Loading Fee

An increase in the premium charged to the insured for a specific period, such as two years after the insurance policy becomes active. The primary reason for this fee is the increased risk associated with the aging of the vehicle’s engine. The rules for the loading fee are as follows:

For all-risk insurance products, a 5% annual premium increase is applied to vehicles over 5 years old.
For Total Loss Only (TLO) insurance, a 5% annual increase applies to vehicles aged 5, 10, and 15 years, according to each insurance company’s policy.