Some comments on Polarization Index.
Background
Electronic Polarization
When atoms are placed in an electric field, the electrons are displaced toward the anode (positive) from their unstressed positions, and the nucleus is displaced toward the cathode (negative). Due to the much higher mass of the nucleus, this displacement is less than that of the electrons. This off center displacement is call an induced dipole because the charges return to their previous position when the field is removed. This mechanism is considered to be perfectly elastic. Although it is not perfectly elastic because not all of the displacement energy is returned to the system. This loss is referred to as the dielectric loss in insulation systems and it is also a function of frequency. In the case of zero frequency (DC) this loss is insignificant.
There are other types of polarizations and these are atomic, orientation and space charge. Space charge is the type of polarization caused by cosmic radiation or thermal deterioration.
Dielectric Absorption
When making a DC insulation test on a material used in the insulation system of motors, generators or cables, there are three components of currents- the leakage current, the capacitive charging current and the dielectric absorption current. The electronic polarizations (dipoles) result in polar molecules and molecule chains within the insulation system. As mentioned before the energy used in creating the dipoles is reversible and this energy can be released upon the removal of the applied voltage. It is this energy that causes the voltage to reappear at the electrodes (plates) after the stored energy of the capacitance has been dissipated by a short circuit and the short circuit removed.
The storage of energy in the dielectric (absorption current) occurs at a much slower rate and it is this reason that the test specimen should be short circuited for at least as long as the test and the recommended time for the short is four times the length of the test. This is particularly important if the leakage current is small. In other words there is a lot of polarizations occuring in the insulation system and unless it is discharged properly, a DC voltage will reappear in the system.
The time constant of the polarization for a material is a function of the composite nature of the test specimen. It should be emphasized that the the polarization mechanism are only small fractional responses. However they are the basis for the time dependence decrease in current for the test specimen. The longer the item is under test, the smaller the value of current flowing and creating dipole moments. Now of course a large value of leakage current(low resistance) will mask this absorption current.
Time-Resistance Method of Testing Electrical Equipment
Basically the condition of the insulation system is determined by comparing the insulation reading at two different times during the test. This comparison makes use of the fact that relatively "good" or "clean" insulation systems will show an increase in resistance with time. The longer the time, the less energy is going into arranging the dipole moments in the insulation system. This comparison is also useful because it is a dimensionless quanity. (resistance/resistance or current/current)
The theory is that good and clean insulation will show an increase in resistance with time-that is the absorption current will not be masked by the leakage current. On the other hand if the absorption current is masked by moisture or other contamination of the insulation system, the insulation resistance will have a relatively flat characteristic.
In summary, if the insulation system is clean and dry, the insulation resistance will increase with time( a smaller current). An insulation system that is contaminated with water, oil or is weak will show little if any increase with time.
James G. Biddle (now AVO Corp. of Dallas, TX) publishes the following table for the Dielectric Absorption Ratio (Polarization Index)
Condition 10:1 Min Ratio
Dangerous < 1
Poor <1.5
Questionable 1.5-2.0
Fair 2-3
Good 3-4
Excellent > 4
I have given the ratios for the 10/1 min. test. A 60sec/30 sec. test is also made and the corresponding values are

from top to bottom) <1.1, 1.1-1.25, 1.25-1.4, 1.4-1.6 and > 1.6. Many technicians prefer the shorter test times especially if they have a hand crank test set.
Some References
"A Stitch In Time..." by James G. Biddle pub. 21-P8
Insulation Testing by D-C Methods by James G. Biddle pub. 22t1a-1975
Principles of Dielectric Engineering, by Andrew Blanck, Rutherford Research Products Comapany
The Characteristics of Insulation Resistance by Sydney Evershed, presented to Institute of Electrical Engineers, London, 27 Nov., 1913