As per the Indian Motor Vehicles Act, 1988, it is mandatory for the owner of every vehicle, including a two-wheeler, to insure it against third-party risks and liabilities. In case individuals operate their two-wheelers on roads without a valid third-party cover, it will be considered a punishable offense.
When it comes to purchasing two-wheeler insurance, New India Assurance and National Insurance are two of the most reliable and trustworthy public sector insurance providers in India. Though the process of purchasing two-wheeler insurance from New India Assurance and National Insurance is quite simple and time-saving, many people can make the mistake of not making a wise choice, resulting in insufficient coverage at the time of need and even rejection of claims.
Therefore, in case there is confusion between the two bike insurance products, this post will help you in making a smart buying decision since it highlights some of the most crucial aspects in comparing both of them.
Point-By-Point Comparison Between New India Assurance Two-Wheeler Insurance & National Two-Wheeler Insurance
|Parameters||New India Assurance Two-Wheeler Insurance||National Two-Wheeler Insurance|
|Incurred Claim Ratio (Motor Insurance)||91% (FY 2021-22)||90.68% (FY 2021-22)|
|Types Of Cover|
|Towing Charges||Up To Rs. 300|
|Fire & Explosion||Covered|
|Theft & Burglary Cover||Covered|
|Malicious & Terrorist Act||Covered|
|Accidental External Means||Covered|
About New India Assurance Two-Wheeler Insurance
The two-wheeler insurance from New India Assurance is designed to offer protection to the insured two-wheeler against accidental damages as well as third-party liabilities. The insurer offers two very competitive ranges/types of two-wheeler insurance as compared to other bike insurance products available in the market.
New India Assurance Two-Wheeler Insurance is available with maximum benefits and affordable premiums. The product also has a few unique add-ons to enhance the coverage and provide the insured bike with 360-degree protection.
About National Two-Wheeler Insurance
The two-wheeler insurance from National Insurance is a type of motor insurance that offers comprehensive cover against third-party damages/losses and standalone own damages. Being one of the largest and oldest general insurance providers in India, National Insurance focuses on offering its two-wheeler insurance with tailor-made coverage and affordable premiums.
In addition, the renewal process of National Two-Wheeler Insurance is quite fast, especially when done online. The customers just need to enter their policy numbers, pay the premiums, and their two-wheeler insurance will be renewed instantly. Similarly, the insurer also offers quick claim settlement to the individuals who have purchased the two-wheeler products, which is otherwise delayed by many two-wheeler insurance providers.
Reasons To Go For New India Assurance Two-Wheeler Insurance
Some of the reasons for choosing the two-wheeler insurance from New India Assurance are highlighted below:
Two Types Of Cover:
Under the two-wheeler insurance by New India Assurance, two types of coverage are available. They are as follows:
This includes property damage, death, and/or physical injury liability for third parties. The owner-driver personal accident insurance is also included.
This covers the insured vehicle against loss or damage in addition to the liability-only cover.
Unique Add-On Benefits:
For an extra premium, New India Assurance Two-Wheeler Insurance provides a distinctive selection of add-on benefits to enhance its two-wheeler insurance coverage. They are listed below:
Personal Accident Cover:
This cover is for owner/driver and pillion riders. It offers additional coverage for bodily injury, death, or disability of the owner/rider and the pillion riders.
Legal Liabilities to Employees:
This cover offers coverage against legal liabilities to employees (paid riders) arising out of the accident involving the insured two-wheeler.
Cover for Loss/Damage to Accessories:
Be it electrical or non-electrical accessories of the insured two-wheeler, this add-on cover will take care of damages that happened to them.
Legal Liability Cover for Non-Fare Paying Passengers in Commercial Vehicles:
In case there is a legal liability for death or bodily injury of the non-fare paying passengers/riders (these are people who are allowed to take two-wheeler rides for free), the add-on cover will offer coverage under the ‘Endorsement IMT-37’ of the ‘Indian Motor Tariff’.
Ideal Incurred Claim Ratio:
ICR is a benchmark technique used to measure the efficacy of an insurer. Technically speaking, it’s the proportion of net premiums received by the insurer during a fiscal year to net claims payments made. The ratio, which indicates how quickly and efficiently an insurer resolves claims, should be between 50% and 100%.
As per the recent IRDAI data, the New India Assurance’s ICR for motor insurance claims in the 2021–2022 fiscal year was a staggering 91%. This means that New India Assurance does not owe more money on premiums than it has paid out on motor claims (including two-wheeler claims) because the ICR is not less than 50%. Additionally, the ratio demonstrates that the likelihood of filing a claim is maximum when someone purchases the two-wheeler insurance from the business.
