Sum Insured

- For fire, the property may be insured on depreciated value   (Indemnity Value)or on new replacement value(Reinstatement   Value basis)
- For motor insurance, a vehicle can be insured on market value   basis.
- For other s there are different ways of arriving at the sum   insured/limit of liability.

Premium

- For fire premium rate depends on the nature of construction,   trade, clustering of risks, risk minimization measures and so on
- For motor premium depends on model, cubic capacity, and   purpose of use
- As the insured opts for the various enlisted components, he/she   will be charged at a discounted premium vis-à-vis the usual premium that’s applicable to the individual risks.