The 2nd hand vehicles are added to the cover pool at their current value and not at their original price. Since the car depreciates the most in its initial years, its better to have 2nd hand vehicles in the pool, which won't depreciate as quickly.

And still to cover the depreciation value, we keep the maximum limit on Loan-To-Vehicle ratio. Our cover pool has loans with average LTV ratio of 72.4%

ANd there is an equivalent market if used cars and commercial vehicles in India as compared to new cars and CVs. Since first time buyers or small transport operators can't afford new vehicles and also don't have access to the banks that people like us may have, NBFCs come to the picture to cater these segment. These borrowers don't mind paying higher interest.

Depreciation of CVs is much lower than as compared to Private Cars, Our pool has majority of commercial vehicles.