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Posts: 50
Registered: ‎31-03-2016

Premium Calculation

What is the procedure for premium calculation for motor insurance policy?

Occasional Contributor
Posts: 11
Registered: ‎30-05-2017

Re: Premium Calculation

Hi Dasu,


Calculation of premium depends on various factors.

The premium is calculated basis the Make/Model of your vehicle, its Age, Place of Registration, Fuel Type and Insured Declared Value (IDV) (IDV = Current ex- showroom price of the vehicle – depreciation rate)


The premium is also subject to certain deductions based on the Insured’s Age and Occupation and the No Claim Bonus earned by the Insured during the policy period.


There are discounts provided for anti-theft devices, voluntary deductables etc. 


Then there are some extended coverage which increases the premium like Electrical / Non Electrical Accessories, CNG/LPG fuel Kit, addition named/unnamed passenger cover etc. 


Calculation of premium is not that complicated as it looks, Why dont you go on some Insurer's website and submit your details as asked in the proposal form, and you will know the exact premium for your vehicle. 


I calculated on this link : https://www.hdfcergo.com/OnlineProducts/motoronline/NewBusiness/CalculatePremium.aspx , I found it absolutly simple to calculate premium with HDFC ERGO General Insurance Company.