This page lists exactly what each calculator does, so you can check our numbers line by line. Rules were last checked in October 2026. When a regulator or the Government notifies a change, we update the calculators and this page.
1. IDV and vehicle depreciation
We use the age-wise depreciation schedule for fixing IDV that appears in standard private car and two-wheeler policy wordings in India:
| Age of vehicle | Depreciation for IDV | IDV as % of ex-showroom |
|---|---|---|
| Not exceeding 6 months | 5% | 95% |
| Exceeding 6 months but not exceeding 1 year | 15% | 85% |
| Exceeding 1 year but not exceeding 2 years | 20% | 80% |
| Exceeding 2 years but not exceeding 3 years | 30% | 70% |
| Exceeding 3 years but not exceeding 4 years | 40% | 60% |
| Exceeding 4 years but not exceeding 5 years | 50% | 50% |
| Above 5 years | Mutually agreed | Based on market value |
- Age is measured from the date of first registration (or purchase) to the policy start date, in calendar months and days. A vehicle exactly 6 months old is in the first slab; one day more moves it to the next.
- IDV = ex-showroom price − depreciation. Electrical and non-electrical accessories not included in the ex-showroom price, and externally fitted CNG/LPG kits, are depreciated at the same rate and added.
- Registration, road tax and insurance are excluded, as in the policy definition.
- Beyond 5 years there is no fixed rate; IDV is mutually agreed. We show an indicative figure using 5% additional depreciation per year (55% at 5–6 years, 60% at 6–7 years, and so on, capped at 85%), clearly labelled as an estimate.
- The “typical band” shown (about ±10%) is indicative; each insurer sets its own adjustment limits.
2. Depreciation on parts in a claim
| Part type | Depreciation on claim |
|---|---|
| Rubber, nylon and plastic parts, tyres, tubes, batteries, airbags | 50% |
| Fibreglass components | 30% |
| All glass parts | Nil |
| Painting — material part (25% of paint bill if not itemised) | 50% |
| Labour | Nil |
| Metal parts — age of vehicle | Depreciation |
|---|---|
| Not exceeding 6 months | Nil |
| 6 months – 1 year | 5% |
| 1 – 2 years | 10% |
| 2 – 3 years | 15% |
| 3 – 4 years | 25% |
| 4 – 5 years | 35% |
| 5 – 10 years | 40% |
| Above 10 years | 50% |
For painting, 50% depreciation applies to the material cost, taken as 25% of the painting bill when it is not itemised (an effective 12.5% of the paint bill).
3. No Claim Bonus
| Consecutive claim-free years | NCB on own-damage premium |
|---|---|
| 1 year | 20% |
| 2 years | 25% |
| 3 years | 35% |
| 4 years | 45% |
| 5 years or more | 50% |
NCB applies to the own-damage premium only. A claim resets it to 0% at the next renewal; with NCB Protection we assume the current NCB is retained for that renewal without stepping up.
4. Deductibles
Compulsory deductible per claim: ₹1,000 (private cars up to 1500cc), ₹2,000 (above 1500cc), ₹100 (two-wheelers). Voluntary deductible discounts follow the India Motor Tariff reference slabs shown on the deductible calculator page.
5. Premium estimates
- Third-party premium: base rates under the Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022 by engine cc or EV motor power. These are the same for every insurer.
- Own-damage premium: India Motor Tariff reference rates by zone, vehicle age and cc, multiplied by IDV, then reduced by the insurer discount you set. Insurers price OD cover themselves, so this is an estimate.
- Order of discounts: voluntary deductible discount, then NCB, as in standard premium computation.
- Add-ons: indicative prices as a percentage of IDV or a flat amount. Real add-on prices vary widely between insurers.
- PA cover: owner-driver ₹15 lakh cover; the default price is editable because it varies by insurer.
- GST: 18% on the total premium (motor insurance was not part of the September 2025 exemption for individual life and health insurance).
6. Claim vs pay, zero-dep, RTI and comparisons
- Claim vs pay: payout = bill − parts depreciation − deductibles; NCB loss = base OD premium × (NCB without claim − NCB with claim) for each renewal in the horizon, plus 18% GST. Base OD premium is the OD premium you pay divided by (1 − current NCB).
- Zero-dep: saving per claim = the parts depreciation above; compulsory deductible applies in both cases.
- RTI gap: invoice value (ex-showroom + registration and road tax, plus first premium if your cover includes it) − IDV for each year.
- IDV vs premium: premium ÷ IDV × ₹1,00,000, and the marginal cost of each step up in IDV.
- Renewal score: 45% IDV per rupee of premium, 40% weighted add-ons, 15% lower voluntary deductible.
Sources
- Standard private car and two-wheeler package / standalone own-damage policy wordings filed by Indian general insurers (IDV schedule, parts depreciation, total loss definitions).
- Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022 — Ministry of Road Transport & Highways, in consultation with IRDAI.
- Insurance Regulatory and Development Authority of India — irdai.gov.in.
- GST Council decisions effective 22 September 2025 on insurance services.
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