Depreciation under MBD/EEI Policies (Engg)
MBD/EEI polices used the wordings “no depreciation is applicable” however the line does not end here and subsequent part it is written “ except for wear and tear parts and /or parts having limited life” Why this type wording is used while it should have been whether the Depreciation is applicable or not . Initial stress is given that no depreciation should be applicable despite that any hardly any claim /assessed without any depreciation because remaining portion of the wordings. There cannot be anything which is not subject to wear and tear and unlimited life. Accordingly we fail to understand on what portion of the claim the depreciation would not be applicable. Though Insurer cannot change the terms and conditions of these policies being tariff products but we can educate the client while insuring their equipments so that the Broker/Insurer does not face embarrassing situation at the time of claim.