When the sum insured does not include the COE, the general practice is for insurers to offer a 5% discount off the basic premium computed from the market value of the vehicles.
This is because the sum insured does not impact the premium pricing as much as the public might think. Most insurance claims are for repairs rather than total loss. Therefore, the weightage given to premium pricing for the COE component is correspondingly lower since the bulk fo the premiums charged goes towards paying partial loss.
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