Page 189 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Own damage premium :
Zone of registration of the vehicle- Zone 1-major 8
cities Zone B Rest of India
Cubic Capacity- a) below 1000cc b) 1000 to 1500 cc
and c) over 1500 cc

Age of the vehicle- i) below 5 years ii) 5 to 10 years
iii) over 10 years

From the table given the rate is ascertained and
applied to the IDV. This became the Basic OD
premium. To this the add-on for additional items were
included and shown separately. Example for Bi-fule
Kit @ 4% on the value was added. So also for
electronic fittings a similar rate is added.

Thereafter the discounts are allowed on reducing
balance i.e. the Total premium as above was
discounted for each discount head individually. The
last discount was always the NCB.

Third Party Premium:
The TP premium is based on Zone and cubic capacity.
In the case of private car no additional premium is
charged for passenger Liability, hence nothing under
this head would be charged. All add-ons like Liability
for driver, PA to owner-driver, PA to passengers
would be charged. The total premium would comprise

Sashi Publications - www.sashipublications.com 189

Copyright@ The Insurance Times. 09883398055 / 09883380339