FAQ - Motor Insurance

Q.
How is the Premium Calculated under a Motor Insurance Policy?
Ans

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:

  1. Age of the vehicle 
    1. Not Exceeding 5yrs
    2. Exceeding 5yrs but not exceeding 10yrs
    3. Exceeding 10yrs
  2. Cubic Capacity
    1. Not exceeding 1000CC
    2. Exceeding 1000cc but not exceeding 1500cc
    3. Exceeding 1500cc
  3. Geographical Zone (Private Cars & Two Wheeler)
    1. Zone A - Mumbai, Pune, New Delhi, Bangalore, Hyderabad, Kolkata, Bangalore & Chennai
    2. Zone B - Rest of India
  4. 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:

  1. Electrical/ Electronics Fittings
  2. Use of CNG/ LPG Fuel
  3. 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:

No Claim Bonus

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

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