Car Insurance Depreciation Slabs while Calculating IDV Value and Insurance Premium in India. Factors Impacting Premium with Depreciation Slabs in Insurance Calculator
Car Insurance Premium Calculation - Depreciation
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 Car Insurance Premium
- IDV Value: Basis Depreciation Chart as mentioned above for Calculation. IDV Value is the basis on which Premium is Calculated
- Engine Size: Car Engine Cubic Capacity has Different Third Party and Own Damage Rates. Basis Car Engine Size and Ageing < 1Lit, 1 Lit - 1.5 Lit, > 1.5 Lit
- Fuel Type: Insurance companies do offer differential premium basis Petrol, Diesel, CNG and EV Cars. Been Diesel and CNG Cars known to be driven higher - premium is marginally higher
- Car Registration Zone: Zone A of Metro Cities basis registration has slight higher Premium. Difference is just 2% in Zone A & B Premium
- Coverage: Depends on Policy Add on Covers as what availed. Higher the number of covers like Engine Cover, Zero Depreciation, Consumables, Personal Belonging etc - higher the premium
- NCB Discount: No Claim Bonus on Year on Year Basis gives Discount on OD Premium. Basis NCB Matrix Given underneath
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 2022
Sample Calculator Referred below Model Honda City 2015 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 | 0 |
| Add: Add on Covers (Zero Dep Insurance or Additional Cover Premium) | 0 | 0 |
| Net OD Premium after NCB Discount | 5614 | |
| Zero Depreciation Insurance Premium (Add on Coverage) | NA as not opted | |
| Mandatory 3rd Party Cover | 2727 | |
| PA Cover Owner Driver (Personal Accident Cover of Rs 15 Lakh) | 100 | |
| Paid Driver + Cleaner | 50 | |
| Comprehensive(OD+TP) | 7401 | |
| Add GST | 18% | 1332 |
| NET INSURANCE PREMIUM INCLUSIVE OF GST | Rs. 8733 |
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
