Whenever a vehicle claim is reported, the payouts are made after considering the reduced value of some parts based on their rate of depreciation. The payment is made for the reduced amount and not for the cost of replacement parts.
1. Rate of depreciation for all rubber, nylon/ plastic parts, tyres and tubes, batteries and air bags-50%
2 Rate of depreciation for all fiber glass components-30%
3.Rate of depreciation for all parts made of glass -Nil
4.Depreciation will be charged on the below mentioned expenses and will be calculated based on the %age mentioned against it
Painting expenses - In the case of painting, the depreciation rate of 50% shall be applied only on the material cost of total painting charges. In case of a consolidated bill for painting charges, the material component shall be considered as 25% of total painting charges for the purpose of applying the depreciation.
Metal/Wooden parts – In case if any metal part is replaced in the repair of the vehicle, depending on the vehicle age, depreciation is charged on the expenses incurred to replace the same as per the following schedule:-
Not exceeding 6 month-Nil
Exceeding 6 months but not exceeding 1 year-5%
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%
