Bharti AXA INSURANCE GLOSSARY Vehicle Depreciation Depreciation is the loss in value of a vehicle over time from regular wear and tear. For insurance purposes, the depreciation rate for the vehicle and parts thereof is fixed by IRDAI. The depreciation rate used for income tax depends on the Income Tax Act and may be different. The schedule of depreciation rates in respect of parts replaced is: For all rubber / nylon / plastic parts, tyres and tubes, and batteries For fiber glass components For all parts made of glass Rate of depreciation for all other parts including wooden parts follows the below schedule: Age of Vehicle % of Depreciation Not exceeding 6 months 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% The rate of depreciation for overall value of the vehicle, used to determine the insured declared value is: Age Of The Vehicle % Of Depreciation For Fixing IDV of The Vehicle 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% Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Related Posts Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.