equation modeling

Business Requirement Specification <Blaze>

Business Requirements SpecificationFor

<Equation Module for All Motor products (package & liability only)>

Page 1 of 33


Table of contents

1 Introduction 42 Business Process Overview 43 Business Processes 5

3.1 List of business processes impacted 53.2 Details of the business processes impacted 53.3 Business need and reason for change 53.4 Business Benefits 5

4 Detailed Business Requirements 64.1 Functional requirements 64.2 Non-functional requirements 64.3 UI requirements 64.4 Reporting requirements 64.5 Legal and compliance requirements 64.6 Other requirements 6

5 Additional Information 75.1 Impact of CR on other interfaces or systems 75.2 Type of Change 7

6 Appendix 7

Page 2 of 33


DOCUMENT CONTROL

Application: <Blaze>

Whizible Number CR-8036-31810

Author Mr.Neyaz Ahmed

Reviewed by Mr.Udayan Joshi

To be approved by Mr.Amitabh Jain

Initiator Name Mr.Neyaz Ahmed

Initiating Vertical Name Customer Service – Motor

Business Process/Product Motor-All Products

Cost Center details 099-54900

Priority (High/ Low/ Medium) High

Contact person from initiating group. In case of doubts/ clarifications

Neyaz Ahmed/Ankit Parekh

Version History

Version Amendment(s) Date Amended By Reviewed By Signed Off By

0.10.2

Related Documents

Ref.: Document Name Title

Distribution List and Sign-Off

Name Role Vertical Sign-Off Required Sign-off Obtained

Amitabh Jain VP CS-Motor Yes/No Yes/NoYes/No Yes/NoYes/No Yes/No

Page 3 of 33


1. Introduction

Introduction of the Equation Module & renewal rule engine for Motor products in blaze & pathfinderTransaction type-All Policy type – Package & Liability only

2. Business Process Overview

There will be change in the calculation logic of Basic OD rate for all motor products.The current logic of Grid I ,II,III,IV & V to be removed for ascertain of basic OD rate. Other calculation post deriving of Basic OD rate will remain unchanged.Basic TP premium will also be computed in blaze

3. Business Processes

3.1 List of business processes impactedThe below business process will be impacted

All webservices (Iagent/ILPOS/Echannel/SOA/Renewal to Motor policy issuance)

Renewal Endorsement Premium Calculator

3.2 Details of the business processes impacted

There will be change in all motor webservices due to change in the calculation logic of basic OD.During renewal & endorsement of the policy , impact of changes should be considered (details provided in functional requirement section)

3.3 Business need and reason for changeGiving the flexibility for the pricing as per the define parameters & to have a risk base pricing module.Automation of the renewal policy through allied system

3.4 Business Benefits Flexibility in pricing & UW control with exceptional call configurability through system

Page 4 of 33


4. Detailed Business Requirements

4.1 Functional requirementsReq. ID

Requirement Description Notes/ Issues

FR1.0 For Blaze changes

With the introduction of Equation Module , the Basic OD rate & Basic TP premium will be derive from the define parameters

The equation will be base on the below categories

1. Parameter master2. Relative of parameters3. Severity master4. Target Loss Rate (TLR) master5. Fixed factor master 6. Additional charge master (Grid 1)7. Equation of Own Damage8. Exceptional rules9. IL_Tariff10. IMT-Tariff (Grid 1)11. File Product Reference (Validation)12. NCB Masters & count of claim 13. Endorsement 14. Add-on Applicability15. Third party premium16. IDV master

1.Parameter-There will be defined parameters for the calculation of basic own damage rate along with the relation with the Severity/LR masters. Parameters to be used for basic TP premium computation also

Case sensitive to be ignore in the parameter name

List of parameters are as per the attachment

Parameters Descriptions Mandatory

Product (Product CODE) IL product code eg.3001, 3001/A,3003,3003/A Y

Type Of Business Direct/Intermediary Y

Transaction type New/Rollover/Used/Renewal Y

VEHICLE MANUFACTURER CODE Manufacture code of the vehicle. Y

Model Cluster Model cluster of the vehicle. Y

Model code Model code Y

Vehicle Subclass Vehicle sub class code(is applicable for commercial products only) *N

<If Any>

Page 5 of 33


Gross Vehicle Weight Gross Vehicle weight of the vehicle (applicable for GCV products only) *N

Carrying capacity *Mandatory for PCV Products *N

Seating Capacity *Mandatory for PCV Products *N

Policy class Public/Private carrier(applicable for GCV products only) *N

Cubic Capacity N

NUMBER OF WHEELS N

Vehicle ExShowroom Price N

MINIMUMPRICE Minimum price for TW as per model master N

MAXIMUMPRICE Maximum price for TW as per model master N

Car Category Name of the car category Y

Car Segment Name of the car segment Y

Fuel Type Type of fuel Y

Ex-showroom slab Name of the slab (like slab1, slab2…. Etc) Y

VEHICLE MODEL STATUS Status of the vehicle like Active/Negative Y

DATE OF IMMOBILIZER N

RTO clustor RTO cluster of the vehicle Eg.PL10 Y

RTO Code RTO Code of the vehicle eg.1234 Y

RTO Hub Hub code of the vehicle eg.5200 N

RTO State Code Eg.55 N

Source System echannel/Iagent/ILPOS/Genisys N

Age of the vehicle As per the age logic of add-on covers parameter Y

Covernote Type Auto/Manual N

Hypothecation Y/N N

Financier Name 1 N

Agreement type 1 Lease/Hypothecation/Hire Purchase N

Financier Name 2 N

Agreement type 2 Lease/Hypothecation/Hire Purchase N

Co Insurance Type N

Leader/Nonleader N

Company Short Name N

No. of Cleaner /Conductor N

No. of Drivers N

No. of Employee N

No. of Non fare paying passenger N

No Of Hirer Or Hirers Employee N

No. of workman N

Type Of Calculation Short period/Prorata/Full N

Page 6 of 33


S.Tax Exemption Category No Exemption,SEZ,Etc N

Sectors Rural/Social/Rural & Social/Others N

Deal Number eg.DEAL-3001-0206101 N

Intermediary Category eg.AGENT,broker N

Branch Office Code Deal’s Branch Office Code N

Primary Vertical Name of Primary Vertical N

Secondary Vertical Name of Secondary Vertical N

IL Business Location Name of IL Business Location N

Office Code Branch Office Code as per the deal N

Parent Office Code Deal’s Parent Office Code NNo Previous Insurance Details Flag True/False Y

