Page 164 - Motor Insurance Ebook IC 72

The Insurance Times

following rates of depreciation are applied for
replacements of parts for partial loss claims for all
categories of vehicles/accessories.
1. Depreciation for all rubber/nylon/plastic parts, tyres
and tubes, batteries and airbags 50%
2. Depreciation for all fiber glass components 30%
3. Depreciation for parts made of glass Nil

Rates for depreciation for all other parts including

wooden parts is as follow:

Age of the Vehicle % of Depreciation
Not exceeding 6 months Nil

Exceeding 1 year but not exceeding 2 years 10%

Exceeding 2 years but not exceeding 3 years 15%

Exceeding 3 years but not exceeding 4 years 25%

Exceeding 4 years but not exceeding 5 years 35%

Exceeding 5 years but not exceeding 10 years 40%

Exceeding 10 years 50%

This depreciation table also forms part of the policy
terms.

8. Geographical Area: For the purpose of rating the
whole of India has been divided
Into following zones depending on the location of
the officer or registration or maximum use of the
vehicle: Private cars/motorized two wheelers/

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