Let's Understand How The Depreciation Percentage Will Affect The Claim Amount With An Example
Raj was on his way to his work when his car collided with another vehicle. His laptop got destroyed completely due to the impact. He
decides to file a claim for the laptop loss since he has a personal belongings add-on. In the event of a claim, the insurer will pay the
compensation amount after considering the depreciation percentage. If the laptop is two years old and its price was Rs 80,000 when he
bought it, the claim amount he shall receive for the laptop will factor in the depreciation percentage of 40% on the retail value of the
laptop according to the table above. This shall determine the claim amount payable to Raj.
Claim amount payable -
Depreciation = 40% of Rs. 80,000
Claim amount = Laptop price - Depreciation
= Rs.80,000 – Rs.32,000
So, Raj shall receive Rs. 48,000 as the claim amount.
A personal belongings cover is definitely a good choice to cover your valuable possessions. Now that you are aware of the inclusions and exclusions of the personal belongings cover, we are certain that you can go ahead and decide whether to purchase it not.