The insurer also offers a towing facility to the customers for moving their two-wheelers from the place of the accident to a nearby workshop. For this, the insurer offers coverage up to a maximum of Rs. 300. Moreover, one can also get a higher towing charge by paying an extra premium.
Easy Accessibility With Wider Presence:
The insurer boasts its vast network of more than 1800 offices present across the nation. Since two-wheeler insurance needs can vary from region to region, the insurer’s offices are full of experienced professionals who can offer tailored and adequate two-wheeler insurance products to meet the unique needs of insurance-seekers.
Moreover, the insurer holds a strong presence in 25 countries, with which one can be confident that they can access the best two-wheeler insurance products and services even though they are located outside India.
Since the New India Assurance has been offering reliable insurance products for more than 103 years, the insurer has earned a strong reputation in the insurance sector. If insurance seekers purchase two-wheeler insurance by New India Assurance, they can rest assured of adequate coverage, a hassle-free purchasing process, and seamless claim settlements, which are the epitomes of the insurer’s commitment to offer great customer satisfaction.
Reasons To Go For National Two-Wheeler Insurance
Some of the reasons for selecting two-wheeler insurance by National Insurance are highlighted below:
Easy Issuance & Renewal:
One can purchase two-wheeler insurance from National Insurance instantly from the insurer’s official website. Just enter the relevant details, submit all the necessary documents, pay the premium, and everything is done. The policy document will be sent by the insurance provider to the insured’s registered mail address.
Similarly, the renewal process can be completed in a few simple steps. Fill in the details like policy number, and make the payment for renewal, and the renewal details will be sent to the insured’s mail address.
Two Coverage Types:
The two-wheeler product offers two types of coverage as discussed below:
Liability Only Cover:
Under this cover, the following types of legal liabilities are covered for the vehicle owner:
- The demise or physical harm inflicted against a third party.
- Harm to the property of a third party.
Under this, the loss/damage to the insured two-wheeler and its accessories along with liability coverage will be covered.
Great ICR Ratio:
ICR is a benchmarking method that’s used to assess an insurer’s effectiveness in performance. In technical terms, it’s the ratio of net premiums paid to net claims paid by the insurer over the course of a fiscal year. The ratio, which shows how fast and effectively an insurer handles claims, should be in the range of 50% and 100%.
National Insurance’s ICR for motor insurance claims in the 2021–2022 fiscal year was an astounding 90.68%, according to current IRDAI data. Because the ICR is not less than 50%, National Insurance does not owe more money on premiums than it has paid out on motor claims, including two-wheeler claims. Furthermore, the ratio shows that when someone buys the two-wheeler insurance from the National Insurance, their chances of filing a claim are at their highest.
In case the policyholders do not claim against their two-wheeler insurance by National Insurance, they are subjected to receive NCB (No Claim Bonus) benefits upon renewal. These savings range from 20% to 50%, depending on the number of years without a claim.
Customers can also enhance their National Two-Wheeler Insurance by selecting any of the following add-on riders. These riders are available at an extra premium amount.
- Nil Depreciation
- Nil Depreciation Plus
- Invoice Protect
- Engine Protect
- NCB Protect
In order to transport policyholders’ two-wheelers from the scene of the accident to a nearby workshop, the National Two-Wheeler Insurance also provides towing services. The insurer provides coverage for this up to a maximum of Rs. 300. A higher towing charge can also be obtained by paying an additional premium.
Deciding Between New India Assurance Two-Wheeler Insurance & National Two-Wheeler Insurance
Both products have their own sets of advantages and disadvantages. While New India Assurance Two-Wheeler Insurance comes with extremely hassle-free claim settlement records, a dedicated customer support team, unique add-on covers, and customized features; National Two-Wheeler Insurance, on the other hand, boasts its quick renewal and purchase process, faster claim settlements, and affordable premiums.
If you are an insurance seeker who gets excited by unique add-on covers and customization, then you can go for New India Assurance Two-Wheeler Insurance. However, if these elements do not excite you much and you are more interested in quicker processes, then National Two-Wheeler Insurance is an ideal choice for you.
Regardless of the option you select, ensure that the product meets your needs while staying within your budget. Additionally, confirm that you are not jeopardizing the benefits of your two-wheeler insurance coverage in the process of lowering costs. Ultimately, it makes sense to invest money in comprehensive and suitable two-wheeler insurance that can offer all-in-one protection at times of dire need.