Old car (not manufactured any more), How do I estimate the sum insured for it?

[narayan]

I have bought a second hand car in May’2011, which is 5 year old. Now I want to insure it. I have checked and found out that this model is not manufactured any more in Indian Market. How do I estimate the sum insured for which I insure it?

Check the current market price and insure it at that price.

[Rahul]

IDV of the vehicles beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufactures have discontinued to manufacture ) is to be determined on the basis of an understanding between the insurer and the insured/proposer. Instead of depreciation, IDV of old cars is arrived at by assessment of vehicle’s condition done by surveyors, car dealers etc.