by him. is a company selling the insurance. called the insurance policy. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. or insurance carrier. uncertain loss. the insured. Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as premium. . The insured receives a contract. The amount to be charged for a certain amount of insurance coverage is called the premium. which details the conditions and circumstances under which the insured will be financially compensated. Thus it is wonderful technique of spreading and transfer or risks. After all. has evolved as a discrete field of study and practice.

fire.Everyone that wants to protect themselves or someone else against financial hardship should consider insurance. flood and other hazards  Protecting yourself against lawsuits  Protecting yourself in the event of disability  Protecting your car against theft or losses incurred because of accidents  And many more . This may include:  Protecting family after one's death from loss of income  Ensuring debt repayment after death  Covering contingent liabilities  Protecting against the death of a key employee or person in your business  Buying out a partner or co-shareholder after his or her death  Protecting your business from business interruption and loss of income  Protecting yourself against unforeseeable health expenses  Protecting your home against theft.

Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. If a merchant received a loan to fund his shipment.. and practiced by early Mediterranean sailing merchants. . early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC. The Babylonians developed a system which was recorded in the famous Code of Hammurabi. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.HISTORY OF INSURANCE Turning to insurance in the modern sense (i. 1750 BC. The business of life insurance in India in its existing form started in India in the year1818 with the establishment of the Oriental Life Insurance Company in Calcutta. he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea. respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. c. insurance in a modern money economy.e. in which insurance is part of the financial sphere).

the first general insurance company established in the year 1850 in Calcutta by the British. GIC incorporated as a company. the Oriental Insurance Company Ltd. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. The General insurance business in India. the National Insurance Company Ltd. and the United India Insurance Company Ltd. 5 crore from the Government of India. viz. 1956. LIC Act. can trace its roots to the Triton Insurance Company Ltd. frames a code of conduct for ensuring fair conduct and sound business practices. the New India Assurance Company Ltd. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd.1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.with a capital contribution of Rs. 107 insurers amalgamated and grouped into four companies’ viz. the first company to transact all classes of general insurance business.. 1972: The General Insurance Business (Nationalization) Act. . 1957: General Insurance Council. set up. LIC formed by an Act of Parliament. on the other hand. 1972 nationalized the general insurance business in India with effect from 1st January 1973... a wing of the Insurance Association of India.

The insured entities are therefore protected from risk for a fee. with the fee being dependent upon the frequency and severity of the event occurring. but individual entities can also self-insure through saving money for possible future losses. . the risk insured against must meet certain characteristics in order to be an insurable risk. In order to be insurable.3 PRINCIPLES OF INSURANCE Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. Insurance is a commercial enterprise and a major part of the financial services industry.

falsified or presented in a wrong manner by the insured. In simple words. protection and compensation given against damage.  Principle Of Indemnity Indemnity means security. legally revoked or cancelled) if any facts.  Insurable Interest The principle of insurable interest states that the person getting insured must have insurable interest in the object of insurance. The insurer's liability gets void (i. hidden.e. According to this principle. an insurance contract is signed only for getting protection against unpredicted financial losses arising due to future uncertainties. he will not have an insurable interest left in that taxicab.e. loss or injury. the insured person must suffer some financial loss by the damage of the insured object.The owner of a taxicab has insurable interest in the taxicab because he is getting income from it. Utmost Good Faith Principle of Utmost Good Faith is a very basic and first primary principle of insurance. According to the principle of indemnity. insurer and insured) in an absolute good faith or belief or trust. A person has an insurable interest when the physical existence of the insured object gives him some gain but its nonexistence will give him a loss. The person getting insured must willingly disclose and surrender to the insurer his complete true information regarding the subject matter of insurance. the insurance contract must be signed by both parties (i. But. about the subject matter of insurance are either omitted. if he sells it. Insurance contract is not made for making profit else its sole purpose . For example: .

