1. IDV (Insured Declared Value)

• Definition: The IDV is the maximum sum assured for a vehicle under an own damage policy. It represents the vehicle’s current market value minus depreciation.

• Why it matters: In case of theft or total loss, the insurer pays the IDV.

• Sales Tip: Explain that higher IDV = higher premium, but also higher claim settlement.

2. NCB (No Claim Bonus)

• Definition: A discount on the Own Damage (OD) premium for each claim-free year, ranging from 20% in the first year up to 50%.

• Key Points:

  • Applies only to OD premium, not third-party premium.

  • Transferable to a new insurer or new vehicle.

• Sales Tip: Highlight NCB as a reward for safe driving and long-term savings.

3. Deductibles (Compulsory & Voluntary)

• Compulsory Deductible: A fixed minimum amount the insured must bear on every claim (e.g., ₹1,000 for cars up to 1500 cc, ₹2,000 above 1500 cc, ₹100 for two-wheelers).

• Voluntary Deductible: An optional higher deductible chosen by the insured in exchange for reduced premium.

• Sales Tip: Position voluntary deductible as a way to lower premiums for confident, low-risk drivers.

4. Constructive Total Loss (CTL)

• Definition: Declared when the cost of repair exceeds 75% of the IDV or the vehicle is beyond repair.

• Sales Tip: Use CTL to explain why IDV selection is crucial—under-insurance means lower payouts in total loss cases.

5. Endorsements (IMT Clauses)

• Definition: Special conditions or modifications added to the policy (e.g., coverage for CNG/LPG kits, electrical accessories, use for driving schools).

• Sales Tip: Tailor endorsements as customized solutions—they show customers that policies can adapt to unique needs.

6. Break-in Insurance

• Definition: When a policy lapses (not renewed on time). Requires vehicle inspection before re-issuance.

• Sales Tip: Stress timely renewal to protect NCB benefits and avoid inspection hassles.

7. Cover Note

• Definition: A temporary certificate issued for up to 60 days when the full policy document cannot be immediately issued.

• Sales Tip: Use this term to reassure clients—“You are covered instantly, even before the final policy document arrives.”

8. Certificate of Insurance

• Definition: Legal proof of insurance under the Motor Vehicles Act. Must be produced on demand by traffic police.

• Sales Tip: Emphasize its role as a mandatory document—reinforces why insurance isn’t optional.

9. Add-On Covers

• Examples: Zero Depreciation, Engine Protect, Roadside Assistance, Return to Invoice.

• Sales Tip: Position add-ons as “affordable upgrades for complete peace of mind.”

Key Takeaways for Agents & Sales Managers

1. Simplify Jargon: Break terms like IDV or NCB into everyday examples.

2. Highlight Value: Show how these terms affect claims, savings, and peace of mind.

3. Upsell Smartly: Use add-ons and endorsements to increase policy value.

4. Educate Customers: Empower clients with clarity—trust leads to loyalty.

✅ In short: Knowing and explaining IDV, NCB, deductibles, CTL, and endorsements is not just about compliance—it’s about building credibility and selling smarter.