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The procedure adopted for calculating the car insurance premiums
Posted on: 08/Jul/2018 11:01:49 AM
In the procedure to calculate the car insurance premiums, several factors are to be considered as listed below.
Insured Declared Value (IDV)
This considers the IDV of the make and model of your car. It changes very year after adjusting the depreciation value of the car.
No Claim Bonus (NCB)
In case you haven`t made any insurance claims in the previous year, you become eligible for NCB.
Discounts or offers
This looks into the aspects of the additional car contains and other items which are not included in the selling price of the car or a part of the manufacturer`s catalogue. The premium for those accessories will be calculated separately.
Age of the car
Even as the new models enter in the business, they reduce the values of the older models.
Geographical location
As for the geographical location of the transaction, our country has been primarily divided into 2 zones zone A and zone B. Zone A covers all major cities of India -Bangalore, Ahmadabad, Chennai, Mumbai, Kolkata, Pune, and New Delhi. Zone B is the rest of the country. As major cities are covered under zone A, the accident risk is considered to be high. Hence, the insurance premium is higher than in Zone B.
Add-ons
Some of the faculties, such as roadside assistance, lock and key replacement and loss of personal belongings will add to the insurance premium cost.
Old cars
As regards the old cars, the premium is arrived at as per the mutual discussion between the insurer and customer. This applies to cars which are more than 5 years old.
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