Policy Start Date Y

Policy End Date Y

Open CoverNote Flag True/False N

BODY TYPE CODE N

Purchase / Regn Date Y

First Registration Date N

PA cover for paid driver/Cleaner/Conductor True/False N

No. of Trailor For CV products only N

Trailer Type Agriculture/non agriculture/blank N

LPG/CNG Flag True/False Y

TPPD Sum insured N

Geographical Extn flag True/False Y

Previous Policy Type Comprehensive/TP N

Previous policy start date N

Previous policy end date N

Endorsement Type ISSUED/RENEWED N

Intermediary Code eg.2010090189 N

Customer Type Individual/Corporate/Govt undertaking Y

Date of Birth N

Gender N

Drivers Age(Yrs) N

Vehicles Driven By Owners/Others N

Drivers Exp. (Yrs) N

Drivers Qualification N

Youngest Driver Age (Yrs) N

No. Of Children below 14yrs N

Avg. KM / month 10-15/16-30/31-50/Above 50 N

Current Km Reading N

Night Parking Type Inside Compound/Outside Compound N

Zero Depreciation ZD flag N

Zero Depreciation Plan name N

NCB Protect (previous policy) NCBP Flag N

NCB Protect (Renewal policy) NCBP Flag N

Page 7 of 33


NCB Protect Plan name (current) N

Consumables Flag N

RTI Flag N

Garage Cash Flag N

Garage Cash Plan name N

Voluntary deductible Flag N

Voluntary deductible plan name N

Loss date/Accident date From Fasttrack in PF N

Paid Amt From Fasttrack in PF N

Total Paid Amt From Fasttrack in PF N

Claim amount of Zero Depreciation From Fasttrack in PF N

Voluntary deductible flag from FT From Fasttrack in PF N

Voluntary deductible amount From Fasttrack in PF N

Claim amount of garage cash From Fasttrack in PF N

Claim amount of Return to Invoice cover From Fasttrack in PF N

Claim amount of Consumables From Fasttrack in PF N

Reserve Amt From Fasttrack in PF N

Base Policy no. From Fasttrack in PF N

Intimation date From Fasttrack in PF N

Negative Customer From Fasttrack in PF N

Electrical accessories SI N

Non Electrical SI N

CNG/LPG SI N

IMT 23 N

IMT 47 N

Confine to site discount N

Limited to own premises N

Used for commercial purpose N

Handicapped discount N

Anti Theft discount N

Automobile Association discount N

Vintage car N

Fibre glass fuel tank N

Named PA cover N

PA cover for owner driver N

Trailer SI N

Unnamed PA cover N

Built in CNG Kit N

Built in LPG Kit N

Driving tuition N

Foreign Embassy N

Body colour N

Transaction date Y

Previous Insurer name N

NCB% on previous policy NTransfer of vehicle flag in previous policy N

Registration no. block 1 N




Page 8 of 33


No of persons driving the car New column need to be built in PF N

Marital Status New column need to be built in PF N

Occupation New column need to be built in PF N

Family SizeNew column need to be built in PF N

No of claims in last 3 yearsNew column need to be built in PF N

Category_name VIP customer Flag N

Category_ABB_name VIP customer category N

Count of Repair From Fasttrack in PF N

Count of Cash Loss From Fasttrack in PF N

Count of Total loss From Fasttrack in PF N

Count of Repair/Litigation From Fasttrack in PF N

Count of Cash Loss / Litigation From Fasttrack in PF N

Count of Total Loss / Litigation From Fasttrack in PF N

No.of Own Damage claim From Fasttrack in PF N

No.of Partial Theft claim From Fasttrack in PF N

No.of Total Theft claim From Fasttrack in PF N

No. of Personal Accident claim From Fasttrack in PF N

No.of Third Party claim From Fasttrack in PF N

Count of Paid and Closed From Fasttrack in PF N

Count of Closed From Fasttrack in PF N

Count of Pending From Fasttrack in PF N

Count of Award already complied From Fasttrack in PF N

Count of Call Centre From Fasttrack in PF N

Count of Closure For Lae Paymen From Fasttrack in PF NCount of Closure For Lae Payments From Fasttrack in PF N

Count of Dismiss In Default From Fasttrack in PF N

Count of Dismissed for default From Fasttrack in PF N

Count of Document Pending From Fasttrack in PF N

Count of Documents Pending From Fasttrack in PF N

Count of Duplicate Claim From Fasttrack in PF N

Count of Duplicate Claims From Fasttrack in PF N

Count of Exoneration From Fasttrack in PF N

Count of FINAL CLOSURE From Fasttrack in PF N

Count of Recovered From Fasttrack in PF N

Count of Reinstated Policy From Fasttrack in PF N

Count of Repudiation From Fasttrack in PF N

Count of Vehicle Not Reported From Fasttrack in PF N

Count of Withdrawn From Fasttrack in PF N

Count of Withdrawn After NFL From Fasttrack in PF N

Count of Wrong DoL From Fasttrack in PF N

Count of Wrong Nol From Fasttrack in PF N

Count of Wrong Policy From Fasttrack in PF N

Count of Additional Payment From Fasttrack in PF N

Count of Appeal From Fasttrack in PF N

Count of Appeal by Claimant From Fasttrack in PF N

Count of Court Award From Fasttrack in PF N

Count of Dismiss for default From Fasttrack in PF N

Count of Documents Received From Fasttrack in PF N

Page 9 of 33


Count of Settlement failed From Fasttrack in PF NCount of Vehicle Reported to Garage From Fasttrack in PF N

