*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
Gone are the days when you have insurance policies only for health and life, today when you have so many valuable assets, there are insurance policies for everything. From car to home to business, you have the insurance policies for everything. In this article, we are going to discuss some of the common questions that one has related to general insurance.
Ans: Insurance plans that do not come under life insurance are known as ‘General Insurance’. In other words, a general insurance policy helps you to protect you and your valuable items. Below mentioned are the different forms of general insurance plans offered by most of the general insurance providers:
Ans: The insurance providers have secure payment gateways and they assure the safety of your personal information. So, it is completely safe and secure to buy an insurance plan online.
Ans: You can register the claim for your insurance policy in two ways:
Ans: Different factors affect the premiums of different insurance plans.
Age of the Two-Wheeler |
IDV |
Between Zero to Six Months |
95% of the Ex-Showroom Price |
Between Six Months to One Year |
85% of the Ex-Showroom Price |
Between One Year to Two Years |
80% of the Ex-Showroom Price |
Between Two Years to Three Years |
70% of the Ex-Showroom Price |
Between Three Years to Four Years |
60% of the Ex-Showroom Price |
Between Four Years to Five Years |
50% of the Ex-Showroom Price |
It is the IRDAI that decides the third-party insurance premium of the two-wheelers. Below mentioned are the current rates of the premium as per the cubic capacity of the vehicle:
Cubic Capacity of Your Two-Wheeler |
Premiums (Rs.) |
Not exceeding 75CC |
Rs.569 |
Greater than 75CC and less than 150CC |
Rs.720 |
Greater than 150CC and less than 350CC |
Rs.887 |
Greater than 350CC |
Rs.1,019 |
Own damage premium – (depreciation + No Claim Bonus) + Liability Premium
Most of the insurance companies like National General Insurance use this formula to calculate the premium. And in this way it depends on the following factors:
Note: The cars that are new have the maximum IDV but with time due to depreciation it gradually lowers down. Below mentioned are the rates of depreciation as per the Motor Vehicle Act:
The Age of Your Car |
Depreciation (%) |
Up to Six Months |
5% |
Six Months to One Year |
15% |
Between One to Two Years |
20% |
Between Two to Three Years |
30% |
Between Three to Four Years |
40% |
Between Four to Five Years |
50% |
The insurance calculators also follow these guidelines while deciding the premium of its various insurance plans.
Ans: The ‘No Claim Bonus’ is also referred to as NCB. The insurance company gives the NCB to the policyholders for not making any claim in the previous year. This is a kind of reward that is given as a discount over the payable premiums and ranges from 20% to 50%. So, if you have not made any claim in your previous policy year, you can claim the NCB while renewing your policy. The below-mentioned chart will give you a clear understanding of the NCB rate that is given to you:
Claim Free Year |
No Claim Bonus (Percent) |
After One Claim Free Year |
20 Percent |
After Two Consecutive Claim Free Years |
25 Percent |
After Three Consecutive Claim Free Years |
35 Percent |
After Four Consecutive Claim Free Years |
45 Percent |
After Five Consecutive Claim Free Years |
50 Percent |
In this way from first to five years, you can gradually improve the percentage of your No Claim Bonus and get the discount of up to 50% at the end of your fifth claim free year.
The NCB or No Claim Bonus is given to the policyholder instead of a car. Therefore, you can retain the No Claim Bonus, even if you sell your car and purchase a new one. Moreover, if you want to switch to another insurance provider then also you can retain the benefits of No Claim Bonus at the time of the renewal of the policy.
Ans: The Insured Declared Value (IDV) is the value of sum assured provided by the vehicle insurance policy. The IDV is calculated on the basis of manufacturer’s pre-defined price list for a particular vehicle and the current selling price of the vehicle with its percentage of depreciation as mentioned in the rate list. In other words, the IDV is the maximum sum insured given to the policyholder on behalf of loss, theft, complete damage to the vehicle by the insurance provider.
In this way, the IDV depends upon the age, brand, and make of your vehicle and hence it decreases every year while renewing the insurance of your vehicle. The industry that regulates the insurance industry in India (Insurance Regulatory and Development Authority (IRDAI)) has defined the IDV of the vehicle as 95% of the ex-showroom price. With an improvement in the vehicle's age, its depreciation also increases. Therefore, the IDV of a new vehicle is high and it goes down with every passing year.
Age of the Vehicle |
IDV |
Between Zero to Six Months |
95% of the Ex-Showroom Price |
Between Six Months to One Year |
85% of the Ex-Showroom Price |
Between One Year to Two Years |
80% of the Ex-Showroom Price |
Between Two Years to Three Years |
70% of the Ex-Showroom Price |
Between Three Years to Four Years |
60% of the Ex-Showroom Price |
Between Four Years to Five Years |
50% of the Ex-Showroom Price |
Ans: The vehicle owners these days prefer the ‘Zero Dep’ insurance policies in India. As per ‘zero dep’ policy, the policyholder gets the complete claim without any deductions for the depreciation of replaced parts of the vehicle. This as well covers the cost of repairing of the glass, plastic, rubber parts, and fiber. In standard vehicle insurance policy, the rate of depreciation depends on the % of IDV ranging from 0 to 50%, and it also depends on the age and makes of the vehicle. This makes you pay money from your pocket while making a claim. However, if you have taken a zero dep insurance plan, you will not be charged any depreciation and 100% reimbursement is given by the insurance provider that leads to maximum benefits. Zero dep insurance is advantageous for new cars as well as cars up to the age of five years. Even though the premium of zero dep insurance policy is slightly higher than normal insurance covers, but there is no cap on the number of claims that you can make during the entire term of a policy. However, normal breakdowns and wears and tears are not covered in a zero dep insurance policy.
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