Irdai for changes in vehicle depreciation

NEW DELHI: Indsurance regulator Irdai on Monday proposed vehicle new age-based depreciation formula for computing sum insured for motor vehicles, including private cars and two-wheelers. A working group on 'Product Structure for Motor Own Damage cover' set up by the regulator has recommended two options for calculating sum insured for private cars. For brand new private cars up to 3 years, the sum insured "shall represent the current day on-road price of the vehicle insured including invoice value, road tax and registration charges and value of all accessories fitted thereon by the manufacturer", the exposure draft based on the recommendations of the working group said.