How Is Car Insurance Premium Calculated

Here’s the formula:

Total Premium = Own Damage Premium – (NCB + Discounts) + Third-Party Liability Premium + Add-on Premium + GST

Own Damage Premium: Based on your car’s IDV, age, make, and model.
No Claim Bonus (NCB) & Discounts: Bonus discount earned on claim-free years or by opting for voluntary deductibles.
Third-Party Premium: Fixed by IRDAI, calculated based on engine capacity (cc).
Add-on Premium: On payment of additional premium, you can opt for covers like Engine Protect Plus, Zero Depreciation, etc