the insured can claim the compensation only to the extent of actual loss either from all insurers or from any one insurer. Thus. the amount of compensations paid is in proportion to the incurred losses. The amount of compensations is limited to the amount assured or the actual losses. The compensation must not be less or more than the actual damage. This principle is applicable only when the damaged property has any value after the event causing . if the insured has taken out more than one policy on the same subject matter. in case of life insurance. Compensation is not paid if the specified loss does not happen due to a particular reason during a specific time period.  Principle Of Subrogation Subrogation means substituting one creditor for another. According to this principle. whichever is less. then the ownership right of such property shifts to the insurer. If one insurer pays full compensation then that insurer can claim proportionate claim from the other insurers. Principle of Subrogation is an extension and another corollary of the principle of indemnity. It applies to all contracts of indemnity. the principle of indemnity does not apply because the value of human life cannot be measured in terms of money. However. According to the principle of to give compensation in case of any damage or loss. insurance is only for giving protection against losses and not for making profit. when the insured is compensated for the losses due to damage to his insured property. It also applies to all contracts of indemnity. In an insurance contract.  Principle Of Contribution Principle of Contribution is a corollary of the principle of indemnity.

The nearest cause of damage is sea water which is insured and therefore the insurer must pay the compensation.A cargo ship's base was punctured due to rats and so sea water entered and cargo was damaged. The insured must not neglect and behave irresponsibly during such events just because the property is insured.  Principle Of Causa Proxima Principle of Causa Proxima (a Latin phrase). Here there are two causes for the damage of the cargo ship . or in simple English words. The risk of sea water is insured but the first cause is not. etc. The principle states that to find out whether the insurer is liable for the loss or not. The insurer can benefit out of subrogation rights only to the extent of the amount he has paid to the insured as compensation. in case of uncertain events like a fire outbreak or blast. insured must always try his level best to minimize the loss of his insured property.  Principle Of Loss Minimization According to the Principle of Loss Minimization.the damage. the Principle of Proximate (i. and (ii) The sea water entering ship through puncture. .e. the proximate (closest) and not the remote (farest) must be looked into. The insured must take all possible measures and necessary steps to control and reduce the losses in such a scenario. Nearest) Cause. means when a loss is caused by more than one causes. Hence it is a responsibility of the insured to protect his insured property and avoid further losses. the proximate or the nearest or the closest cause should be taken into consideration to decide the liability of the insurer. For example: .(i) The cargo ship getting punctured because of rats.

the principle of Causa Proxima does not apply.However. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. Annuities provide a stream of payments and . Whatever may be the reason of death (whether a natural death or an unnatural death) the insurer is liable to pay the amount of insurance. funeral and other final expenses. burial. TYPES OF INSURANCE 1. and may specifically provide for income to an insured person's family. in case of life insurance. Life Insurance Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary.

General insurance can be classified as follows:  Fire Insurance Fire insurance provides protection against damage to property caused by accidents due to fire. Recently. and require the same kinds of actuarial and investment management expertise that life insurance requires. 2. marine or miscellaneous events as a result of contingencies. General insurance means managing risk against financial loss arising due to fire. which may or may not occur. they are the complement of life insurance and. Some policies. general insurance is normally meant for a shortterm period of twelve months or less. are the mirror image of life insurance. However. Fire insurance is a contract under which the . which may be taken by the insured if the policy is surrendered or which may be borrowed against. in some cases the benefit derived from tax deferral may be offset by a low return. In the US. Certain life insurance contracts accumulate cash values. from an underwriting perspective. In that sense. are financial instruments to accumulate or liquidate wealth when it is needed. General Insurance Also known as non-life insurance. the tax on interest income on life insurance policies and annuities is generally deferred. such as annuities and endowment policies.are generally classified as insurance because they are issued by insurance companies. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. are regulated as insurance. whereby the explosion is caused by boilers not being used for industrial purposes. longer-term insurance agreements have made an entry into the business of general insurance but their term does not exceed five years. lightening or explosion.