Claim no. From Fasttrack in PF N

Transfer of NCB Flag Yes/No N

Transfer of NCB % numeric NPlan name for Road side assistance N

Service type for RSAAs per the master of service list mapped to the RSA plan N

Plan name of Key protect N

Sum insured of Key protect N

Plan name of Personal belonging NSum insured of Personal belonging N

Flag of Engine protect plus N

Flag of Tyre protect plus N

Approved NCB NChannel loading NChannel discount NOther discount NOther loading N

RTO zoneA,B,C as per the mappping of RTO clustor

Y

Retention no.

Retention no. as per the policy no. i.e if policy no. 3001/51234452/03/000

NVehicleClassGrpCode N

Parameter Master will be a common master for Motor Equation & Add-on & decline pool

FR2.0 2.Relativity

Relativity stance can be define on the basis of different parameters which are define above

Example as below

DT_Relativity_Privatecar_Rollovertransaction

policyStartDate paramterName

parameterValue

Relativity

Oct 19, 2011 <= ..<= Oct 19, 2020

NCB% 35%-0.915

Oct 19, 2011 <= ..<= Oct 19, 2020

NCB% 45% -1.0509

Oct 19, 2011 <= ..<= Oct 19, 2020

NCB% =>50% -1.6833

Oct 19, 2011 <= ..<= Oct 19, Age 4 <= ..< 5 0.35

<If Any>

Page 10 of 33


2020Oct 19, 2011 <= ..<= Oct 19, 2020

Age 5 <= ..< 60.2621

Oct 19, 2011 <= ..<= Oct 19, 2020

Age 6 <= ..< 70.1766

Oct 19, 2011 <= ..<= Oct 19, 2020

Age 7<= 0

Oct 19, 2011 <= ..<= Oct 19, 2020

ModelCLustor

PM11.1422

Oct 19, 2011 <= ..<= Oct 19, 2020

ModelCLustor

PM21.1422

Oct 19, 2011 <= ..<= Oct 19, 2020

RTOClustor PL10.9749

Oct 19, 2011 <= ..<= Oct 19, 2020

RTOClustor PL2 0.7259

In the above example: Relativity define for Private car –Rollover transactionThere should be option to define the relativity on the basis of different parameter as an instanceExample of instance : DT_Relativity_Privatecar_Rollovertransaction_Age >3.1_Echannel

Under the parameter value there should be option to define the value with the below conditions, default condition should be “AND” if no codition mentioned

1. Between2. Equal to (=)3. Not equal to (<>)4. >5. =>6. <7. <=

Note:Effective date will be considered on the basis of policy start dateFR3.0 Severity Master (SR)

There should be instance for defining the Severity amount on the basis of different parameter.Instance can be define on the basis of Product, transction type & other parameters .There should not be any limits select the no. of parameters while define the instanceSeverity amount will be provided by the UW in the rules of the severity on the basis of different parameters



Page 11 of 33


Example table attached

Note:Effective date will be considered on the basis of policy start date

FR4.0 Target Loss Ratio (TLR) Master

There should be instance for defining the Target loss ratio on the basis of different parameter.Instance can be define on the basis of Product, transction type & other parameters.There should not be any limits select the no. of parameters while defining the instance

Value of the TLR will be provide by UW , in percentage value




FR5.0 Fixed Factor Master (FF)

There should be instance for defining the Fixedfactor on the basis of different parameter.Instance can be define on the basis of Product, transction type & other parameters.There should not be any limits select the no. of parameters while defining the instance

Value of the FF will be provide by UW , the same may be in percentage format or in decimal format both positive & negative numbers



Page 12 of 33


Note:Effective date will be considered on the basis of policy start dateFR6.0 Routemaster

Under the Route master, UW can define the instance on the basis of parameters including product to define the route for calculation of Basic OD rate & TP Premium



UW should have the option to define instance for Routemaster on the basis of parameters for each products with start date & end date logic

In routemap , there will be condition on the basis of which route map will be defineChange in the Routemaster of Add-on:

Route Master for Add-on covers should also be changed in line with the equation .Route master of Add-on will be define on the basis of individual Add-on cover , product wise by defining in the instance

Note: Effective date will be considered on the basis of policy start dateFR7.0 Fixed OD premium charges:

There will be master as ‘Fixed OD premium charges which need to be sent to PF along with the basic OD rates as an out put from blaze

The master will be define on the basis of Products & the calculation logic for the same will also be product specific

For GCV calculation logic will be as below

Fixed OD premium_GCV_Newtransction

effectiveDate paramterName paramet paramt paramet Amou

Page 13 of 33


erValueerName

erValue nt

Jun 16, 2011 <= ..<= Jun 16, 2020

GVW >12000

RTO_Clustor

All 27

Fixed OD premium =((XXX-12000)*YY/100)*(Eq Rate/IMT rate)Where , ‘XXX’ is GVW of the model‘YY’ is the amount from the above table The additional charges will be discount/loaded on the basis of the overall discount/loading compute between IMT_tariff & Final Basic OD rates

Other than GCV products, the below calculation logic will be as follows

effectiveDate paramterNameparameterVa lue

paramterName

parameterVa lue

paramterName

parameterVa lue

paramterName

parameterVa lue

Amount

Jun 16, 2011 <= ..<= Jun 16, 2020

Vechi le_Subclass_Code 1 Age <=5Carrying capaci ty

1<= ..< 18RTO_Clustor

Grid1L32 350

Jun 16, 2011 <= ..<= Jun 16, 2020

Vechi le_Subclass_Code 3 Age <=5Carrying capaci ty

18< ..< =36RTO_Clustor

Grid1L32 450

Fixed OD premium =XXX*(Eq Rate/IMT rate)

Where Where XXX is the value from the above table

The additional charges will be discount/loaded on the basis of the overall discount/loading compute between IMT_tariff & Final Basic OD rates

Under the parameter value there should be option to define the value with the below conditions, default condition should be “AND” if no condition mentioned


Note:Effective date will be considered on the basis of policy start dateFR8.0 Vehicle Insured Declared Value (IDV)

There should be instance for defining the depreciation percentage on the basis of different parameter.

