NATIONAL INSURANCE COMPANY LTD HEAD OFFICE

                 Re. Delegation of Granting Nil Depreciation cover as an

                     add-on with Two wheelers and Private Car policy      

     Since Nil Depreciation add-on was approved from IRDA it was selectively  granted for individual proposals from Head Office. In view of the rising number of proposals for the said add on cover and in consideration of the feedback on market demand received from various ROs The competent Authority at HO has   decided to delegate the authority to RO-in-Charges with immediate effect to  grant such cover who may in turn delegate the same to an officer not below the rank of Scale IV posted in RO. The ROs shall consider granting of the said cover in line with IRDA approval and individual proposals need not be referred to Head Office for approval anymore. This add-on may be utilized as a new marketing tool to widen our market share in these classes of vehicles. However proposals under tie up arrangements have to be referred to Head Office with recommendation of respective RO for approval.    

       

     We are giving below the salient features , rates , deductibles , underwriting guidelines , endorsement wordings for your use and grant the cover. We also enclose a copy of IRDA’s approval for the same.     

Rating  i.e ,  loading of premium to be applied on the Basic OD premium     in respect of Private cars and Two wheelers :

Sr.No.	Age of the vehicle	Loading on basic Own damage rate
1)	New vehicle	10 to 15%
2)	Less than two years	20 to 25%
3)	Between two and three years	30 to 35%
4)	Between three and five years	35 to 40%

                                                                                                      …………….2

                                                            : :  2 : :

Deductibles :

 a) Pvt.car : 5% of claim amount subject to a minimum of Rs.500  and maximum of Rs.   

    2,500.

 b) Two wheelers: 5% of the claim amount subject to a minimum of Rs.250 and maximum

     of Rs.1000.

Underwriting guidelines :

It is advisable to grant the cover to new vehicles at the time of Purchase only and continued during each renewal by charging the appropriate loading as per table above.

No mid term cover to be granted.

In case cover by an existing insured is sought it may be granted subject to inspection at the time of renewal and the insured being entitled to ‘No claim bonus’.

In respect of insurances under Tie up arrangements decision regarding granting of cover and other terms and procedures will be decided at Head office.

                                                                                                                                                                                                                                                                             

Endorsement wordings :

In consideration of payment of additional premium as indicated in the Schedule it is  

hereby agreed and understood that indemnification in respect  of Partial loss claims

shall be done without application of Depreciation as mentioned in Section 1. of the

policy .

However claims payable in accordance with this endorsement will be subject to a

Deductible of 5% of the claim amount subject to a minimum of Rs.*……………..and

Maximum of Rs.*………………….. in addition to the deductible stated in the

 Schedule.(* insert appropriate amount depending upon the class of vehicle)

                                                                                                   …………..3

                                                   : :  3  : :

Norm for Granting :

A . Individual Insured

(i) may be granted to all new cars/two wheelers for the 1^st year policy and the same add on may be continued in the subsequent policy periods ,

(ii) may be considered for all existing policies on renewal if enjoying NCB but subject to inspection of the vehicle and the cover may be granted on subsequent renewals.

B.  Fleets

The Nil Depreciation Add on may be granted to a fleet if the average ICR of the fleet for last 3 years is within 60%

C. Corporate with a fleet of cars/two wheelers

Same as ‘B’ above

D. Dealers

Same as ‘A’

E. Tie-Ups

All proposals under Tie Up arrangement to be referred to HO with recommendation of RO

                                                                                   ( S M Chura )

                                                                                  Chief Manager

Encl : Copy of IRDA approval

Master Cir No. CMD-1112-034-MOT-003 Dt.31.01.2012

c.c. to: Deptts/Files:

IA & ID, Vigilance, NCIL, OL, Mktg.

CSD, MSD, MSD (IT), Tech/A/160/1(2)

Tech/A/160/1(5), Tech/A/160/1(23)

Tech/A/160/10(8)