Whenever a claim is made in car insurance, 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 of the part.
The rates of depreciation are as mentioned below:
- In case of a paint job, a depreciation rate of 50% is applied to the material cost of the paint. In case a consolidated amount is charged for the paint job, then the cost of paint material is considered to be 25% of the total cost and the 50% rate of depreciation is applied on it.
- For all rubber/ nylon / plastic parts, tyres and tubes, batteries and air bags - 50%
- For fibre glass components – 30%
- For all parts made of glass - Nil
- Rate of depreciation for all other parts including wooden parts will be as per the following schedule:
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