Voltage instability is a serious phenomenon that can occur in a power system because of critical or stressed conditions. To prevent voltage collapse caused by such instability, accurate voltage collapse prediction is necessary for power system planning and operation. This paper proposes a novel collapse prediction index (NCPI) to assess the voltage stability conditions of the power system and the critical conditions of lines. The effectiveness and applicability of the proposed index are investigated on the IEEE 30-bus and IEEE 118-bus systems and compared with the well-known existing indices (Lmn, FVSI, LQP, NLSI, and VSLI) under several power system operations to validate its practicability and versatility. The study also presents the sensitivity assumptions of existing indices and analyzes their impact on voltage collapse prediction. The application results under intensive case studies prove that the proposed index NCPI adapts to several operating power conditions. The results show the superiority of the proposed index in accurately estimating the maximum load-ability and predicting the critical lines, weak buses, and weak areas in medium and large networks during various power load operations and contingencies. A line interruption or generation unit outage in a power system can also lead to voltage collapse, and this is a contingency in the power system. Line and generation unit outage contingencies are examined to identify the lines and generators that significantly impact system stability in the event of an outage. The contingencies are also ranked to identify the most severe outages that significantly cause voltage collapse because of the outage of line or generator.