Paul Waatson 
Motor insurance policy is the only insurance cover that is mandatory as per the law. All vehicle owners need to compulsorily buy one at the time of registration of the vehicle. But other than the regulatory compliance, a car insurance policy offers also helps in taking care of damages and repair costs sustained.
Essentially, there are two types of car insurance policies that can be bought – third-party / liability-only plans or comprehensive policies. A third party car insurance policy protects the policyholder against and liabilities that become due to a person who sustains injuries or damages. Comprehensive policies on the other hand extend this feature also includes coverage for the damages and injuries sustained by the policyholder.
Car insurance premiums are based on a variety of factor like age, fuel type, engine capacity, type of registration (private or commercial), IDV and more. But one essential determinant of your insurance premium is the geographical region of its registration. In addition, the age of the car and its cubic capacity further play an instrumental role for the premium of a car.
The car insurance premiums are divided in two zones – Zone A and Zone B. While Zone A includes eights metro cities namely Mumbai, Delhi, Chennai, Hyderabad, Bangalore, Kolkata, Ahmedabad and Pune, Zone B includes all other regions. The premium in Zone A is priced higher when compared to Zone B due to the risks of accidents at these locations. High density of population, traffic congestions, high vehicle density are some reasons that increase the risks of accidents at these eight locations. Moreover, other than accidents, the risk of other factors like theft and damages is also higher which further contributes to a higher insurance premium. These zones are further classified in three types each, based on cubic capacity of the engine and the age of the car. Less than 5 years, 5 years to 10 years and above 10 years for the age and less than 1000 cc, 1000 cc to 1500 cc and more than 1500 cc for the cubic capacity. The table below mentions the own-damage premium rates that are charged as a percentage of the IDV in each of these zones based on the age and the vehicle’s cubic capacity.
Premium for Own-damage cover in Zone A (following details can differ as per new rules)
| Cubic Capacity Age of the Car |
Cubic capacity less than 1000 cc | Cubic capacity between 1000 cc to 1500 cc | Cubic capacity more than 1500 cc |
| Less than 5 years | 3.127% of IDV | 3.283% of IDV | 3.440% of IDV |
| 5 years to 10 years | 3.283% of IDV | 3.447% of IDV | 3.612% of IDV |
| More than 10 years | 3.362% of IDV | 3.529% of IDV | 3.698% of IDV |
Premium for Own-damage cover in Zone B (following details can differ as per new rules)
| Cubic Capacity Age of the Car |
Cubic capacity less than 1000 cc | Cubic capacity between 1000 cc to 1500 cc | Cubic capacity more than 1500 cc |
| Less than 5 years | 3.039% of IDV | 3.191% of IDV | 3.343% of IDV |
| 5 years to 10 years | 3.191% of IDV | 3.351% of IDV | 3.510% of IDV |
| More than 10 years | 3.267% of IDV | 3.430% of IDV | 3.596% of IDV |
This is how the premium for the same car may differ across the two zones based on the location of registration. Moreover, using a car insurance premium calculator, this can be computed based on the location of its registering road transport office. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