Marine Cargo: Marine cargo policy provides protection to the goods loaded on a ship against all perils between the departure and arrival warehouse. Marine Hull: Marine hull policy provides protection against damage to ship caused due to the perils of the sea. The risks which these areas are exposed to are collectively known as "Perils of the Sea". during a specified period. The insurer is liable to make good the actual amount of loss not exceeding the maximum amount fixed under the policy. Therefore. fire.  Marine Insurance Marine insurance basically covers three risk areas. or (iii) contract. A fire insurance policy cannot be assigned without the permission of the insurer because the insured must have insurable interest in the property at the time of contract as well as at the time of loss. . collision etc. cargo and freight. caused by fire. hull. The loss can be ascertained only after the fire has occurred. however. Marine hull policy covers three-fourth of the liability of the hull owner (shipowner) against loss due to collisions at sea. These perils include theft. The insurable interest in goods may arise out on account of (i) ownership. (ii) possession.insurer in return for a consideration (premium) agrees to indemnify the insured for the financial loss which the latter may suffer due to destruction of or damage to property or goods. The remaining 1/4th of the liability is looked after by associations formed by ship-owners for the purpose (P and I clubs). the measure of the loss. which the insured can claim in case of loss. A person with a limited interest in a property or goods may insure them to cover not only his own interest but also the interest of others in them. namely. agreed to by the parties at the time of the contract. marine cargo covers carriage of goods by sea as well as transportation of goods by land. The contract specifies the maximum amount. This amount is not.

If risks against certain specified diseases are also covered.under it. external and visible means. Fire and Marine insurance. Miscellaneous As per the Insurance Act. The risk insured is the bodily injury resulting solely and directly from accident caused by violent. Under . a personal or commercial vehicle is subjected to combined insurance against the risks of :. It covers a variety of risks. engineering insurance etc. In India this type of insurance is done by the General Insurance Corporation. (ii) death of or injury to the owner or passenger of the vehicle due to accident. Miscellaneous Insurance refers to contracts of insurance other than those of Life. health insurance. personal accident insurance. Such a policy is known as 'third party insurance or liability insurance'. A comprehensive insurance policy may be taken to cover all these risks. (iii) damages payable to third parties by the owner of the vehicle for accident. Insurance against the first two types of risks is optional. Some of the examples of general insurance are motor insurance. Motor Vehicle Insurance: . A contract of personal accident insurance is not a contract of indemnity and the insurer has to pay a fixed sum of money on the death or total disablement of the insured or provide medical benefits for recovery from the injury. theft insurance. the chief of which are:Personal Accident insurance: . 1956. money insurance. But every owner of motor vehicle is required to take out an insurance policy to cover the third party risks under the Motor Vehicles Act. all types of general insurance other than fire and marine insurance are covered under miscellaneous insurance.(i) loss or damage to the motor vehicle and its accessories on account of accident or theft. the policy is known as 'Personal Accident and Sickness Insurance.Personal Accident insurance is insurance for individuals or groups of persons against any personal accident or illness.

travel related accidents including injuries. Travel insurance: .Travel insurance provides protection cover to all those individuals travelling outside India against risks such as loss of baggage. notify all changes in the condition of their service. the insurer undertakes to compensate the insured i. who sell goods on credit terms while substantially reducing the overall risk of exposure to non-payment. This policy provides insurance cover to owners of the vehicle. It thus enables a business to take advantage of peak and cyclical selling periods and to safely expand into new product lines or territories.Credit Insurance is a policy taken to cover the loss which may arise due to bad debts or non-payment of dues by the debtors. this insurance policy has become popular among International travelers. dishonesty.such a policy. . In order to avail the protection under it. In India.e. goods or damages to property caused by the employees. Fidelity Insurance: . the employer is required to provide all material facts about their employees to the insurer and also. illnesses and medical emergencies requiring hospitalization treatment.under it. and misappropriation of funds. who have insurable interest in a motor vehicle. It protects them against losses arising out of insolvency of their debtors. It provides protection to businessmen. the employers against the losses suffered by him due to the employees. The losses may be due to fraud. the third party who has suffered any loss can sue the insurer directly even though he was not a party to the contract of insurance. financiers or lessee. Credit Insurance: .

