MOTOR INSURANCE

S.V.SUBRAMONIAN

Types Of Motor Insurance

Motor Insurance

Private Cars

Two Wheelers

Commercial Vehicles

Misc Type Vehicles

TYPES OF LOSSES
TYPES OF LOSSES

OWN DAMAGE
Loss or Damage to the
insured vehicle

LIABILITY
Loss or Damage to Third
Party

Types Of Covers

Liability Only Cover (Third Party Only)

Comprehensive Cover (Own Damage +

Third Party)
Fire & Liability Cover
Theft & Liability Cover
Fire, Theft & Liability Cover

Own Damage Cover

Provides coverage for any Damage or loss to
insured vehicle caused by
Accidental External means
Fire explosion, self ignition, or lightning.
Burglary, housebreaking & theft.
Riots & Strike Earthquake (Fire & Shock)
Act of God perils.
Malicious act Terrorist activity
In transit
Land slide / Rock slide

Liability (Third Party) Cover

Provides coverage for
All the sums which the insured is legally liable to

pay in respect of death or bodily injury to a person.

Damage to third party property up to an amount of

Rs. 7.5 lacs for private car and Rs. 1.0 lac for two
wheelers.
All the legal expenses incurred for defending the

third party claim.

Additional Covers
The other covers which the insured can opt for are
Personal Accident Cover for Owner Driver which is

compulsory.
Personal Accident Cover for occupants as per seating

capacity
Loss of Accessories.
Legal liability to paid driver (As per WC Act.).
Liability to employees

Policy Condition Contd...

All other parts including wooden parts is to be as per the following
schedule
Age Of the vehicle

% of Depreciation

Not exceeding 6 months

Nil

Exceeding 6 months but less than 1 year

5%

Exceeding 1Year but less than 2 years

10%

Exceeding 2 year but less than 3 years

15%

Exceeding 3 year but less than 4 years

25%

Exceeding 4 year but less than 5 years

35%

Exceeding 5 year but less than 10 years

40%

Exceeding 10 years

50%

Key Rating Parameters

Insureds Declared Value (IDV)

Cubic Capacity (CC)

Geographical Zones

Age of the Vehicle

IDV
vehicle
Insureds
IDV of the
is deemed to Declared
be the Sum InsuredValue
of the
vehicle.
IDV = Present Invoice Value (-) Depreciation based on the age
of the vehicle. (Invoice Value = Vehicle Cost + Sales Tax Only)

AGE OF VEHICLE

DEPRECIATION
RATE

Not Exceeding 6 months

5%

6 Months to 1 Year

15%

IDV
1 Years
to 2vehicle
Years will be 95% of the SP
of new

20%

2 Years to 3 Years

30%

3 Years to 4 Years

40%

4 Years to 5 Years

50%

Geographical Zones
Rate

is dependent on the zone where

the vehicle is registered

The

country is divided into two zones

Zone A:-Mumbai, Delhi, Kolkata,

Bangalore, Chennai, Hyderabad, Pune &
Ahemdabad.
Zone B:- Rest of India

Rates For Additional Coverage

Coverage
Electronic
Accessories
CNG / LPG Kit
Fiber Glass fuel tank
Imported Vehicle
without customs
duty - loading

Premium Private Car

Premium
2 Wheelers

4% Of Value

3% minimum Rs
50/-

4% of value plus Rs
60/-

NA

Rs. 50/-

NA

30% Of OD premium

NA

Rates For Liability Coverage's

Liability premium based on cubic capacity

Cubic Capacity (CC)

Pvt Car

Two wheeler

Upto 1000 CC

Rs 670

NA

1000 1500 CC

Rs 800

NA

Over 1500 CC

Rs 2500

NA

Upto 75 CC

NA

Rs 300

> 75 -150 CC

NA

Rs 300

>150 350 CC

NA

Rs 300

> 350 CC

NA

Rs 620

Rates For Liability Coverage's

Contd...
Third Party Property Damage (TPPD) liability
is Rs. 7,50,000/-for private car and
Rs1,00,000/- for two wheelers
TPPD Liability can be restricted, in which
case there will be a reduction in premium by
Rs.100 for pvt. cars and Rs.50 for 2
wheelers
Mid term changes in this cover is not allowed

Rates For Additional Coverage's

Owner Driver PA cover private car -----------Rs. 100/-

Owner Driver PA cover two wheeler ----------Rs. 50/-

PA Cover for passenger Private Car--------Rs. 5/

per10K
(dependant on seating capacity)

Legal liability for paid driver ---------------------Rs. 25/-

Liability for employees Private Car ---------Rs. 25/-

Liability for employees Two wheelers --------Rs. 60/-

Geographical Area Extension ------------------Rs. 500/-

Personal Accident Cover

Personal Accident benefit covers
Death-------------------------------------- 100% CSI
Loss of 2 limbs --------------------------100% CSI
Loss of 1 limb---------------------------- 50% CSI
Permanent total Disablement ------ 100% CSI

Private Cars
Owner Driver Compulsory for Rs. 2,00,000/ Passengers Optional up to Rs. 2,00,000/- per passenger

Two Wheeler
Owner Driver Compulsory for Rs. 1,00,000/-

Discounts

No Claim Bonus

Voluntary Deductibles

Automobile Association Membership

Anti theft devices (Approved by Automobile

Research Association of India)

Handicapped Discount

Side Car Discount

No Claim Bonus NCB

NCB

is a Discount On Own Damage

Premium for claim free years

NCB

follows the fortunes of the insured

and not the vehicle - NCB can be
transferred from one car to another car
owned by the insured

NCB

is not forfeited in case the customer

shifts to a different company

No Claim Bonus NCB Contd...

The customer will enjoy a higher discount over the previous year
in case there is no claim reported during the policy period

All Type Of Vehicles

Discount %

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 Deductible
The portion of claim which the insured
agrees to bear
This is in addition to the Compulsory one
Private Cars

Deductible

(Rs.)
Two Wheelers
Deductible (Rs.)

2500 5000 7500 15000

500

750

1000 1500 3000

Other Discounts

Automobile Association Membership

P. Car - 5% on OD premium or max Rs. 200/T.W 5% on OD premium or max Rs. 50/ Anti theft Devices approved by ARAI
P.Car-2.5% on OD premium or max Rs.
500/- TW - 2.5% on Own Damage premium or
max Rs. 500/-

Other Discounts Contd...

Handicapped Discount
Applicable if the vehicle has been modified to be driven by a
handicapped person. Copy of the RC book mentioning that the
vehicle is driven by a handicapped person is mandatory in case
of giving this discount.
50% discount on OD premium. Applicable only for Pvt Cars.

Side Car Discount

Applicable only for Two wheelers. The customer will get a
discount in the premium if there is a side car attached. 25%
discount on OD premium

Cover Note What is It & Issuance

Process

The Cover Note is a document which

provides interim protection to the vehicle
until the policy document is issued

The Cover note is valid for a period of 60

days from issuance.