Fire insurance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2010 Is there any limits of depreciation applicable to settlement of fire claim wherein fixed assets has been destroyed.

Does sec 64 of Insurance act deal with this ?

kartik_somu

kartik_somu (Expert)
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25 April 2010 if the assets have been destroyed in full and cannot be used anymore,then depreciation need not be provided.

If the asset can be used, then the repairs less amount received have to be charged to profit and loss and the depreication can be provided for.