Sum Insured – Insured’s declared Value (IDV)
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.