Page 14 of 33


Instance can be define on the basis of Product, transction type & other parameters .There should not be any limits select the no. of parameters while define the instanceDepreciation percentage will be provided by the UW in the rules of the IDV on the basis of different parametersSystem has to depreciate the Showroom price & sent the vehicle IDV in the response after deduction of the depreciation as per the rule define

Sample instance given belowIDV master_Privatecar_Newtransction_Echannel

effectiveDateparamterName

parameterValue

Depreciation rate

Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band 0 <= ..<= .5 0.05

Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band .6 <= ..< =1.0 0.15

Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band 1.1<= ..<=2 0.20

Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band 2.1 <= ..<= 3 0.30

Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band 3.1 <= ..<= 4 0.40

Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band 4.1 <= ..<= .5 0.50Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band 5.1<= ..<= 6 0.55Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band 6.1<= ..<= 7 0.60Jun 16, 2011 <= ..<= Jun 16, 2020 Age Band =>7.1 0.65

Examples A BAge of the vehicle 2.3 yrs 5.4 yrsShowroom price 100000 100000Depreication rate as per rule define above 0.3 0.55

IDV to sent in Response 70000 45000

Under the parameter value there should be option to define the value with the below conditions, default condition should be “AND” if no condition mentioned


FR9.0 Equation of Basic Own damage

There will be 2 tables to defined the equation

Page 15 of 33


a. Generic Tableb. Exception Table

Under Generic table:There will be instance on the basis of different parameters for the same products eg, there may be instance of ‘GoodsCarryingVehicel_Rollovertransaction_PublicCarrier,etc

Basic own damage rate can be define by fetching the values from different master viz.Severity master,TLR master, fixedfactor master,etc as define in the routemaster

Example of Basic Own damage rate :Rate= if(Sourcesytem=genisys,{(EXP(FF+R1+R2+….)/(1+EXP(FF+R1+R2+….))*Severity/Target LR}/IDV

Where,‘EXP’ stands for the function of Exponential‘FF’ stands for the Fixedfactor value‘R1,R2,…’ stand for different parameters value‘Severity’ stands for the value derived from severity master‘Target LR’ stands for the value derived from LR master‘IDV’ stands for ‘vehicle insured value’ only

All the equation will be having a start date from which the same will be effective. If there is any modification in the equation, it will be having an end date & the new modified equation will having a Start date as the date of Modification.Start date will be the Policy inception date

If there is any conflict for the duplication of same rules, system should provide an alert to the UW team.

In the backend the original Rates of the policy will always be stored; i.e. the transaction will always store the rates at which that particular policy was issued.

Additonal Trailer OD rates for MISD & GCV product:

In MISD Product : If the No. of trailer > 0, OD rates for Additional trailer will be equal to basic OD rates provided by the Generic table/Exceptional table/IL_Tariff as the case may be. Any loading or discount on vehicle will also be applicable for trailer also

In GCV Product: For the OD rate of addional trailer in GCV Product, there will be separate table to update the rates on the basis of different parameters.No other loading or discount should be calculated on the OD rate of trailer.

Exceptional Table

Under exceptional table , UW can define instance to the basis of different parameter on the basis of productsThere should below conditions on the basis of which exceptional rules can be define using the different parameters & values,default condition should be “AND” if no condition mentioned

Page 16 of 33



By using the different parameters & above conditions, UW can formulate the exceptional rules to derive the basic OD rates on the below comparison

a. Min or Max of Generic or Exception table b. Min or Max of IL_Tariff or Exceptionalc. Exception rate onlyd. *Dealer flexi disount/loading % on rates from Generic table or IL_Tariff (Grid 3)e. **Discount subject to x% on IMT_Tariff rates f. **Loading subject to x% on IMT_Tariff ratesg. Not Applicableh. Channel Discount /Loading (Grid 5)i. Discount/Loading on IMT tariff (Grid 2)

*D.For Dealer flexi disount/loading % on rates of generic table or IL_tariff, UW will define certain % , if the user select the other loading/discount in pathfinder, the proposal will check the exceptional rules & if the percentage is within the define limit, there will be no approval trigger in pathfinder for the proposal & the rates will be calculated considering the IMT rates*discount/loading %. In response from blaze ,approval trigger flag to be given to PF.‘Y’ for approval to trigger‘N’ for no approval to trigger

Dealer Flexi Discount Example 1 Example 2Table Rate RateGeneric Equation table/IL_Tariff 0.0301 0.0195IMT tariff 0.0314 0.0314

Exceptional table(dealer flexi

10% discount on IMT_tariff subject to Max of 40% on IMT_Tariff

10% discount on IMT_tariff subject to Max of 40% on IMT_Tariff

Discount% of Generic/IL tariff on IMT 4% 38%User Input discount 10% 10%Total discount on IMT 14% 48%Final Rate 0.02584 0.01884

Dealer flexi loading Example 1 Example 2

Page 17 of 33


Table Rate RateGeneric Equation table/IL_Tariff 0.0301 0.0495IMT tariff 0.0314 0.0314

Exceptional table(dealer flexi

15% dealer loading

15% dealer loading

Discount% of Generic/IL tariff on IMT 4% -58%User Input loading -15% -15%Total Loading 11% -73%Final Rate 0.03485 0.05432

