Components of Motor InsurancePosted on: March 21, 2016, by : admin
IDV means Insured’s Declared Value. It is the current market value of your vehicle. IDV is arrived at by adjusting the current Manufacturer’s Listed Selling Price(*see below) of the vehicle with depreciation percentage listed in the table below:
|VEHICLE||% OF DEPRECIATION|
|Not exceeding 6 months||5%|
|Exceeding 6 months but not exceeding 1 year||15%|
|Exceeding 1 year but not exceeding 2 years||20%|
|Exceeding 2 years but not exceeding 3 years||30%|
|Exceeding 3 years but not exceeding 4 years||40%|
|Exceeding 4 years but not exceeding 5 years||50%|
For vehicles that are obsolete and aged over 5 years, the IDV will be the value agreed between Bajaj Allianz General Insurance (insurer) and you (insured).
*Manufacturer’s Listed Selling Price = Cost Price + Local Duties / Taxes, excluding Registration and Insurance.
- Motor third-party insurance or third-party liability cover, which is sometimes also referred to as the ‘act only’ cover, is a statutory requirement under the Motor Vehicles Act.
- It is referred to as a ‘third-party’ cover since the beneficiary of the policy is someone other than the two parties involved in the contract i.e. the insured and the insurance company. The policy does not provide any benefit to the insured; however it covers the insured’s legal liability for death/disability of third party loss or damage to third party property.
- A third party insurance policy is a policy under which the insurance company agrees to indemnify the insured person, if he is sued or held legally liable for injuries or damage done to a third party. The insured is first party, the insurance company is the second party, and the person you the insured injure or who claims damages is the third party.
PA Cover for Passengers:
If you have opted for this cover (which is available on extra premium) then there is compensation payable to the family members of the passengers in case of death. There is no cost of medical bills or any expenses payable to the injured passengers.
Voluntary deductible is your option to opt for bearing a certain amount of loss from every claim. For this option, you are eligible for a discount on Own Damage Premium (ODP) as listed in the table below:
|Rs.2500||20% on the OD Premium of the vehicle, subject to a maximum of Rs.750/-|
|Rs.5000||25% on the OD Premium of the vehicle, subject to a maximum of Rs.1500/-|
|Rs.7500||30% on the OD Premium of the vehicle, subject to a maximum of Rs.2000/-|
|Rs.15000||35% on the OD Premium of the vehicle, subject to a maximum of Rs.2500/-|