Pakistan’s Premier Insurance & Policy Portal
Auto Claim Depreciation Calculator
Estimate your net payout based on Pakistani insurance tariff rates
Estimated Parts & Repair Costs (PKR)
Total Estimated Invoice:
Rs. 105,000
Total Depreciation Deducted:
– Rs. 19,750
Policy Excess Applied:
– Rs. 5,000
Net Insurer Payout:
Rs. 80,250
How to Calculate Your Auto Insurance Claim Payout in Pakistan
When you file an auto insurance claim in Pakistan, insurance companies do not pay the 100% replacement cost for damaged parts unless you have an explicit Zero Depreciation (Zero Dep) Add-On cover. Standard comprehensive motor insurance policies apply fixed depreciation percentages based on the vehicle’s age and the material of the part being replaced.
Use our Pakistan Auto Insurance Claim Depreciation Calculator above to quickly calculate your expected out-of-pocket expenses and net reimbursement from your insurer in Pakistani Rupees (PKR).
Standard Insurance Depreciation Rates in Pakistan
Insurance claims in Pakistan follow standard tariff guidelines regulated by insurance practice and SECP rules. The depreciation is calculated based on two main factors: Part Material and Vehicle Age.
1. Material-Based Depreciation Rates
Regardless of vehicle age, certain part materials carry fixed depreciation deductions from day one:
| Part Material / Type | Depreciation Rate | Common Examples |
| Rubber & Plastic | 50% | Bumpers, headlights, indicator lights, tyres, rubber seals |
| Glass Parts | 30% | Front windshield, rear glass, side door windows, mirrors |
| Batteries & Tyres | 50% | Battery replacement and tyre wear-and-tear |
| Labor & Paint Charges | 0% | Workshop labor, panel painting (subject to policy excess) |
2. Age-Based Depreciation Rates (Metal Parts)
For metal components such as doors, bonnet, boot lid, and frame panels, depreciation increases gradually as your car gets older:
- Less than 6 Months: $0\%$ Depreciation
- 6 Months to 1 Year: $5\%$ Depreciation
- 1 Year to 2 Years: $10\%$ Depreciation
- 2 Years to 3 Years: $15\%$ Depreciation
- 3 Years to 5 Years: $25\%$ Depreciation
- Over 5 Years: $40\% – 50\%$ Depreciation
Understanding “Policy Excess” (Deductible)
In addition to depreciation on parts, every car insurance policy in Pakistan includes a mandatory Policy Excess (also known as a deductible).
Formula:
$$\text{Net Insurer Payout} = \text{Total Repair Invoice} – \text{Total Parts Depreciation} – \text{Policy Excess}$$
The policy excess is a fixed fee (typically ranging between PKR 2,000 and PKR 10,000 depending on your vehicle’s value) that you must pay out of pocket for every separate claim event.
FAQs
What is Zero Depreciation insurance in Pakistan?
Zero Depreciation (or “Nil Depreciation”) is an optional add-on cover available for newer vehicles (usually under 3 to 5 years old). If you have this cover, the insurer pays the full cost of replacing metal, plastic, and glass parts without deducting standard depreciation percentages. You only pay the policy excess fee.
Are labor and paint charges subject to depreciation?
No. Workshop labor charges and painting costs are not depreciated. However, they are still included in the gross invoice total from which your policy excess is deducted.
Why is plastic depreciation so high (50%) in Pakistan?
Plastic, rubber, and glass components suffer faster wear-and-tear and degradation from environmental factors like sunlight and heat compared to metal body panels. Therefore, standard Pakistani insurance tariffs set a fixed 50% deduction on all plastic and rubber replacements.