Motor Insurance or Vehicle Insurance covers an individual and his vehicle against theft, damage, injury, third party liabilities etc. Traveling is a part of our life; we use certain types of vehicles to travel here and there; and probabilities of collisions are high, because thousands of vehicles run on road at a same time. If your vehicle hits an individual or his/her property; then that person may seek compensation, in such scenario, you have to pay for the loss caused by your vehicle. Here motor insurance comes into play; a motor insurance policy pays for the damages you cause to another person/property in an accident. Some motor insurance policies (Comprehensive or Package motor insurance policies) also pay for the damages to insured vehicle due an accident.

Depreciation for
|
Percentage of Depreciation
|
For plastic parts, rubber, tire & tube, battery, air bags and nylon etc
|
50%
|
For parts made of glass
|
0%
|
For fiber glass components
|
30%
|
Rate of Depreciation for all other parts
|
|
Age of vehicle
|
Percentage of Depreciation
|
Less than 6 months
|
5-7%
|
For 6 months but less than 1 year
|
15%
|
More than 1 year but less than 2 years
|
20%
|
More than 2 year but less than 3 years
|
30%
|
More than 3 year but less than 4 years
|
40%
|
More than 4 year but less than 5 years
|
50%
|
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