theft claims or third party claims. A compulsory car insurance scheme was first introduced in the United Kingdom with the Road Traffic Act 1930. Auto Insurance in India is a compulsory requirement for all new vehicles used whether for commercial or personal use. They offer their customers instant auto quotes. Driving license copy. There are certain general insurance companies who also offer online insurance service for the vehicle. like duly signed claim form. This meant that injured victims would seldom get any compensation in an accident. There are different types of Auto Insurance in India : . The claims of the Auto Insurance in India can be accidental. The insurance companies have tie-ups with leading automobile manufacturers. This ensured that all vehicle owners and drivers had to be insured for their liability for injury or death to third parties whilst their vehicle was being used on a public road Germany enacted similar legislation in 1939.AUTO INSURANCE Widespread use of the automobile began after the First World War in the cities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. and drivers often faced considerable costs for damage to their car and property. yet there was still no compulsory form of car insurance anywhere in the world. FIR copy. Auto Insurance in India deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. Original estimate and policy copy. Certain documents are required for claiming Auto Insurance in India. RC copy of the vehicle. Cars were relatively fast and dangerous by that stage. Auto premium is determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle.

self ignition. .Private Car Insurance – In the Auto Insurance in India. fire. Commercial Vehicle Insurance – Commercial Vehicle Insurance under the Auto Insurance in India provides cover for all the vehicles which are not used for personal purposes. failure or breakage  When vehicle is used outside the geographical area  War or nuclear perils and drunken driving. loss/damage to electrical/electronic accessories The auto insurance does not include:  Consequential loss. Private Car Insurance is the fastest growing sector as it is compulsory for all the new cars. The auto insurance generally includes:  Loss or damage by accident.  Liability for third party injury/death. make of the vehicle and the place of registration of the vehicle. housebreaking or theft. The amount of premium depends on the make and value of the car. mechanical and electrical breakdown. malicious act. like the Trucks and HMVs. state where the car is registered and the year of manufacture. burglary. Two Wheeler Insurance – The Two Wheeler Insurance under the Auto Insurance in India covers accidental insurance for the drivers of the vehicle. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period. depreciation. third party property and liability to paid driver  On payment of appropriate additional premium. The amount of premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of policy period. external explosion. lightning.

A Certificate of Insurance must be carried in the vehicle as a proof of such insurance. This cover loss or damage to the vehicle insured in addition to (1) above. This covers third party liability for bodily injury liability and / or death and property damage.Highlights This policy covers all types of vehicles plying on public roads such as: Scooters & Motorcycles  Private cars  All types of commercial vehicles  Motor Trade (vehicles in show rooms and garages) As per the Motor Vehicles Act. 1988 it is mandatory for every owner of a vehicle plying on public roads. to cover the amount. to take an insurance policy. 2. which the owner becomes legally liable to pay as damages to third parties as a result of accidental death. Liability only policy. ranging from 20% to 50%. No. Package policy.claim discounts are available on renewal of policy. depending upon the type of vehicle and the number of years for which no claim has been made. Two types of covers are available: 1. . bodily injury or damage to property. Personal Accident cover for Owner-driver is also included.

Scope Liability Only policies: The policy covers the vehicle owner's legal liability to pay compensation for: 1. inland waterway. explosion. Malicious Act. 5. Riot and Strike. 9. Storm. Whilst in transit by road. this policy covers loss or damage to the insured vehicle and its accessories due to: 1. Package Policy In addition to the coverage under liability only. Fire. Earthquake (Fire and Shock) Damage. 4. 6. Liability is covered for an unlimited amount in respect of death or injury and damage to third party property for Rs.7. . Typhoon. 7. 1 lakh for Scooters / Motor Cycles. Cyclone and Hailstorm. Hurricane. 3. Flood. 2. Damage to third party property. Terrorist Act. Tempest.5 lacs under Commercial vehicle and private and Rs. Death or bodily injury to a third party person. Accidental external means. housebreaking or theft. 2. elevator or air. 8. Inundation. lift. Burglary. self-ignition or lightning.

for cars and commercial vehicles. in addition to the compulsory cover granted under "Liability Only Policy". The important exclusions under the policies are:  Wear and tear.  Use of vehicle otherwise than in accordance with `limitations as to use ' (e.1500/.10. Cubic capacity 3. etc.  Claims arising out of contractual liability. IDV. A restricted cover is also available covering the risk of Fire and/or Theft only.for Scooters/Motorcycles and Rs.300/. However the same is not available in case of vehicle ratable under Class D. breakdowns  Consequential loss  Loss when driving with invalid driving license or under the influence of alcohol.g. private car being used as a taxi) Rating factors Rating depends upon the following factors: 1. civil war. Geographical zone .  Loss due to war. Tariff for Miscellaneous and special types of vehicles. 2. By landslide/Rockslide The policy also pays for towing charges from the place of accident to the workshop upto a maximum limit of Rs. It is also permissible to opt for higher towing charges subject to payment of extra premium.

