How To Calculate Motor Insurance Premium

lorem ipsum admin     02-04-2018

Let us understand the factors that affect insurance premiums. We will now put light on the following:

Two Wheeler Insurance Calculator:

Well, the premium for your two wheeler insurance depends on the Insured Declared Value (IDV) based on the ex-showroom price, depreciation, zone of registration and the cubic capacity of the two-wheeler (only in case of third-party insurance).

Two wheeler age IDV
Between 0 to 6 months 95% of the Ex-showroom price
Between 6 months to 1 year 85% of the Ex-showroom price
Between 1 year to 2 years 80% of the Ex-showroom price
Between 2 years to 3 years 70% of the Ex-showroom price
Between 3 years to 4 years 60% of the Ex-showroom price
Between 4 years to 5 years 50% of the Ex-showroom price

The IRDAI decides the third-party insurance premium for your two wheeler insurance. The current rates depending on the cubic capacity are mentioned below:

Two wheeler cubic capacity Premium (Rs.)
Not exceeding 75cc Rs.569
Exceeding 75cc but not exceeding 150cc Rs.720
Exceeding 150cc but not exceeding 350cc Rs.887
Exceeding 350cc Rs.1,019

Car Insurance Calculator:

A car insurance premium calculator is a vibrant online tool to figure out the quotes of different insurance policies in India.

The car insurance premium is calculated based on the below mentioned formula.

Own damage premium – (depreciation + NCB) + Liability premium

The premium for your car insurance depends on the below mentioned factors:

  • IDV
  • Cubic capacity
  • Manufacturing year
  • Geographical location
  • No claim bonus (NCB)
  • Remember that a car that is new will always have the maximum IDV, but will gradually lower down due to depreciation.

Mentioned below are the standard rates of depreciation specified by the Motor Tariff Act:

Your Car’s age Depreciation %
Up to 6 months 5%
6 months to 1 year 15%
1-2 years 20%
2-3 years 30%
3-4 years 40%
4-5 years 50%

Health Insurance Premium Calculator:

There are many factors that decide the health insurance premium. Mentioned below are the generic factors that are taken into consideration while deriving the premium amount for your health insurance:

  • Marketing and Management Costs: These expenses are none other than advertisement costs, marketing costs, broker's commission and other operational expenses.
  • Mortality: In case of any uncertainty to the insured, the insurance company bears this cost. This however fluctuates depending upon the age and the income of the insured person.
  • Personal history: Your habits like consuming alcohol, drugs, smoking and the age is all taken into consideration by the insurance company based on which your premium is calculated.
  • Medical underwriting: In order to refrain the insurance company from suffering any losses, the medical underwriting process is taken into consideration. This is the reason insurance products are always underwritten first to maintain a balance between individual and group insurance policies.

Term Insurance Premium Calculator:

Term insurance premium calculator are the most vibrant tools that will help you to compare and analyze your insurance requirements. The below mentioned factors are used to calculate your term insurance premium:

  • Age of the insured: Age is the most important deciding factor to derive your term insurance premium. At a younger age, you are less likely to fall prey to lifestyle diseases or death. Insurance company would thereby save money in the near future since the possibilities of making a claim are less.
  • Personal habits: If you are addicted to alcohol, drugs or smoking habits, your insurance company will charge you a bomb for your premium. At times, there are changes of a policy denial too. People who aren’t addicted to these habits pay almost 30 to 70% premium lower than the ones addicted to it.
  • Health record: You will enjoy a lower premium if you have not had a family history of cancer, Alzheimer's etc. This survey is done so that your chances of falling prey to these diseases automatically reduces.
  • Tenure of the insurance policy: The term insurance premium calculator will be affected adversely if you buy a term plan that covers your retirement age as well as till you pay off all your liabilities.
  • Coverage/sum assured: It is advisable to opt for a coverage as per your requirement. The higher the sum assured, higher would be the insurance premium.