Negative no. indicate loading

Example of Approval flag:

Approval flag logicDealer Flexi Discount define as <=10% Discount % Approval flaguser input 9.90% Nuser input 10% Nuser input >10% YDealer flexi loading define as =>15% Loading % Approval flaguser input => 15% Nuser input 16.00% Nuser input <15% Y

If the proposal doesn’t satisfy the condition under dealer flexi discount & the user input other discount, final rate to be compute as per above example. Approval flag to be sent as ‘Yes’ for such cases.Message for the deviation to be sent as below , ‘Other discount deviation is beyond the maximum limit, maximum limit of other discount deviation is 0% for the proposal’

If the proposal satisfy the condition under dealer flexi discount & the user input other discount greater than the define limit , final rate to be compute as per above example. Approval flag to be sent as ‘Yes’ for such cases.Message for the deviation to be sent as below , ‘Other discount deviation is beyond the maximum limit, maximum limit of other discount deviation is <xx%> for the proposal’Where xx% is the define limit under dealer flexi exceptional scenario

Page 18 of 33


If the proposal doesn’t satisfy the condition under dealer flexi loading & the user input other loading, final rate to be compute as per above example without considering max/min logic. Approval flag to be sent as ‘No’ for such cases

If the proposal satisfy the condition under dealer flexi loading & the user input other loading lesser than the define limit, final rate to be compute as per above example. Approval flag to be sent as ‘Yes’ for such cases.

Message for the deviation to be sent as below , ‘Other loading deviation is less the minimum limit, minimum limit of other loading deviation is <xx%> for the proposal’Where xx% is the define limit under dealer flexi exceptional scenario

**E & F.Discount/loading subject to x% on IMT tariff : where discount/loading updated against exceptional rules, the rates derived from the generic table to be further discount/loaded by the IMT rates *discount/loaded % define in the rules.Further the discounted/loaded rate should be validate from the IMT_Tariff master by providing additional discount as updated under ‘subject to max’.

Subject to Max should be optional

The total discount should be calculate as below (sample attached)

Step 1:On generic/IL tariff rate- Discount/Loading to be compute on IMT_TariffGeneric rate:0.2202 IMT rate:0.3146Discount on IMT rate =(1-GR/IMT)= 30%

Sstep2:Additional discount/loading to be added in the derived discount/loading on IMTDiscount from step 1: 30%Additional Discount :5% on IMTTotal Discount on IMT =30+5=35%

Step 3:Discounted Rate to be derived on IMT_TariffTotal discount from step 2: 35%IMT rate:0.3146Discounted Rate:0.2045

Step 4:Derived Max discounted rate in IMT as define in SubjectIMT rate: 0.3146Max discount allowed on IMT:40%Discounted rate:0.1887

Step 5:Max of Step 3 & 5Final rate:0.2045

For Additional Loading upto Step 3 to be followed of above workflow

Step 6:in case of user input also along with additional discount by UW

Generic rate:0.2202 IMT rate:0.3146

Page 19 of 33


Discount on IMT rate =(1-GR/IMT)= 30%Additional discount (UW input)=5% on IMTUser Input (other discount)=4%

Total Discount=(30+5+4)% =39%Discounted rate=0.3146*(1-39%)=0.1919

Step 7:Max of Step 4 & 6 ie.01919 (Approval to be triggered as the same is not define under dealer flexi)

Scenario 2 :In case of dealer flexi along with additional discount

Generic rate:0.2202 IMT rate:0.3146Max on IMT= 40%Discount on IMT rate =(1-GR/IMT)= 30%Additional discount (UW input)=5% on IMTDealer flexi <=5%User Input (other discount)=4%

Total Discount=(30+5+4)% =39%Discounted rate=0.3146*(1-39%)=0.1919540% on IMT:0.18876Final rate =Max of (0.18876, 0.1919) =0.19195

(No Approval to be triggered as the same is define under dealer flexi

Sample attached

Discount in IMT rate option should be non mandatory

G. Not Applicable: If the rule define with the result as Not Applicable, user should not be allowed to create the proposal & pop up to given to the user.Pop up message: ‘Transaction is not allowed for the proposal, please contact underwriter”

h.Channel discount/Loading :

Page 20 of 33


If the exceptional updated under channel discount or loading, the discount or loading % to be flat% as define in value. The discount or loading % will be on the IMT tariff rate.If the user select the channel discount/loading in PF, the flat % as define in the exceptional rule under the channel discount/loading parameter will be updated against the basic OD rate.Example given below

IMT rate

Basic OD rate without channel discount

Channel loading %/(discount%)

Basic OD rate after channel disc/loading (Final Basic OD Rates)

Remarks

0.03314

0.02651 (0.10) 0.023196

channel discount =10% of IMT rate hence final basic OD rate= 0.2651-10%*IMT

rate

0.03314

0.02651 0.10 0.029824

Channel loading =10% of IMT rate hence final basic

OD rate =0.2651+10%*IMT rate

Note: if in the same proposal ,different exceptional rules are applicable , the final impact will be considered taking the total discount or loading on IMT tariff as given below

IMT rate

Rate from Generic

tableDealer

flexi

Channel

discount

Total disc/lo

adFinal basic

OD rate Remarks

0.03314 0.02651 (0.10) (0.05) (0.15) 0.021539

Total discount on IMT -15% hence final OD rate =0.2651-15%*IMT rate

0.03314 0.02651 (0.10) (0.10) (0.20) 0.019882


0.03314 0.02651 0.00 (0.10) (0.10) 0.023196


0.03314 0.02651 0.00 0.00 0.00 0.02651

Total discount on IMT -0% hence final OD rate =0.2651

0.03314 0.02651 0.10 (0.05) 0.05 0.028167

Total loading on IMT =10-5=5% hence final OD rate =0.2651-15%*IMT rate

0.03314 0.02651 0.10 0.05 0.15 0.031481

Total loading on IMT -15% hence final OD rate =0.2651+15%*IMT rate

Channel discount can be club with other exceptional also

j.Discount/Loading on IMT tariff (Grid 2): with this option user can define the rate by providng the discount/loading % on IMT tariff. Examples given below. The final Basic OD rates will be reduced /increased as per the discount/loading % provided