Personal accident cover under private car policies for: o passengers o paid driver 3. airconditioners etc. Who can take the policy? Any vehicle owner whose vehicle is registered in his/her name with the Regional Transport Authority in India. Age of the vehicle 5..D.V. GVW of in case of commercial vehicles 6.4. Loss or damage to accessories fitted in the vehicle such as stereos. Legal liability to non-fare paying passengers in commercial vehicles. fans. . How to select the sum insured? The sum insured of a vehicle in a Motor Policy is referred to as the I. which stands for Insured's declared Value. 4. 2. Legal liability to employees. Add on Covers Add on covers The policy can be extended to cover the following risks on payment of additional premium: 1.

a spot survey. Vehicle will be surveyed by a Surveyor. Salvage of the damaged parts may be required to be deposited with the insurance company after approval of the claim. Lodge an F. In case of theft of the vehicle: 1. 5. In case of a major damage to the vehicle. Claim Form duly filled in to be submitted along with copy of Registration Certificate and driving license of the driver of the vehicle at the time of accident as also estimate of repairs. the following steps should be taken: In case of accidental damage to the vehicle: 1. with the police immediately.In case of theft of vehicle or if the vehicle is totally damaged and beyond repairs in an accident. . 3. appointed by the insurance company. Immediate intimation to the nearest office. which will issue a Claim Form.I. 2. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between insurer and insured.R. Inform the policy issuing office with a copy of FIR. 4. Final bills/cash memos are to be submitted duly signed by the insured. 2. Submit the Final Police Report as soon as it is received. would also be arranged by the company. 3. Top How to claim? In the event of an incident giving rise to a claim under the policy. The IDV of the vehicle is to be fixed on the basis of manufacturer's listed selling price of the brand and model of the vehicle proposed for insurance at the commencement of insurance / renewal and adjusted for depreciation as per schedule. at the site of accident.e. who shall submit his report to the company. IDV of vehicle which is beyond 5 years of age and of obsolete models of the vehicles (i. the claim amount payable will be determined on the basis of the IDV.

After approval of the claim by the company. FIR are to be submitted.4. the same should be sent to the company immediately. For a ‘quick renewal’. Diving License. 5. New India Assurance Car Insurance Renewal Procedure To renew a policy using a login. 3. New India Assurance customers can get their policies renewed by paying their premiums using credit cards. Extend full cooperation to the surveyor and/or investigator appointed by the company. get the Registration Certificate transferred in the name of the company. In case of liability claim: 1. On receipt of summons from Court. Claim Form duly filled in along-with copies of Registration Certificate. Inform insurance company immediately of any incident likely to give rise to liability claim. . policy holders are required to enter their renewed quote numbers or old policy numbers and customer IDs into the respective fields on the renewal page of the New India Assurance website. Users creating a login will be provided with a user ID and a password and they can complete their renewals using this after logging in. policyholders need to first register their New India Assurance car insurance policies and update their online accounts with all the details relevant to their existing policies. submit a letter of Subrogation and Indemnity on stamp paper duly notarized. 2. hand over the keys of the vehicle. The customer IDs can be got from policy documents or from any branch office. Customers can get these details from the insurer through an automated SMS.

you must invest in a two-wheeler insurance policy. It is our object of admiration. For many of us. the customer is issued a new car insurance policy from New India Assurance instantly. commercial vehicles and vehicles in garages and showrooms. After the premium payment is done online. . Not only is it mandatory in India.debit cards or via net banking. our two-wheeler is a vital part of our life. Only certain New India Assurance insurance products can be renewed using the ‘quick renewal’ process. The New India Assurance’s two-wheeler insurance will guarantee that you are secured when unpredictable events occur.  The covers are categorized into liability only and package policy which makes it even more extensive. With countless benefits like No-Claim Bonus (NCB) ranging up to 50%. source of pride and a symbol of monetary achievement. New India Assurance car insurance policies qualify for a ‘quick renewal’ and do not require a customer to create a login and renew using his online account. Isn’t it upon us to protect our most cherished possessions? To keep your two-wheeler safe and secured. cover against all major risks and a hassle free claims policy. Features and Benefits of the New India Assurance Bike Insurance  This policy comes under the “Motor Policy” umbrella and offers coverage for all types of vehicles including private cars. The New India Assurance Two-wheeler insurance policy is a comprehensive scheme that is provided under the motor policy umbrella. but it also offers financial liability to help you cover the costs of any damage.

