What is Depreciation

Just a head's up on some of the terminologies in insurance.

Client's should know what their getting with their insurance packages right?
So I've added some short explanations on my site. =)

Depreciation: is the percentage of the cost of replaced parts which is shouldered by the insured.

Depreciation Schedule: (% of cost of brand new parts)
Age of Vehicle Private Car Commercial Vehicle
0-3 years Nil Nil
3-4 years 20% 25%
4-5 years 25% 30%
5-6 years 30% 35%
6-7 years 35% 40%
Over 7 years 40% 45%
Batteries, Tires,
Ball Joints, Tire
Rods & Shock
Absorbers for vehicles
over 3 years
45% 50%