In the event of replacement of parts, the
insurer pays only the depreciated value,
which means you might have to bear a portion
of the claim amount. Illustratively, insurers
consider the value of plastic part to depreciate
at 50 per cent, with the first draw down
in value occurring at the time of the sale
of vehicle. So, even if you get a plastic
bumper replaced on the same day as you brought
the car and make a claim, your insurer will
reimburse you only 50 per cent of the cost
of a new bumper: you'll have to pay the
balance. The depreciation rates vary from
item to item and, in some cases, also with
the age of the item (See table: Depreciation
Rates on Spare Parts).
Depreciation
Rates on Spare Parts
Nature of Part
Rate (%)
Rubber, Nylon, Plastic Parts, Tyers
and Tubes, Batteries and Air Bags
50
Fibre glass components
30
Glass
NIL
All other parts (based on
age of part)
Up to 6 months
NIL
6 Months - 1 year
5
1-2 years
10
2-3 years
15
3-4 years
25
4-5 years
35
5-10 years
40
Over 10 years
50
*Rates
as of August 2003
An
additional premium is charged to insure items
not originally part of the vehicle such as
CNG/LPG kits, electronic items (stereos and
televisions sets) and electrical fittings
(extra lights and horns).
Vehicles manufactured in other countries
have to be valued by an automobile engineer
at the time of getting them insured. There's
a 30 per cent mark-up on premiums payable
on vehicles owned by embassies. Also, in
case of damage to the windscreen of such
vehicles, the compensation is limited to
3 per cent of the value of the vehicle or
Rs 30,000, whichever is lower.
You can make a claim even if the accident
happened while driving on the wrong side
of the road or while committing a traffic
violation without any criminal intent.
EXCLUSIONS
1. The policy doesn't cover for
loss or damage if the driver of the vehicle
was drunk at the time of the accident (which
has to be established through a breath analyzer
test or a stomach wash test-or driving without
a valid licence).
2. Damage to tyres (unless the vehicle is
also damaged), wear and tear, routine maintenance
and mechanical breakdown.
