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Depreciation Slabs in Car Insurance. IDV Premium Calculator in India

Depreciation Slabs in Car Insurance. IDV Premium Calculator in India

Car Insurance Depreciation Slabs while Calculating IDV Value and Insurance Premium in India. Factors Impacting Premium with Depreciation Slabs in Insurance Calculator

 

Insurance Premium Calculation

Insurance IDV Calculation - Depreciation Chart

Below is Depreciation chart for Insurance IDV Value Calculation in case of New Car (1st Year) and Used Car (2nd Year Onward)

Vehicle Ageing Depreciation Chart
New Car - 1st Year Insurance done at 95% of Exshowroom Price. 5% Depreciation is Deducted
on 2nd Year Renewal 20% Depreciation is Deducted. Insurance done at 80% of Original Exshowroom Price
on 3rd Year Renewal 30% Depreciation is Deducted. Insurance done at 70% of Original Exshowroom Price
On 4th Year Renewal 40% Depreciation is Deducted. Insurance done at 60% of Original Exshowroom Price
On 5th Year Renewal 50% Depreciation is Deducted. Insurance done at 50% of Original Exshowroom Price
6th Year Onward 10% to 15% Depreciation on IDV Value of Previous Year is Deducted Year on Year

 

Factors Affecting Insurance Premium

Factors Impact
IDV Value Basis Depreciation Chart as mentioned above for Calculation. IDV Value is the basis on which Premium is Calculated
Insurance Premium Rate Basis Car Engine Size and Ageing < 1Lit, 1 Lit - 1.5 Lit, > 1.5 Lit - Insurance company Slab Ranges from 3% to 3.5% for Premium Calculation basis IDV Value
Registration Zone Zone A of Metro Cities basis registration has slight higher Premium. Difference is just 2% in Zone A & B Premium
NCB  No Claim Bonus on Year on Year Basis gives Discount on OD Premium. Basis NCB Matrix Given underneath
3rd Party Coverage Basis Engine Size. Upto 1 Lit - Rs 1129, 1 Lit to 1.5 Lit - Rs 1332, Engine > 1.5 Lit - Rs 4109
OD Discounts Every Insurance company offers OD Discounts - whose range goes as high as upto 50% in 1st 5 yrs. Goes down to under 20% from 5th Year Onward and almost 0 after 10th Year. This is basis risk classification and is the main reason why Insurance Premium will vary
Add on Covers Zero Depreciation or Add on Cover will lead to additional premium

 

NCB Matrix (Insurance No Claim Matrix)

No Claim Bonus is the discount on OD Insurance Premium which Insurance Company Offers as a reward discount for no claim raised in previous year

NCB is transferable. So, even if you have Insurance with some other company in Previous Year and intend to move to another insurance company next year - NCB Bonus is very much transferable next year.

NCB Slab NCB Discount offered 
20% After 1 Claim Free Year. Discount offered on OD Premium
25% After 2 Claim Free Years. Discount offered on OD Premium
35% After 3 Claim Free Years. Discount offered on OD Premium
45% After 4 Claim Free Years. Discount offered on OD Premium
50% After 5 Claim Free Years. Discount offered on OD Premium. This is the maximum Discount. Even if Claim Free Years are higher say 7 Years - still max 50% OD Discount Offered 

 


Know More:-

Zero Dep Vs Comprehensive Car Insurance

Zero Depreciation Policy Exclusions

Add on Covers in Car Insurance

Car Insurance Premium Calculator


 

 

INSURANCE CALCULATOR IN 2016

Sample Calculator Referred below Model Honda City 2010 Model in New Delhi

    Calculation
Vehicle IDV - calculated basis depreciation Grid A 380000
Premium Rate - basis Internal Grid of Insurance Co's- generally in range of 3% to 3.5% 3.28% 12475
Loading / Discount - OD Discount offered by Insurance Companies and varies basis Model,Risk Criteria -40% -4990
Gross OD Premium   7485
Add: Optional Add on Accessories Value if fitment done later on 0 0
Less: NCB Bonus Deductible - say vehicle has 2 Claim Free Years -25% 1871
Less: Voluntary Excess - if any Voluntary Deduction 0
Add: Add on Covers (Zero Dep Insurance or Additional Cover Premium) 0
Net OD Premium after NCB Discount   5614
Zero Depreciation Insurance Premium (Add on Coverage)   NA as not opted
Mandatory 3rd Party Cover   1332
PA Cover Owner Driver (Personal Accident Cover of Rs 2 Lakh)   100
Paid Driver + Cleaner   50
Comprehensive(OD+TP)   7096
Add Service TAX 14.5% 1029
NET PREMIUM INCLUSIVE OF SERVICE TAX   Rs. 8125

Some Notes

- The bigger the cubic capacity - higher the insurance premium and third party cover.

- Diesel cars generally have lesser discounts in subsequent Years vis a Vis Petrol Cars

- Zero Dep Car Insurance is mostly in first 5 years of Car Ownership

- OD Discounts basis Risk Weight given to Particular Car Model by Insurance Companies is the Prime Reason for Difference in Premium

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Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments

 

Comments 3

Guest - sumit singh nejwala on Wednesday, 15 February 2017 22:15

hello there, i bought used skoda superb from delhi make year 2011 june .my issue is i want to use this car in uttrakhand with new number and RC for this how much tax i have to pay to the U.K goverment.the invoice price of the car is 2268000.

hello there, i bought used skoda superb from delhi make year 2011 june .my issue is i want to use this car in uttrakhand with new number and RC for this how much tax i have to pay to the U.K goverment.the invoice price of the car is 2268000.
Guest - Saahil on Tuesday, 20 September 2016 20:41

What would be Insurance Premium for Hyundai Xcent Car

What would be Insurance Premium for Hyundai Xcent Car
Guest - saahil on Wednesday, 22 April 2015 21:29

Thanks. But premium are diffetent with every company. I thiink it should be standardizef.

Thanks. But premium are diffetent with every company. I thiink it should be standardizef.
Guest
Saturday, 25 November 2017

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