IRDA brings in paint of vehicle under depreciable part

Insurance sector regulator IRDA today included vehicle paint under the purview of depreciable part and fixed rate of depreciation for the same.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney master your money IThe Winning Leap SME Special
Moneycontrol

Home » News » Business

Jan 10, 2013, 11.26 AM | Source: PTI

IRDA brings in paint of vehicle under depreciable part

Insurance sector regulator IRDA today included vehicle paint under the purview of depreciable part and fixed rate of depreciation for the same.

Like this story, share it with millions of investors on M3

IRDA brings in paint of vehicle under depreciable part

Insurance sector regulator IRDA today included vehicle paint under the purview of depreciable part and fixed rate of depreciation for the same.

Post Your Comments

Share Cancel

Insurance sector regulator IRDA today included vehicle paint under the purview of depreciable part and fixed rate of depreciation for the same. "In case of painting, the depreciation rate of 50 per cent shall be applied only on the material cost of the total painting charges," Insurance Regulatory and Development Authority (IRDA) said in a statement.

In case of a consolidated bill for painting charges, the material component shall be considered as 25 per cent of painting charges for the purpose of applying the depreciation, it said.

The changes have been brought in as it was observed that there were no uniform practice prevailing in the market for depreciation on painting, it said. The change shall be applicable to all motor package policies whose risk inception date falls on or after February 1, 2013, it said.

To this effect, IRDA has advised all the insurers writing motor insurance policies to make the proposed changes so that policyholders are made aware and there are minimal grievances/complaints.

At the moment, several companies don't deduct the depreciation element from the painting charges, and painting-related claims are fully reimbursed. IRDA is of the view that paint is manufactured from polymer, it should be included in the group of plastic parts. The regulator has fixed 50 per cent rate of depreciation on vehicle older than 10 years.

Buy, Hold, Sell ? Hear it first on M3
IRDA brings in paint of vehicle under depreciable part

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login