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Date : Sep 26, 2008

Question

Sir, further to the answer to my query (1416) 28000, suppose the depreciation will be charged at the rate of 20% per year. After one year the depreciated value of my AC will be 22400 (28000-5600). 5600 is the depreciation charged for the first year at the rate of 20%. I understand that while insuring items under householders policy the product should be insured at replacement value so in this case what should be the value at which i need to insure this Thank you, Sridhar M

Answer

You have to insure your AC at its depreciated value that is  Rs. 22400.


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