Depreciation on Hopper Bottom Bins

Res #: 3-14M
Number: 3
Year: 2014
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Matters Pertaining to SARM

WHEREAS when insurance is placed on a steel hopper bottom bin, at least 80% coverage of replacement cost must be purchased; and

WHEREAS 2% depreciation on the value of the bin is calculated per year from the beginning age of the bin, resulting in the owner or lessee not receiving the full insurance coverage they had originally purchased;

BE IT RESOLVED that SARM lobby the provincial insurance industry to remove the 2% depreciation on steel hopper bottom bins.