Irdai proposes to make calculation of motor cover simpler, more transparent

Customers will not have to buy add-ons like invoice cover in the new regime

Vehicle owners have reason to smile as a working group of the insurance regulator has proposed a new age-based depreciation in value of vehicles for calculating the sum insured of their policies. This is expected to make the calculation of sum insured simpler, and lead to more transparent coverage that is in line with expectations. 

Two options have been proposed. The first one (see table) will calculate the sum insured of your vehicle by taking the current listed price of the car, including the value of all accessories fitted by the manufacturer, and adjusting by age-wise depreciation. The sum insured for