nia vs icici

Compare ICICI Lombard vs. NIA: Pricing, Coverage, and Benefits

Comparison: ICICI Lombard vs. New India Assurance

ICICI Lombard Auto Insurance

The comparison between ICICI Lombard Auto Insurance and New India Assurance is based on various variables, including pricing, product portfolio, customer service, best coverage, appropriateness, and claim settlement ratio. When purchasing auto insurance, you should look for a policy with a high benefit level and a low cost.

New India Assurance

The Motor Vehicles Act of 1988 mandates that all owners of vehicles operating on public roads get insurance coverage for the amount that the owner may be held legally responsible for compensating third persons for accidental death, bodily injury, or property damage. As evidence of this insurance, a Certificate of Insurance needs to be kept in the car.

Types of Covers:

  • Liability Only Policy: This includes property damage, death, and/or physical injury liability for third parties. Additionally included is owner-driver personal accident insurance.
  • Package Policy: This covers the insured vehicle against loss or damage in addition to the liability-only policy. Renewing a policy can result in no-claim discounts that range from 20% to 50%, depending on the kind of vehicle and the number of years without a claim.


  • Liability Only Policy: The following types of legal liabilities are covered by the policy for the vehicle owner:
    • Death or Bodily injury to a third party person
    • Damage to third party property

    For commercial vehicles and individual vehicles, liability is covered for INR 7.5 lacs and INR 1 lakh, respectively, for death, injury, and damage to third-party property.

  • Package Policy: This policy covers loss or damage to the insured vehicle and its accessories in addition to liability coverage because of:
    • Fire, explosion, self – ignition or lightening
    • Burglary, housebreaking or theft
    • Riot and Strike
    • Malicious Act
    • Terrorist Act
    • Earthquake Damage
    • Accidental external means
    • By landslide/rockslide

    In addition, the policy covers the cost of towing scooters, motorcycles, and cars up to a maximum of INR 300 for scooters and motorcycles and INR 1,500 for cars and commercial vehicles from the scene of the accident to the workshop. Higher towing costs are also an option, but they will require an additional premium.

In addition to the mandatory coverage provided by the Liability Only Policy, there is a restricted cover that exclusively covers the risk of theft and/or fire. But in the case of cars rated under Class D, Tariff for Miscellaneous and Special Types of cars, the same is not possible.

Rating Factors and Sum Insured Selection

Rating Factors

Rating depends upon the following factors:

  • IDV
  • Cubic capacity
  • Geographical zone
  • Age of the vehicle
  • GVW of in case of commercial vehicles
  • Add-on covers

How to select the sum insured?

IDV – IDV stands for Insured’s Declared Value and represents the sum insured of a vehicle in a Motor Policy…

Claim Settlement Ratio 85.35%
Network Garages 3000+
  • Third Party Liability Coverage
  • Personal Accident Coverage
  • 24*7 Emergency Assistance
Coverages & Discounts
  • No Claim Bonus
  • Voluntary Discounts
  • Automobile Association Membership
  • Anti-Theft Device

ICICI Lombard Car Insurance

When your vehicle is destroyed in an accident or other natural disaster, having vehicle insurance, sometimes referred to as auto insurance, helps you save money. It also protects your car from burglary and theft…


With the Pay As You Drive add-on, your auto insurance rates will be reduced…

ICICI Lombard Car Insurance

Why Should You Buy Car Insurance Online from ICICI Lombard?

Some of the primary characteristics of our private vehicle package insurance coverage include reasonable prices, simple renewal procedures, and speedy claim resolution…

Claim Settlement Ratio 76.53%
Network Garages 9700+
  • Third Party Liability Coverage
  • Personal Accident Coverage
  • 24*7 Emergency Assistance
  • Passenger Personal Accident Cover: With Rs. 100 per person the passenger personal accident cover offers a sum insured of Rs. 2,00,000 for each of the occupants.
  • Legal liability for Paid driver: Liability cover with a premium of Rs. 50/annually for the paid – driver
Coverages & Discounts
  • No Claim Bonus
  • Voluntary Discounts
  • Automobile Association Membership
  • Anti-theft Device

Frequently Asked Questions (FAQs)

Q1. What is the significance of IDV in auto insurance, and how is it calculated?

Answer: Insured’s Declared Value (IDV) is crucial in determining the sum insured for a vehicle. It represents the vehicle’s current market value, and the claim amount in case of theft or total damage is based on this value. The IDV is calculated using the manufacturer’s listed selling price adjusted for depreciation. For vehicles older than five years or out-of-production models, the IDV is determined through an agreement between the insured and the insurer.

Q2. What are the key differences between New India Assurance’s Liability Only Policy and Package Policy?

Answer: New India Assurance offers a Liability Only Policy covering third-party liabilities and owner-driver personal accident insurance. The Package Policy, in addition to liability coverage, protects the insured vehicle against loss or damage due to various factors like fire, theft, riot, terrorism, and accidental external means. The policyholder can also opt for higher towing coverage with an additional premium.

Q3. What is the significance of the Pay As You Drive add-on in ICICI Lombard Car Insurance?

Answer:The Pay As You Drive add-on is designed to lower auto insurance rates for individuals who drive less frequently. This usage-based insurance allows policyholders to pay lower premiums if they drive fewer kilometers. Plans with specific mileage limits are available, and additional kilometers can be added for the policy year if needed.

Q4. How does the claim settlement ratio impact the choice between ICICI Lombard and New India Assurance?

Answer: The claim settlement ratio is a key factor in evaluating the insurer’s reliability. New India Assurance has a claim settlement ratio of 85.35%, while ICICI Lombard’s ratio is 76.53%. A higher ratio indicates better efficiency in settling claims. Policyholders may consider this when choosing between the two insurers.

Q5. What additional benefits does ICICI Lombard offer through special supplemental coverage?

Answer: ICICI Lombard provides special supplemental coverage at an additional cost, enhancing the auto insurance policy. These add-ons can save money on repairs and may include features such as digital surveys for quick claim processing, pick-up and drop services, high-touch point sanitization, a dedicated customer care manager, and quality control on repairs.

Q6. Can you explain the factors influencing the rating of auto insurance policies according to New India Assurance?

Answer: New India Assurance considers various factors for rating, including IDV, cubic capacity, geographical zone, age of the vehicle, GVW for commercial vehicles, and the inclusion of add-on covers. These factors collectively determine the premium amount for the insurance policy, and policyholders should carefully assess these variables when selecting the sum insured.

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