IMT ratesLoading/(Discount) on IMT tariff

Final OD rate

0.033191 10% 0.03651010.033191 -10% 0.0298719

Page 21 of 33


0.033191 0% 0.033191

If Discount/loading on IMT tariff is applicable under the exceptional scenario, than for the computation of Final rate, summation of all the exceptional scenario discount /loading (Additional discount/Loading, Dealer flexi discount/loading,Channel Discount/Loading & Discount/loadingon IMT) to be compute on IMT tariff rate only.

Calculation logic of Exceptional scenarios

ScenariosWith Discount/Loading on IMT

Without Discount/Loading on IMT

IMT rate 3% 3%

Generic rate 2% 2%

Additional Discount 10% 10%Dealer flexi (other discount) 5% 5%

Channel Discount 5% 5%

Discount on IMT 10% 0%

Final rate 0.02100 0.01800

Common rules for all exceptional for basic OD rates

For all transactions, exceptional table to be hit first if in routemap the same is ‘true’, post which it will hit the generic or IL_tariff as per the rules define .

All the exceptional call will be on the basis of Start & end date. If there is any modification in the existing exceptional call, the same will have end date & the new logic will be given the start date as end date +1.

Details of exceptional rules which need to be user input at transaction level directly to be considered for providing Final rates as below

Exceptional CategoriesUser Input

To be part of Renewal rates

during bulk calculation

To be part of Renewal rates during single transaction

Min or Max of Generic or Exception table No Yes Yes

Min or Max of IL_Tariff or Exceptional No Yes Yes

Exception rate only No Yes Yes

Dealer flexi disount/loading % on rates from Generic table or IL_Tariff (Grid 3)

Yes No Yes

Discount subject to x% on IMT_Tariff rates No Yes Yes

Loading subject to x% on IMT_Tariff rates No Yes Yes

Not Applicable No Yes Yes

Page 22 of 33


Channel Discount /Loading (Grid 5) Yes No Yes

Discount/Loading on IMT tariff (Grid 2) No Yes Yes

Approval triggers flag to be sent to Pathfinder along with the other details during response. Approval flag to be sent as “Yes “ if the user select Other discount in pathfinder.

For Dealer flexi, there is user input & if the value is equal or within the define range , Approval trigger flag should be ‘No’ but if the value provided beyond define range ,Approval flag to be updated as ‘Yes’.

For Channel discount/Loading ,Approval flag will always be ‘No’ Discount rate on IMT tariff to be sent as Negative Loading rate on IMT tariff to be sent as Positive All the percentage to be define in decimal If at the time of invoke of DT if there is more than 1 DT , than the invoke should be done on the latest

DT

Comma Separator:

o Multiple parameter value can be uploaded & downloaded in a single column with line break-upSample :

Parameter name Parameter value RatesModel cluster PM1

PM3PM4

0.0123


Excel upload functionality :

There should be excel upload & download functionality for all the rules update in the system. Upload: UW can upload the rules in the excel format along with the line breakup option under the parameters

Download: while downloading the excel for the tables, parameters value will come as define in the system

Functions:The below functions should be available to make equation

Functions for Formula SignAddition +Subtraction -Multiply *Divide /square Root

Page 23 of 33


Equal =Not equal <> Greater than > Less than < Percentage %Brackets [],{},()Exponential Log Antilog Sin Cosine Cos Tan Cosec Cot

Response for All Package policy from blaze to PF a. Basic OD Rate. b. Basic OD rate of Trailer.c. Fixed OD premium.d. Basic TP Premium.e. Basic TP premium for attached trailer in GCV & MISD products.f. Discount/Loading rate on IMT tariff (Positive (+) value for loading & negative (-) for discount .g. NCB Applicability.(if the Approved NCB flag received in request as ‘True’, by default in responser NCB applicability should be sent as ‘Yes’, no NCB applicability rules to be check for such proposal ) Yes If the response is given as ‘N/A’, Remarks should also be sent in Response

h. Approval triggers flag for other Loading/discount (including dealer flexi) i. No. of Claim in previous year policy ( to be sent if previous policy has NCB protection coverage).j. Error message:

•if the above value not calculate, in error message name of the master where value not define to be sent to pathfinder.

Example: as per equation LR master to be refer but in the LR master the parameters are not found for the proposal hence in error message below statement should be sent “Value in <xxxx> master not define,pls contact the underwriter”

•In case of failed response due to validation of rate out of the min-max discount /loading rate in blaze , Pop up to be given to PF as ‘other loading/discount cannot exceed the tariff rate’

k. Vehicle Insured Declared value (IDV) – Only IDV of the vehicle to be sent in sent in the responsel.Add-on cover response (including the existing Add-on covers)

i. Rates for Engine Protect plusii. Rates for Tyre protect

iii. Rates for Key Protectiv. Rates for Loss of personal belongingv. Premium of Road side assistance

Page 24 of 33


m. Exceptional scenario (as define in exceptional table . for OD n.Exceptional scenario (as define in exceptional table . For TP

Response for All liability only policy from blaze to PF a. Basic TP Premium.b. Basic TP premium for attached trailer in GCV & MISD products. c. Error message:



d. Exceptional scenario (as define in exceptional table . ) -As per the TP exceptional table

