How depreciation and IMT-23 work in a motor claim assessment
In a motor claim, depreciation is the share of a new part's cost that the policy does not pay, because the old part it replaces had already worn. That is why the assessed loss is usually lower than the garage's bill — unless the policy carries zero-depreciation cover.
Depreciation by type of part
- Rubber, nylon and plastic parts, tyres and tubes, batteries and air bags: 50%, whatever the vehicle's age.
- Fibreglass parts: 30%.
- Glass parts: nil.
- All other parts, including metal: by the age of the vehicle, as below.
| Age of vehicle | Metal and other parts |
|---|---|
| Up to 6 months | Nil |
| 6 months to 1 year | 5% |
| 1 to 2 years | 10% |
| 2 to 3 years | 15% |
| 3 to 4 years | 25% |
| 4 to 5 years | 35% |
| 5 to 10 years | 40% |
| Over 10 years | 50% |
Painting
A painting charge is part material and part labour. Depreciation applies only to the material. Where the bill does not split the two, the material is taken as a quarter of the charge and depreciated at 50% — so 12.5% comes off the painting total.
The compulsory excess
Every own-damage claim also carries a fixed deduction set by the policy: ₹1,000 for a private car up to 1,500 cc, ₹2,000 above that. It applies with or without zero-dep cover.
What IMT-23 is
IMT-23 is an endorsement found on commercial vehicle policies. It extends cover to parts that would otherwise be excluded — such as lamps, tyres and tubes, mudguards, bonnet and side parts, bumpers and paintwork of the damaged portion — on a restricted basis. In the assessment those parts are listed in their own tables ("metal parts under IMT-23", "rubber parts under IMT-23", "painting — IMT-23"), and the amount allowed for them is half of their assessed cost.
A worked example
A private hatchback, two years and three months old, under 1,500 cc, with a cracked rear bumper, a bent metal bracket and a repaint. The same estimate gives two different answers depending on the policy:
| Line | Estimate | Depreciation | Standard cover | Zero-dep cover |
|---|---|---|---|---|
| Rear bumper (plastic) — replace | ₹6,000 | 50% (−₹3,000) | ₹3,000 | ₹6,000 |
| Bumper bracket (metal) — replace | ₹1,200 | 15% (−₹180) | ₹1,020 | ₹1,200 |
| Labour | ₹1,800 | — | ₹1,800 | ₹1,800 |
| Painting — boot lid and bumper | ₹4,000 | 12.5% (−₹500) | ₹3,500 | ₹4,000 |
| Compulsory excess | −₹1,000 | −₹1,000 | ||
| Assessed loss (before GST) | ₹13,000 | −₹3,680 | ₹8,320 | ₹12,000 |
The ₹3,680 gap between the two columns is depreciation alone. It is also why Triyan reads the policy document before suggesting any rate: the photographs look identical either way.
Frequently asked questions
Is depreciation applied to labour?
No. Labour is not a part and is not depreciated. Painting is treated separately: depreciation applies to the material share of the painting charge only.
What does zero-depreciation cover change?
With zero-dep (also called nil depreciation) cover, replaced parts are paid at full value. The compulsory excess still applies.
Who decides the depreciation rate on my claim?
The policy wording does. The surveyor applies it and shows it in the assessment; on Triyan the rate is suggested from the policy and the vehicle's age, and the surveyor confirms it.