they can renew the policy online. explosion  Lightning  Strike and Riot  Burglary.  The New India Assurance also offers add-on covers on payment of extra premium.  Policyholders are guaranteed a hassle-free claims process. No-Claim discounts are offered upon policy renewal and ranges from 20% to 50% which will help the policyholder save on the premium amount. landslide  Damages caused while in transit by inland waterway. flood. Package Policy This type covers the damage or loss to the vehicle or its accessories caused by the following risks:  Fire. self-ignition. road. tempest. air. storm. Here is the list of risks included under each type. New India Assurance 2 Wheeler Insurance Coverage The New India Insurance Motor Policy offers two major categories of covers – Liability only and package policy. hailstorm. theft or housebreaking  Malicious and terrorist acts  Damages caused by earthquake (fire and shock)  Rockslide. Also. cyclone and inundation  Accidental external means . elevator or lift  Calamities including typhoon.

 Damage or loss caused to accessories in vehicle like stereos. NCB ranges from 20% to 50%.  Loss caused by civil war or war  Claims arising out of contractual liability  Use of vehicle which is not accordance with “limitations as to use”. Add-On Covers The following are the additional covers offered by the New India Assurance and the policy can be extended to cover these additional risks on payment of extra premium.g. using a private car as taxi will not be considered.  Legal liability to employees  Legal liability to non-fare paying passengers travelling in commercial vehicles How to file a Claim with the New India Assurance . fan etc.Liability Only Policy Under this policy. wear & tear  Loss or damage caused when driving under the influence of alcohol or with no or invalid driving license. No-Claim Bonus Depending on the type of vehicle and the number of years for which no claim has been made by the insured. for e. cover is offered for the owner’s legal liability to monetarily compensate for the following:  Death or bodily injury caused to a third-party  Damage caused to a third party property New India Assurance Two Wheeler Insurance Exclusions The following risks are not covered under the two-wheeler insurance policy offered by New India Assurance:  Damage caused by breakdowns. No-Claim discounts are offered on policy renewal.

What is the eligibility criteria for obtaining a two-wheeler insurance with NIA? . you must immediately file an F. A spot survey will also be arranged in case of major damage. estimate of repairs and a copy of registration certificate. On receipt of the court summon. Also. you must hand over the vehicle keys. If the vehicle is stolen In case your vehicle is stolen. An investigator and a surveyor will be appointed by the company to assess the loss.  For a Liability Claim The insurance company must be informed of any incident that might give rise to a liability claim.I.  In case of Accidental Damage to the Vehicle Get a claim form which will be provided upon intimation to the nearest office. the same should be sent to insurer. the policyholder will require the documents like:  First Information Report  Vehicle’s Registration Certificate  Driving license of the driver  Bills and estimates of damage Do enquire with the nearest NIA office for a comprehensive list of documents required. FIR. After claim approval.R with the police. the vehicle will be surveyed by an appointed surveyor. You will be required to submit the final police report. Duly signed final cash bills are to be submitted by the insured. Documents Required for Filing a Claim Depending on the type of claim. driving license and the claim form along with copies of registration certificate must be submitted.I. After claim approval. After submission of claim form along with driving license.R for insurer’s reference. get the registration certificate transferred to the company’s name and submit a letter of subrogation and indemnity on a duly notarized stamp paper. New India Assurance bike insurance 1. salvage of the damaged parts might be required to be deposited with the insurer. you must inform the policy issuing office and provide a copy of F.

