The
premium is calculated on the basis of something called the Insured
Declared Value (IDV) of the vehicle, which is basically the depreciated
value of the vehicle agreed upon by the insurer and the policyholder.
The IDV of a vehicle reduces with age. Insurers give a depreciation
schedule for up to five years, which is the starting point for deciding
the IDV of a vehicle: this IDV figure is scaled up or down depending
on the condition of the vehicle. The depreciation schedule is identical
for two-wheelers and four-wheelers (See table: IDV Depreciation Schedule)
You can get your vehicle insured for a value greater than the IDV
calculated on the basis of the specified depreciation schedule, on
account of, say, better maintenance or high-priced accessories.However,
in case of a claim, the onus is on you to justify the higher IDV.
Cover for occupants of vehicle. This section provides cover
against death or injury to the vehicle driver and passengers. The
maximum cover that can be taken under this section is Rs 1 lakh for
a driver and Rs 2 lakh for each passenger.
|
| IDV
Depreciation Schedule |
| Vehicle
Age |
Depreciation(%) |
IDV
(Rs) |
| 6
Months |
5 |
Year
1: 2,00,000 |
| 6
Months - 1 year |
15 |
Year
2: 1,60,000 |
| 1-2
years |
20 |
Year
3: 1,28,000 |
| 2-3
years |
30 |
Year
4: 89,600 |
| 3-4
years |
40 |
Year
5: 53,760 |
| 4-5
years |
50 |
Year
6: 26,880 |
Note:
The depreciation rate is charged as a percentage of the cost
of a new vehicle, on a reducing balance basis. IDV of vehicles
that are more than 5 years oldand of models that manufacturers
have discontinued is to be determined on the basis of an understanding
between the insurer and the insured.
1For a new Maruti 800, costing Rs 2 lakh Rates as
of August 2003 |
|
|
