deduction of Depriciation by insurence co.

vinod bansal (Querist) 22 April 2009 This query is : Resolved
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My car was insured for 6,00000/- & it was stolen by some one,insurence was for the period of 1-1-07 to 31-12-08 & car was stolen in the end of policy i.e. on 2-11-08. Insurence co. has sent me a cheque of Rs. 5,36,000/- & has deducted Rs. 64000/- as depriciation that is on higher side as i think. I want to know is there any rules/policy of govt. or insurence co. which control/regulate amount/% of deprication & have a checking/control on such type of arbitrary/unilaterly attitude of insurence companies.Thanks

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A V Vishal (Expert) 23 April 2009
Dear Bansal:
Insurance companies calculate the rate of depreciation as per the given schedule>please verify the rates of the company with which you had bought the policy.
SCHEDULE FOR DEPRECIATION FOR ARRIVING AT IDV
AGE OF THE VEHICLE % OF DEPRECIATION FOR FIXING IDV
Not exceeding 6 months 5%
Exceeding 6 Months but not exceeding 1 Year 15%
Exceeding 1 Year but not exceeding 2 Years 20%
Exceeding 2 Years but not exceeding 3 Years 30%
Exceeding 3 Years but not exceeding 4 Years 40%
Exceeding 4 Years but not exceeding 5 Years 50%

sanjay singh thakur (Expert) 23 April 2009
DearVinod
I agree with Mr. Vishal. Moreover IRDA is the Regulatory body which regulate all the Insurance Companies hence you can also write to them about your grievances.

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deduction of Depriciation by insurence co.

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