Own Damage : The premium for OD cover is calculated as a percentage of IDV as decided by the Indian Motor Tariff. Thus, formula to calculate OD premium amount is: Own Damage premium = IDV X [Premium Rate (decided by insurer)] + [Add-Ons (eg. bonus coverage)] – [Discount & benefits (no claim bonus, theft discount, etc.)
Example :
Vehicle Type : Private Car
IDV : 10,00,000.00
CC : 1196
Age : 4 Year
Seating Capacity : 5 Seater
Registration : Delhi
No Claim Bonus : 20%
Discount Offered : 30%
Rate Applicable : 3.283% as per IRDAI Tariff
Part - I (Own Damage)
Now Basic OD: 10,00,000 X 3.283% = 32830
Less discount offered by Insurer :32,830 - 9,849(32,830X30%) = 22,981
Less No Claim Bonus: 22,981-4,596= 18,385 (Final Own Damage)
Liability Insurance: purchased by an insured (the first party) from an insurer (the second party) for protection against the claims of another (the third) party. The firstparty is responsible for its own damages or losses whether caused by itself or thethird party.
Part - II (Liability Section)
Third Party Liability : 2,863 (Mandatory)
Personal Accident Cover for Un-named Passenger :250 (50X5 as per seating Capacity covering Rs.1 Lac accidental cover for each passenger upto 5 passenger. It is an optional cover. Here we have charged Rs.5 for per 10,000. PA cover can be opted upto Rs.2 Lac)
Legal Liability to Paid Driver : 50 (Mandatory) - It covers owners liability towards his employee as Workmen's Compensation Act
Personal Accidental Cover for Owner Driver : 750 (Mandatory in Case of Vehicle registered on Individual Persons name)
Final Liability Premium : 2,863+250+50+750=3,913
Net Premium = 18,385+3,913=22,298 (Part-I + Part -II)
Final Premium Payable = 22,298+ Applicable Tax
Example :
Vehicle Type : Private Car
IDV : 10,00,000.00
CC : 1196
Age : 4 Year
Seating Capacity : 5 Seater
Registration : Delhi
No Claim Bonus : 20%
Discount Offered : 30%
Rate Applicable : 3.283% as per IRDAI Tariff
Part - I (Own Damage)
Now Basic OD: 10,00,000 X 3.283% = 32830
Less discount offered by Insurer :32,830 - 9,849(32,830X30%) = 22,981
Less No Claim Bonus: 22,981-4,596= 18,385 (Final Own Damage)
Liability Insurance: purchased by an insured (the first party) from an insurer (the second party) for protection against the claims of another (the third) party. The firstparty is responsible for its own damages or losses whether caused by itself or thethird party.
Part - II (Liability Section)
Third Party Liability : 2,863 (Mandatory)
Personal Accident Cover for Un-named Passenger :250 (50X5 as per seating Capacity covering Rs.1 Lac accidental cover for each passenger upto 5 passenger. It is an optional cover. Here we have charged Rs.5 for per 10,000. PA cover can be opted upto Rs.2 Lac)
Legal Liability to Paid Driver : 50 (Mandatory) - It covers owners liability towards his employee as Workmen's Compensation Act
Personal Accidental Cover for Owner Driver : 750 (Mandatory in Case of Vehicle registered on Individual Persons name)
Final Liability Premium : 2,863+250+50+750=3,913
Net Premium = 18,385+3,913=22,298 (Part-I + Part -II)
Final Premium Payable = 22,298+ Applicable Tax
