How is the Premium Calculated under a Motor Insurance Policy?
The premium rating is based on the following factors:
A. Insured declared value of the vehicle (idv)
B. Cubic capacity
C. Geographical zones
D. Age of the vehicle
Rating factor for own damage premium is provided separately:
- Age of the vehicle
- Not exceeding 5yrs
- Exceeding 5yrs but not exceeding 10yrs
- Exceeding 10yrs
- Cubic capacity
- Not exceeding 1000cc
- Exceeding 1000cc but not exceeding 1500cc
- Exceeding 1500cc
- Geographical zone (private cars & two wheeler)
- Zone a - mumbai, pune, new delhi, bangalore, hyderabad, kolkata, bangalore & chennai
- Zone b - rest of india
- Insured declared value (IDV): current market value - depreciation
Depreciation rates:
|
Age of vehicle |
Depreciation rate |
|
Not exceeding 6 months |
5% |
|
6 months to 1 year |
15% |
|
1 years to 2 years |
20% |
|
2 years to 3 years |
30% |
|
3 years to 4 years |
40% |
|
4 years to 5 years |
50% |
Additional premium:
- Electrical/ electronics fittings
- Use of cng/ lpg fuel
- Fibre glass fuel tanks
Premium will be charged as per the below slab:
|
Coverage |
Premium rate |
|
Electronic accessories |
4% |
|
Cng/ lpg kit |
External - 4% + rs. 60 (in liability) |
|
Fiber glass fuel |
Rs. 50/- |
Premium rates for personal accident cover & liabilities
|
Type of cover |
Premium |
|
Owner driver pa cover - private car |
Rs. 100 |
|
Pa cover for passenger - private car |
Rs. 50 per passenger |
|
Legal liability for paid driver |
Rs. 50 |
|
Liability for employees - private car |
Rs. 50 |
|
Geographical area extension |
Rs. 500 |
Discounts applicable under the motor insurance policy:
Discounts applicable on the premium as given below:
|
All type of vehicles |
Discount per cent |
|---|---|
|
No claim made or pending during preceding full year of insurance |
20% |
|
No claim made or pending during preceding 2 consecutive years |
25% |
|
No claim made or pending during preceding 3 consecutive years |
35% |
|
No claim made or pending during preceding 4 consecutive years |
45% |
|
No claim made or pending during preceding 5 consecutive years |
50% |
Voluntary discounts:
Discount is given for opting extra deductibles over and above the compulsory deductible.
Private cars
Deductible (from claim amount) 2500 5000 7500 15000
Discount % 20 25 30 35
Max discount (Rs.) 750 1500 2000 2500
Two wheelers
Deductible (from claim amount) 500 750 1000 3000
Discount % 5 10 20 25
Max discount (Rs.) 50 75 125 250
Premium rates for third party liability:
Private vehicles:
Cubic capacity rate
Up to 1000cc Rs 1468
Between 1000cc to 1500cc Rs 1598
Above 1000cc Rs 4931
Two wheelers:
Cubic capacity rate
Up to 75cc Rs 519
Between 75cc to 150cc Rs 538
Between 150cc to 350cc Rs 554
Above 350cc Rs 884
