Motor Insurance in India cannot be transacted outside the purview of the Indian Motor Tariff unless specifically authorized by IRDA.

Motor Insurance include Private car, Motorized Two wheelers and Commercial vehicles running on roads.

There are two types of policies:

1. Third party/Liability only policy: This covers Third-party Liability for bodily injury and/or death and Property Damage.
   Personal Accident cover for Owner – Driver is also included.
2. Package Policy: This covers loss of damage to the vehicle insured in addition to (1) above.

• Insured’s Declared Value (IDV): The insured’s declared value of the vehicle will be deemed to be the “SUM INSURED” for the purpose of this tariff and it will be fixed at the commencement of each policy period for each insured vehicle- Refer below 1st chart. The IDV of the vehicle used to be fixed on the basis of manufacturer’s listed price of the brand and model as the vehicle proposed for Insurance at the commencement of insurance/renewal and adjusted for depreciation as per schedule specified below. The schedule of age wise depreciation as shown below is applicable for the purpose of Total Loss/Constructive Total Loss claims only. A vehicle will be considered to be a CTL, where the aggregate cost of retrieval and/or repair of the vehicle subject to Terms & conditions of the policy exceeds 75% of the IDV.
• DEPRECIATION SCHEDULE FOR ARRIVING AT IDV:
  

  AGE OF THE VEHICLE	% of Depreciation for Fixing IDV
  Not Exceeding 6 month	5%
  Exceeding 6 Month but not exceeding 1 yrs	15%
  Exceeding 1 year but not exceeding 2 yrs	20%
  Exceeding 2 years but not exceeding 3 yrs	30%
  Exceeding 3 years but not exceeding 4 yrs	40%
  Exceeding 4 years but not exceeding 5 yrs	50%

  IDV of Vehicles beyond 5 yrs of age and of an obsolete model of the vehicles is to be determined on the basis of an understanding between the insurer and the insured.

• DEPRECIATION ON PARTS FOR PARTIAL LOSS CLAIMS: The following rates of depreciation shall apply for replacement of parts for Partial Loss claims in respect of all categories of vehicles.
  1. The rate of Depreciation for all Rubber/Nylon/Plastic parts, Tyres and tubes, Batteries and Airbags – 50%
  2. For all fiberglass components – 30%
  3. Glasses – Nil
  4. Painting: In the case of painting the depreciation rate of 50% shall be applied only to the material cost of the total painting charges. In case of a consolidated bill for painting charges, the material component shall be considered as 25% of Total painting charges for the purpose of applying the depreciation.
• DEPRECIATION SCHEDULE FOR ALL OTHER PARTS :
  

  AGE OF THE VEHICLE	% of Depreciation for Fixing IDV
  Not Exceeding 6-month	NIl
  Exceeding 6 Month but not exceeding 1 yrs	5%
  Exceeding 1 year but not exceeding 2 yrs	10%
  Exceeding 2 years but not exceeding 3 yrs	15%
  Exceeding 3 years but not exceeding 4 yrs	25%
  Exceeding 4 years but not exceeding 5 yrs	35%
  Exceeding 5 years but not exceeding 10 yrs	40%
  Exceeding 10 yrs	50%