Change in exceptional table for Add-on: For Add-on , exceptional table to hit first, post which it will hit the equation /base/tariff as per the rules

define There should be additional rule in exceptional table of add-on to provide additional discount/loading on the

rates of add-on covers.Discount/loading on specific add-on cover can be define by taking the different parameters as attached under FR1.0. UW can define the discount/loading % in the exceptional master & the rate to be reduced/increased taking Equation/base /Tariff rates whichever is applicable

Rates as per Equation/base

rate/Tariff

Discount/Loading as per exceptinal rules

Final Add-on rates Remarks

0.02313 (0.10) 0.020817

Rates reduced

by discount

ed %

0.02313 0.10 0.025443

Rates increase

d by loading

%

0.02313 0.00 0.02313No

change in rates

Under the exceptional rules , discount or loading can be given on specific Add-on with the reference of other add-on covers also by define other add-on as one of the parameters .Example given below

Exceptionalmaster_PrivateCar_Newtransction_Return to Invoice

effectiveDateCovername

Covername

ParameterNAme

ParameterValue

Exceptional scenario

Value

Page 25 of 33


Jun 16, 2011 <= ..<= Jun 16, 2020

Zero Depreciation

Consumables N/A N/A

Additonal discount 10%

Jun 16, 2011 <= ..<= Jun 16, 2020

Zero Depreciation Garage cash N/A N/A

Additonal loading 10%

There should below conditions on the basis of which exceptional rules can be define using the different parameters & values,default condition should be “AND” if no condition mentioned


DT of Add-on can also be updated on the basis of different parameters

If at the time of invoke of DT if there is more than 1 DT , than the invoke should be done on the latest DT updated

Note:Effective date will be considered on the basis of policy start dateFR10.0

IL Tariff :There will be master to upload the IL tariff in blaze.If as per the route master, value to be fetch from IL tariff, the master should be referIL tariff will be define on the basis of instance as per below .Instance example:ILTariff_Privatecar_Newtransaction_Echannel

Instance can be define with different parameters

The value in IL tariff will be the discount/loading % which need to refer the IMT tariff for final basic OD rate.

IMT rate

IL tariff rate loading/(Discount)

Final basic

OD rate Remarks0.03314 (0.10) 0.02983 IMT tariff rate reduced by 10%0.03314 .10 0.36454 IMT tariff rate increased by 10%0.03314 0.00 0.03314 no loading or discount

FR11.0

Reference to IMT Tariff & Validation master

The Final OD rates derived after all the exceptional calls , should be validate from the Validation master.

Page 26 of 33


At any point of time the Final Rates should not be beyond the define limits of the Validation table.

In case of failed response due to validation of rate out of the min-max discount /loading rate in blaze , Pop up to be given to PF as ‘other loading/discount cannot exceed the tariff rate’

There will be additional master as ‘IMT_Tariffmaster’.

.All the discount/loading should refer the IMT tariff master for the addition/reduction of the equation rates.

FR12.0

NCB master : (Applicable for Renewal transaction only)

There should be NCB master to evaluate the applicability of NCB to be givenInstance can be defined for the NCB applicability. Instance will be define on the basis of different parameters, the result output will be as below

Yes No N/A

Where,‘Yes’ implies NCB is applicable‘No’ Implies NCB should is not applicable‘N/A’ implies transaction should not be allowed, there should be option to provide the remarks by UW for N/A status ,the tag should be ‘NCBRemarks’

If the ‘Approved NCB flag’ received in request as ‘True’, by default in response, NCB applicability should be sent as ‘Yes’, no NCB applicability rules to be check for such proposal

NCB applicability should be check on the basis of the previous policy During endorsement, claim on the previous policy need to be check & value should be updated to status to be updated to PF

Post deriving the NCB applicability, PF will calculate the NCB % as per the current logic.

In defining the instance for NCB , the below condition should be allowed to define the rules,default condition should be “AND” if no condition mentioned .

1. Max of 2. Min of

Page 27 of 33



If there is no value found against the parameters of the proposal , the default value for NCB applicability to be captured as ‘YES’

Count of Claim to be also sent hence there should be table to provide the No. of claim in previous policy .UW should be able to define the different parameter for getting the summation of count of claim as per below example where summation of Own damage+total theft+PA claim where no count of Paid& close +Count of Pending > 0 to be sent as a response (Applicable for Renewal transaction only)

Count of claim to be provide for those case where NCB protect was taken in the previous policy

NCB_Applicable_Count of Claim_Private car_Renewal

effectiveDate paramterName parameterValueCount of claims

Jun 16, 2011 <= ..<= Jun 16, 2020

Count of Paid and Closed+ Count of Pending

>0

No.of Own Damage claim+ No.of Total Theft claim+No. of Personal Accident claim

FR13.0

Renewal calculation

There should be functionality to provide the Basic OD rate & TP premium for bulk proposal queries, which will be utilized for the bulk calculation of Renewal casesPF will sent the request in bulk on the basis of product, blaze to return the basic od rates considering the impact as per the rules define under different masters in blaze

Response for All Package policy from blaze to PF a. Basic OD Rate. b. Basic OD rate of Trailer.c. Fixed OD premium.d. Basic TP Premium.e. Basic TP premium for attached trailer in GCV & MISD products.f. Discount/Loading rate on IMT tariff (Positive (+) value for loading & negative (-) for discount .g. NCB Applicability.(if the Approved NCB flag received in request as ‘True’, by default in responser NCB applicability should be sent as ‘Yes’, no NCB applicability rules to be check for such proposal )

Page 28 of 33


YesIf the response is given as ‘N/A’, Remarks should also be sent in Response under the tag -‘NCBRemarks’

h. Approval triggers flag for other Loading/discount (including dealer flexi)i. No. of Claim in previous year policy ( to be sent if previous policy has NCB protection coverage).j. Error message:



•In case of failed response due to validation of rate out of the min-max discount /loading rate in blaze , Pop up to be given to PF as

