Automobile insurance premium is calculated based coarsely swap parameters.

Car insurance is not only compulsory by show, but along with a prudent policy for vehicle owners. As per the rules, all motor vehicles should be insured at least for third party answerability.

However, considering the high risk of accidental irregular to your vehicle and the high cost of repairs especially for newer or premium cars, it is advisable to lid your vehicle under a quantity insurance policy.

The minimum concrete insurance knocked out Motor Policy A, or ‘Act Only Policy’ covers unqualified answerability in exploit of death or instinctive insulted to third party, and damages to third party property to the extent of Rs 6000.

A united insurance policy (Motor Policy ‘B’) covers not just third party liability but losses due to accident, blaze, theft, floods, earthquakes, and supplementary specified perils. Damages to third party property above Rs 6,000 can as well as be covered below this policy.

Car frills following music systems, song-conditioners and appropriately in excuse to can be covered by paying auxiliary premium. By paying calculation premium, you can plus lid not well-disposed of personal accident to yourself, spouse, intimates members, employees and correspondingly is the subject of.

Insurance premium

You can get grip of an insurance policy by paying a premium to an insurance agent or to the insurance company. The premium amount is calculated based a propos the car’s atmosphere value, which is a pursuit of the make and model, condition of the vehicle and the resale value, and the value of its accessories. Premiums are paid annually, and the insurance is definite for a mature of a year.

The manner value of the car should be estimated all times you renew your premium. The insurance must be renewed prior to the expiry date of the policy, as it is illegal to dream without a legitimate insurance lid.

The insurance premiums are regulated by the All India Motor Tariffs, and are thus uniform across insurance companies. For a collect policy, the premium covers all avowed risks, but if you aspiration to exclude certain risks such as earthquake you may aspire the insurance company and they will meet the expense of you a discount is the insurance premium.

You could along with opt for voluntary excess i.e. receive to bear a unqualified idea percentage of the loss for all sworn message, and for that reason avail of a discount in premium. A five percent discount (subject to a maximum of Rs 100) is moreover all along for members of recognized automobile dealings.

Motor insurance policies are normally taken for a era of one year. While you cannot insure your vehicle for anew a year, a policy for a shorter term is within operate, which is okay if you are planning to sell your vehicle within a few months. The premium for this curt period insurance is more costly than the gain-rata premium for a full period insurance.

No allegation additional

If you put-on not make any insurance claims during the duration of your insurance policy, you are eligible for a no sworn statement choice. No affirmation bonuses are discounts upon the insurance premium for the later year (i.e. discounts offered upon the renewal premium) and are as follows:

1.No claims for one year: 20 percent discount upon 2nd year premium
2.No claims for two years: 35 percent discount upon 3rd year premium
3.No claims for three years: 50 percent discount upon 4th year premium
4.No claims for four years: 65 percent discount upon 5th year premium

The discount is applicable to that share of the premium that covers ‘own inconsistent’. You can avail the accessory once you renew your policy, or within 90 days of its expiry.

If you sell your car you are eligible for the auxiliary, which is adjusted the length of the premium of an additional car, if the get accord of is made within a grow out of date of three years. In deed you obtain a used car, you can transfer the existing insurance policy to your say by informing the insurance company within 14 days from purchasing the car.


On the new hand, if you make a avowal in consecutive years, the insurance company will load an accumulation penalty or malus upon your renewal premium. If you make claims every single one portion of year, your malus will be as follows:

1.On 2nd year renewal premium: Nil (i.e. your no official announcement appendage reduces from 20 percent to nil)
2.On 3rd year renewal premium: 10 percent
3.On 4th year renewal premium: 30 percent
4.On 5th year renewal premium: 50 percent

For example, if you obtain not allegation any insurance in the first year you are entitled to a 20 percent other upon your 2nd year premium.

If you allegation insurance in the 2nd year subsequently you are not eligible for any discount upon your 3rd year premium, i.e. your no allegation bonus is nil for the 3rd year premium. If you do not make any claims in the 3rd year you are again eligible for a 20 percent discount upon your 4th year premium.