Period of Insurance and Short Period Premium Rates for Motor Policies

Find out what is period of Insurance and Premium rates for Short Period Insurance for Motor policies…

  1. Usually Period of Insurance in Motor policies will be 12 months. In any case policy won’t be issued more than 12 months.
  2. In some cases like purpose of arriving at a particular renewal date or for any other reasons convenient to the Insured Motor Policies may issue less than 12 months. This is Called Short period cover.
  3. Short Period Cover/ Renewal may be granted for periods less than twelve months at the following short period scale:
Short Period% of Annual Premium Rate
Short Period%  of Annual Premium Rate
Not exceeding 1 month20%
Exceeding 1 month but not exceeding 2 months30%
Exceeding 2 months but not exceeding 3 months40%
Exceeding 3 months but not exceeding 4 months50%
Exceeding 4 months but not exceeding 5 months60%
Exceeding 5 months but not exceeding 6 months70%
Exceeding 6 months but not exceeding 7 months80%
Exceeding 7 months but not exceeding 8 months90%
Exceeding 8 monthsFull annual premium/ rate

In recent developments as per supreme court order 3 years policy will be issued to a new Private Car at the time of delivery.

In same way 5 years policy will be issued to a Motor Cycle/scooter at the time of delivery.

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