‘other loading/discount cannot exceed the tariff rate’ k. Vehicle Insured Declared value (IDV) – Only IDV of the vehicle to be sent in sent in the response 20000l.Add-on cover response (including the existing Add-on covers)

i. Rates for Engine Protect plusii. Rates for Tyre protect

iii. Rates for Key Protectiv. Rates for Loss of personal belongingv. Premium of Road side assistance

m. Exceptional scenario (as define in exceptional table . for OD)n.Exceptional scenario (as define in exceptional table For TP)

Response for All liability only policy from blaze to PF a. Basic TP Premium.b. Basic TP premium for attached trailer in GCV & MISD products. c. Error message:



d. Exceptional scenario (as define in exceptional table . ) -As per the TP exceptional table

‘Dealer flexi discount/loading’ to be ignored at the time of bulk calculation of renewal

If in the NCB applicable master ‘N/A’ is define against the rules, rates for the same should also be calculate but along with the rates, additional remarks should also be sent to PF which will be updated by UW against the rules (optional).NCB Flag to be updated as ‘No’ with NCBRemarks (For renewal notice only)

FR14.0

Version manamgement

There should be option to export the reports of changes done in blaze.Reports should be extract in excel format on the basis of date range along with the details of changes & the user

Page 29 of 33


details who has made the changes with date & time

FR15.0

Basic Third Party premium: Currently , Basic TP premium is calculated in PF which will be stopped & in response from blaze Basic TP premium also to be provided to pathfinder.

There should be 2 table for Basic TP rates as below Generic TP table Exceptional TP table

Under Generic TP table: Instance for each product can be define on the basis of different parameters , there should be 2 values to be define i.Fixed TP ii.Variable TP

Under Fixed TP: There will be fixed amount to be given Under Variable TP: there will be reference to be the parameters value to calculate the premium . Variable TP premium will be calculate on the value sent by the proposal against the parametersFinal Basic TP rates will be summation of Fixed TP & Variable TP.

Example Fixed TP =1000Variable TP : Upto 6 carrying capacity :Rate =200In the proposal , carrying capacity = 3

Basic TP premium = Fixed TP +( carrying capacity *rate) =1000+(3*200)

=1000+600 =1600

Sample Instance attached for PCV & Private car package policy

Exceptional TP table:There will be exceptional TP table which will be having the below dropdowm

Min or Max of Generic TP or Exceptional TP Only Exceptional TP Discount/Loading % on Fixed TP Discount/Loading % on Variable TP Discount/Loading % on Variable TP & Fixed TP Discount/Loading Amount on Fixed TP Discount/Loading on Amount on Variable TP Discount/Loading on Amount Variable TP & Fixed TP

In defining the instance for basic TP , the below condition should be allowed to define the rules,

Page 30 of 33


default condition should be “AND” if no condition mentioned .


There should be instance to define the Basic TP premium of trailer attached to GCV & MISD products which should be multiplied with the No. of Trailer selected in PF In response , TP premium of

FR16.0

Applicability for Add-on cover

In Add-on eligible master, there should be option to make the selection of Add-on covers on the condition of selecting other add-on cover mandatorily

Scenario: RTI or Consumables can be selected only if Zero depreciation selected

Example 1 : User can select Return to invoice cover if Zero depreciation also selected in the proposalExample 2. User can select consumable cover if Zero depreciation also selected in the proposalExample 3. User can select stand alone cover of Zero depreciation only.

Hence as per the above example s, there should be option to select the cover on standalone basis or in package with other add-on covers

DT_Add-onApplicability

effectiveDate

Covername Covername ApplicablecoverApplicablecover

Jun 16, 2011 <= ..<= Jun 16, 2020

Zero depreciation

Consumables ReturntoInvoice

NCBprotect

Jun 16, 2011 <= ..<= Jun 16, 2020

Zero depreciation

N/A

Consumbles

N/A

Jun 16, 2011 <= ..<= Jun 16, 2020

Zero depreciation

ReturntoInvoice

RSA

N/A

FR17. Endorsement /Cancellation

Page 31 of 33


0 During Non nil endorsement , proposal to be hit to blaze for the response as per the cut-off date logic applicable for pathfinder.During Nil Endorsement , proposal will not hit blazeDuring Cancellation of the policy, proposal will not hit blaze

Fr18.0

Simulator :

There should be simulator available in blaze to test the developed functionality. On the basis of parameters & the functionality mentioned in the above FRs user should be able to get the corresponding response as per the new response mentioned in the document + the existing response related to decline pool & add-on covers

4.2 Non-functional requirementsReq. ID Requirement Description Notes/ IssuesNFR1.0 <Requirement Description > <If Any>NFR2.0 <Requirement Description > <If Any>

4.3 UI requirementsReq. ID Requirement Description Notes/ IssuesUFR1.0 <Requirement Description > <If Any>UFR2.0 <Requirement Description > <If Any>

4.4 Reporting requirementsReq. ID Requirement Description Notes/ IssuesRFR1.0 <Requirement Description > <If Any>RFR2.0 <Requirement Description > <If Any>

4.5 Legal and compliance requirementsReq. ID Requirement Description Notes/ IssuesLFR1.0 <Requirement Description > <If Any>LFR2.0 <Requirement Description > <If Any>

4.6 Other requirementsReq. ID Requirement Description Notes/ IssuesOFR1.0 <Requirement Description > <If Any>OFR2.0 <Requirement Description > <If Any>

Page 32 of 33


5. Additional Information

5.1 Impact of CR on other interfaces or systems

<Provide the impact analysis on other interfaces/ systems>

5.2 Type of Change

Nature of Request New/ Modify

Function Yes/ NoModule Yes/ NoReport Yes/ NoProgram Yes/ No

6. Appendix

Page 33 of 33

equation modeling

Documents

business need

business processes5

business benefits5

business processes3

business process overview4

business benefits flexibility

basic od rate basic

motor products