2. Damage caused by any process of cleaning. restoring. Curios. Lenses. Sports Gear.Sculptures. vermin. by paying extra premium. Geographical zone. Cubic Capacity. Breakage. EXCLUSIONS The Company shall not be liable in respect of :- 1. and similar articles of brittle or fragile nature. IDV or the Insured Declared Value is the sum insured for a vehicle. moth.Any vehicle owner. Cameras. The maximum limit of this towing charge is Rs. add-on covers and GVW for commercial vehicles.. higher towing charges can be opted for. Cracking or Scratching of Crockery. Does this policy cover charges incurred from the place of accident to the workshop? Yes. . Pictures. Musical Instruments. the IDV is essentially an understanding between the insured and the insurer. insects or mildew or any other gradually operating clause. The claim amount is decided based on the IDV. Binoculars.300 for two-wheelers. dyeing or bleaching. Explain the meaning of IDV. who has his/her vehicle registered with the Regional Transport Authority (RTA) of India can apply for a two-wheeler insurance with the New India Assurance. 2. Glass. Also. How is the IDV of my vehicle calculated? The IDV is computed based on the manufacturer’s listed selling price for that particular brand and model of vehicle. 4. Vehicle’s age. unless caused by fire or accident to the means of conveyance. What are the rating factors for a vehicle? The rating is given based on the Insured Declared Value. 5. repairing or renovation or deterioration arising from wear and tear. 3. For vehicles over 5 years and for obsolete models.

Over-winding . Capture. Civil Commotion. 9.Arrests. 10. directly or indirectly caused by or contributed to by or arising from Ionising.Promissory Notes. Consequential loss or legal liability of any kind. Seizure.Insurrection. Military or Usurped Power. Manuscripts. Rebellion. War-like operations. 8. Securities. 11. denting or internal damage of watches and clocks. Bills of Exchange. CONDITIONS SPECIAL . radiation or contamination by radioactivity from any source whatsoever. Deeds. resulting or arising therefrom or any consequential loss and any legal liability of whatsoever nature. windows and other openings securely locked and properly fastened. Business books or documents. Loss or damage whether direct or indirect arising from War. 7. destruction. Theft from any car except car of fully enclosed saloon type having at the time all the doors. Stocks or Share Certificates. damage or Legal Liability directly or indirectly caused by or contributed to by or arising from Nuclear Weapons material. Loss or damage to Money. 5. destruction or damage to any property whatsoever or any loss or expense whatsoever. Stamps and Travel Tickers or Travellers Cheques. Bonds. 6. Restraint and Detainment by the order of any Government or any other authority. (a) Any loss. 4. Hostilities (whether war be declared or not) Civil War. Confiscation. (b) Any loss.3. Loss or damage caused by mechanical or electrical derangement/breakdown of any article unless caused by accidental external means. Any loss or damage arising through delay. Loss or damage due to or contributed to by the Insured having caused or suffered anything to be done whereby the risks hereby insured against were unnecessarily increased. Act of Foreign Enemy. detention or confiscation by Customs or other authorities.

ARTICLES IN PAIRS OR SETS : Where any items insured hereunder consists of articles in pair or set. 2. Steamship Company. 4. Airline.1. of the loss or damage. within 14 days of the date on which the event shall have come to his knowledge. SINGLE ARTICLE LIMIT : Unless specifically and separately stated. . or the Authority in whose care the property vest at the time of the happening of any loss or damage. DUTY OF DISCLOSURE : This Policy shall be void and all premium paid hereon shall be forfeited to the Company in the event of misrepresentation.(b) The Insured shall deliver to the Company. misdescription or nondisclosure of any material fact. NOTICE : Every Notice and communication to the Company required by this Policy shall be in writing to the Office of the Company through which this insurance is effected. REASONABLE CARE : The Insured shall take all reasonable steps to safeguard the property insured against accident. The Insured must also notify the Railways. the Company's liability in respect thereof shall not exceed the value of any particular part or parts which may be lost or damaged without reference to any special value which such article or articles may have as part of such pair or set and not more than a proportionate part of the Insured value of the pair or set. 2. GENERAL 1. loss or damage. the Company's liability in respect of each article or pairs of articles shall not exceed 5% of the total sum Insured under this policy. a detailed statement in writing. with an estimate of the intrinsic value of the property lost and the amount of damage sustained. 3. CLAIMS PROCEDURE : Upon the happening of any event giving rise or likely to give rise to a claim under this Policy :(a) The Insured shall give immediate notice thereof in writing to the nearest office with a copy to the Policy Issuing Office of the Company as well as lodge forthwith a complaint with the Police. Hotel Proprietors.

