Day Based
This method of calculation for premiums, adjustments and surcharges applies when the amount interpretation of the premium schedule is 'Specific'. In this method, the configured amount applies for the number of days specified in the premium schedule.
The calculation logic for determining the amount for a calculation period segment is described in the image below:
This calculation method supports the following approach:
The Daily amount is the configured amount value divided by the number of days specified in the premium schedule. The amount is computed by multiplying the daily amount by the actual number of days the person or object is enrolled in the calculation period segment.
Consider some examples to understand the calculations for this method.
| Each calculation period below will be identified as a single calculation period segment during the premium calculation process |
Configuration
The default time periods are defined as:
| Default Time Periods | ||
|---|---|---|
2015 - 1 |
1/1/2015 |
30/6/2015 |
2015 - 2 |
1/7/2015 |
31/12/2015 |
2016 - 1 |
1/1/2016 |
30/6/2016 |
2016 - 2 |
1/7/2016 |
31/12/2016 |
The calculation periods are defined as:
| Alias | Start Date | End Date | CP Reference Date |
|---|---|---|---|
Jan'15 |
1/1/2015 |
31/1/2015 |
1/1/2015 |
Feb'15 |
1/2/2015 |
28/2/2015 |
1/2/2015 |
… |
… |
… |
… |
Dec'16 |
1/12/2016 |
31/12/2016 |
1/12/2016 |
… |
The premium schedule lines that are associated to BASIC PLAN and COPAY PLAN are defined as:
| Premium Schedule Lines - BASIC PLAN Amount interpretation: Specific Number of Days: 7 |
|||
|---|---|---|---|
Default Time Period |
Age From |
Age To |
Premium |
2015 - 1 |
- |
- |
20 |
2015 - 2 |
- |
- |
20 |
2016 - 1 |
- |
- |
30 |
2016 - 2 |
- |
- |
30 |
| Premium Schedule Lines - COPAY PLAN Amount interpretation: Specific Number of Days: 7 |
|||
|---|---|---|---|
Default Time Period |
Age From |
Age To |
Premium |
2015 - 1 |
0 |
49 |
30 |
2015 - 1 |
50 |
150 |
50 |
2015 - 2 |
0 |
49 |
30 |
2015 - 2 |
50 |
150 |
50 |
2016 - 1 |
- |
- |
30 |
2016 - 2 |
- |
- |
30 |
Example Calculation
Consider the situation when the policy is enrolled for the enrollment product from 21/4/2015 to 10/3/2016. The calculations in this scenario are spanning over two periods - the calendar year 2015 and calendar year 2016
| Contract Start Date | Contract End Date | Contact Reference Date |
|---|---|---|
- |
- |
- |
Enrollment Product |
Policy Enrollment Product Start Date |
Policy Enrollment Product End Date |
BASIC PLAN |
21/4/2015 |
10/3/2016 |
The premium calculations for the year 2015 and 2016 that apply to the policy in this situation are as shown in the table below.
| Calculation Period | Premium | Calculation |
|---|---|---|
April'15 |
28.57 |
20/7*(10) |
May'15 |
88.57 |
20/7*(31) |
June'15 |
85.71 |
20/7*(30) |
July'15 |
88.57 |
20/7*(31) |
Aug'15 |
88.57 |
20/7*(31) |
Sep'15 |
85.71 |
20/7*(30) |
Oct'15 |
88.57 |
20/7*(31) |
Nov'15 |
85.71 |
20/7*(30) |
Dec'15 |
88.57 |
20/7*(31) |
Jan'16 |
132.86 |
30/7*(31) |
Feb'16 |
124.29 |
30/7*(29) |
Mar'16 |
42.86 |
30/7*(10) |
The amount for each calculation period is calculated based on the number of (enrolled) days in the calculation period.
May'15 = Daily Amount * Calculation Period Days= 20/7*(31).
June'15 = 20/7*(30) and so on.
From the Jan'16 calculation period onward the premium amount changes to 30.00 per 7 days.
For the Mar'16 the amount is prorated to 30/7*(10).
Different premiums within the Calendar Year
This scenario is possible when the reference date changes with the calculation period within the calendar year
| Contract Start Date | Contract End Date | Contact Reference Date |
|---|---|---|
- |
- |
- |
Enrollment Product |
PEP Start Date |
PEP End Date |
COPAY PLAN |
3/3/2015 |
- |
A person is enrolled from 3/3/2015 onward for the enrollment product COPAY PLAN, the premium amount that applies for the person at the time of enrollment is 30.00 per week. The premium of 50.00 weekly applies when the person turns 50. Suppose, the person’s age is computed as 50 years starting from the calculation period of July'15. Then the premiumcalculations for the person in the year 2015 are:
| CP | Premium | Formula |
|---|---|---|
Mar'15 |
103.29 |
30/7*(29) |
Apr'15 |
128.57 |
30/7*(30) |
May'15 |
132.86 |
30/7*(31) |
June'15 |
128.57 |
30/7*(30) |
July'15 |
221.43 |
50/7*(31) |
Aug'15 |
221.43 |
50/7*(31) |
Sep'15 |
214.29 |
50/7*(30) |
Oct'15 |
221.43 |
50/7*(31) |
Nov'15 |
214.29 |
50/7*(30) |
Dec'15 |
221.43 |
50/7*(31) |
The premium amount 30 per 7 days applies for the calculation period from Mar'15 up to and inclusive June'15. Similarly, the amount from July'15 to Dec'15 is given by 50/7 per day.