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Premium calculation

Discount on the item price​

warning

If you apply a discount to the item price, the amount of the premium must be calculated on the actual amount paid by the customer.

Computing mode : Item vs Subscription​

Depending on the insurance contract, the insurance must be calculated from each item separately, or from the sum of the items cart.

You need to implement the right computing mode.

  1. Item (default) : The insurance is calculated on each item of the order.
  2. Subscription : The insurance is calculated on the total amount of the order.
// Item mode
{
    "order_date": "2025-01-01",
    "order_reference": "123456",
    "order_currency": "EUR",
    "order_amount": 45,
    "items": [
        {
            "number": "000001",
            "label": "item1 description",
            "insurance_amount": 5,
            "price": 40
        }
    ],
    "buyer_email": "johndoe@example.com",
    "buyer_firstname": "John",
    "buyer_lastname": "Doe"
}
// Subscription mode
{
    "order_date": "2025-01-01",
    "order_reference": "123456",
    "order_currency": "EUR",
    "order_amount": 45,
    "insurance_amount": 5,
    "items": [
        {
            "number": "000001",
            "label": "item1 description",
            "price": 40
        }
    ],
    "buyer_email": "johndoe@example.com",
    "buyer_firstname": "John",
    "buyer_lastname": "Doe"
}
info

When using computing mode by Item (1), specifying the insurance amount insurance_amount at the root of the subscription is optional but still possible. If set, it will be used as a check on the sum of the items' insurance amounts.

What's the difference?​

Where rate bands are applied, the insurance calculation method can have an impact on the premium amount.

Also, depending on the terms of the contract, reimbursement ceilings can be managed at underwriting or insured item level.