9. 5. all benefits and rights under the Policy shall be forfeited. INDEMNITY : The Company may reinstate. 8. of the Policy shall be separately subject to this condition. SUBROGATION : The Insured and any claimant under this Policy shall at the expense of the Company do and concur in doing/permit to be/or done all such acts and things that may be necessary or reasonably required by the Company for the purpose of enforcing any rights and remedies or obtaining relief or indemnity from other parties to which the Company shall be or would become entitled or subrogated upon the Company paying for or making good any loss or damage under this Policy whether such acts and things shall be or become necessary or required before or after the Insured's indemnification by the Company. by giving 7 days notice in writing by Recorded Delivery to the Insured at his last known address. 7. if more than one. 6. then the Insured shall be considered as being his own insurer for the difference. and shall bear a ratable proportion of the loss or damage accordingly. assistance and proofs in connection with any claim hereunder and shall. the property in respect of which the payment is made shall belong to the Company. if required. then the Company shall not be liable to pay or contribute more than its ratable proportion of any loss or damage. repair or replace the property lost or damaged. Upon payment of any claim for loss under this Policy. CANCELLATION : The Company may at any time cancel this Policy. FRAUD : If any claim under this Policy shall be in any respect fraudulent or if any fraudulent means or device are used by the Insured or any one acting on the Insured's behalf to obtain any benefit under this Policy. in which case the Company shall return to the Insured a proportion of the last premium corresponding to the unexpired period of Insurance . AVERAGE : If the property hereby insured shall at the time of any loss or damage be collectively of greater value than the sum insured thereon. CONTRIBUTION : If at the time of the happening of any loss or damage covered by this Policy there shall be subsisting any other insurance of any nature whatsoever covering the same property whether effected by the Insured or not. 10.The Insured shall tender to the Company all reasonable information. make an Affidavit or statutory declaration in substantiation of such claim. Every item. instead of paying the amount of the loss or damage. as the case may be.

hypothesis & the limitations of the study. its different policies & important clauses in auto insurance. The fourth chapter is also an analysis chapter which states about the New India Assurance Company Ltd. The fifth chapter is the final chapter which includes required findings & suggestions for the project. claims and eligibility regarding the marine insurance policies. and various types of insurance. 4. 3.FINDINGS 1. During the survey it was observed that major source of information for consumer are television and newspaper and least preference are given to magazines. 2. 6. 5. & different types of marine insurance and services offered by the company and the premiums. The third chapter is the analysis chapter which contains detailed information about auto insurance. the auto insurance products. it contains the objectives. It also has the reviews given by certain authors regarding the general insurance sector and the auto insurance. Introduction chapter explained the overview of the project report. Attractive schemes and brand image are the most important factor that influences the buying behavior of the consumers. 7. the products offered by the company. The second chapter contains about the introduction to insurance. its principles. . agents and friends.

CONCLUSION After completing the project it is concluded that New India assurance Co. many new products (motor insurance. number of agents. according to the requirements of its targeted market or customers and is thus beneficial to its customers in various ways. premium income etc. Ltd has develop its various plans and policies. Therefore it is not only beneficial but better than other insurance companies not only regarding its product but also its services. 588 branches. Mediclaim policy. 397 divisional offices. Ltd has28 regional offices. new business policies. The marine insurance policy provided by the New India Assurance Company Ltd act as a tool for improving the performance of the company for providing the marine insurance policy to its customers satisfying their most of the needs. The most important benefit it provides to its customers is that it is a government owned company. This lead to increase in the satisfaction level of its customer that is why New India assurance Co. flexible in nature. . From the discussion it is evident that general insurance industry expanded tremendously from 1973 onwards in terms of number of offices. Further. 27 direct agent branches and 23 extension counters in the year 2011-2012. etc.) and the insured were provided by the insurers to suit the requirements of various customers.