Sum In­sured – In­sured’s de­clared Value (IDV)

Consumer Voice - - Car Insurance -

This is the most im­por­tant as­pect of your mo­tor in­sur­ance pol­icy. Sim­ply put, it is the mar­ket value of your ve­hi­cle at the time of com­mence­ment of the pol­icy. It is cal­cu­lated by the in­surer on the ba­sis of the man­u­fac­turer’s listed sell­ing price of the ve­hi­cle (plus the listed price of any ac­ces­sories), af­ter de­duct­ing the de­pre­ci­a­tion for ev­ery year as per the sched­ule pro­vided by the In­dian Mo­tor Tar­iff. In case of theft or to­tal loss of the ve­hi­cle, the claim amount may be less than or equiv­a­lent to the IDV.


Cal­cu­la­tion of the pre­mium is based on th­ese fac­tors: sum in­sured (in­sured's de­clared value), make of the car, model of the car, year of man­u­fac­ture, zone of reg­is­tra­tion, en­gine ca­pac­ity (cu­bic ca­pac­ity), ‘no­claim bonus’ dis­count, seat­ing ca­pac­ity, paid driver/owner driver, add-on cov­ers, load­ing due to ac­ci­dent, lapsed pol­icy, theft-risk fac­tor, etc.

Rid­ers are op­tional add-ons to your ba­sic pol­icy that in­crease the cov­er­age on your in­sur­ance. Rid­ers not only save you from the cheeky ex­clu­sions but also of­fer some valu­able benefits. Spend­ing some ex­tra money for rid­ers can save you big headaches. They are briefly sum­ma­rized here. Per­sonal ac­ci­dent rider: Many car in­sur­ance plans come in­built with this rider. But in case your plan does not cover per­sonal ac­ci­dent, it is only pru­dent that you get this rider added in your plan. This rider cov­ers you against ac­ci­den­tal death, per­ma­nent par­tial/to­tal dis­abil­ity and tem­po­rary par­tial dis­abil­ity. Elec­tri­cal/Elec­tronic ac­ces­sories: This en­com­passes all the elec­tric fit­tings such as air con­di­tion­ing and fog lights, mu­sic/au­dio sys­tem, rear cam­era, etc., which are not part of the orig­i­nal equip­ment pro­vided by the car man­u­fac­turer but which pro­vide rid­ing com­fort/en­ter­tain­ment.

CNG/LPG/Bio-fuel kits:

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