Last updated 2021-05-01

Depreciation requirements on own damage claims

Certain requirements apply to Own Damage claims to reflect the decrease in property value due to use, wear and tear, and obsolescence.

Refer to the requirements when applying depreciation requirements on own damage claims.

Note: Depreciation of the replacement cost for all major mechanical components and convertible tops includes parts, tax, and labour.

Requirement	Details
Basis for depreciation	Depreciation is based on the remaining part life, or wear rating, and type of the replacement part used. Note: For information on types of parts, refer to the procedure, Items where depreciation applies.
Maximum depreciation	The maximum depreciation that applies to any single item is 90 percent.
Discuss with the registered owner or their representative	Depreciation is discussed with the vehicle owner or their representative, and listed on the Estimate or Appraisal as a pre-store line remark, Insured to pay depreciation. Important: If the ICBC Estimator does not discuss depreciation with the vehicle owner or their representative, the estimating services manager can waive the depreciation, at their discretion.
Applicable parts and systems	Depreciation only applies to new Original Equipment Manufacturer (OEM) or aftermarket replacement parts, such as mechanical, electronic, and hydraulic. specific, listed systems.
Exempt parts and systems	Depreciation does not apply when the replacement part is recycled refurbished exchanged, or rebuilt.