Objective
- Ensuring the safety of employees using their vehicles for official purposes.
- Regulate the reimbursement process for the use of vehicles.
- Encourage efficient and economical use of vehicles for business purposes.
- Outlining the guidelines for Grade based Entitlements.
Scope
- Employees in the defined grades from specific departments are eligible for this policy as per the guidelines.
- Employees whose work does not involve extensive travel are covered under this policy.
Definitions:
- Value of Car : Road Value which is the total of Invoice value (including the registration charges, insurance, ex showroom price of vehicle) and all the taxes payable at the time of purchase of the car excluding value of car accessories.
- Pre-used car: This refers to existing car under use.
- Date of Purchase: The actual date of purchase as mentioned in the Tax Invoice
- Policy Entry Date: The date of entry of employee in the policy i.e. Date of Joining or Date of Promotion
- Policy Effective Date: The date on which policy becomes effective to employee i.e date of document submission
- Life of Vehicle: The Vehicle shall be covered in this scheme for maximum tenure of 84 months.
Applicability:
| Department | Grade |
| All Department (approval based, as per business requirements) | M4-M5, L1-L5, MGT |
- Date: The Policy shall be effective from 01st April, 2025
- Documentation: The employees must provide all documentary proofs of the Vehicles as outlined in the below, in the Employee Portal.
- Vehicle Registration Certificate (RC)
- Vehicle Invoice Copy (Road tax and vehicle insurance receipts, if not a part of invoice)
Reimbursement Table:
| Grades | M4-M5 | L1-L3 | L4-L5 | MG | |
| Value of Car | 11,00,000 | 14,00,000 | 18,00,000 | 22,00,000 | |
| *Monthly Car Allowance (INR) | 25,000 | 31,000 | 39,000 | 51,000 | |
| Rate Per Kms | 10 | 10 | 12 | 12 |
Other Guidelines:
- The vehicle must be under the name of the employee only in all cases
- The employee should preferably purchase a new car under this scheme.
- *The Monthly Car Allowance is inclusive of the tax component & will be a part of Non-Incremental CTC.
- For Breeding & Breeding Support Departments, any running beyond the monthly limit of 1200 km, shall be based on HOD approval only.
- If vehicle value is more than the specified limits, the reimbursement rate shall be restricted to the rate applicable to the respective grade bracket.
- The employee cannot opt for a model below the specified limit. However, a vehicle value of (+/-) 50,000 for M4-L3 & (+/-) 100,000 for L4-L5 shall be considered for coverage under this policy. In case of vehicle value beyond coverage as per grade eligibility, a lower grade eligibility can be considered, subject to fulfillment of other conditions of that grade eligibility.
- If the employee is promoted in between, before the expiry of 84 months, he shall be eligible for the rates as per his revised grade, only when the vehicle value meets the eligibility criteria as provided in the policy. Else, the migration clause will be applicable.
- In case of any transfers from Field work to office, the employee will no longer be eligible for coverage under the policy (refer Migration Clause)
- Once the limit of 84 months is reached, the vehicle shall exit from this policy.
- Second hand car shall not be covered in the policy
- The day wise km run shall be verified by the finance department on submission of odometer reading photographs in the expenses software
Precautions:
- It is mandatory for the employee to strictly adhere to the VNR Vehicle Safety and Maintenance Policy. Disciplinary action may be taken in case any violation is found.
- Every Employee under this scheme should be possessing a Driving license.
- Employees are expected to keep the car in good, clean and running condition. Company does not take any responsibility for breach of traffic rules, violation of any traffic laws, rash driving and/or car driven by any other person
- The company is not responsible for any damage to property or loss of life while an employee is using a vehicle for business purposes. It is recommended to have mandatory third-party insurance.
Migration Clause:
- Incase of Promotion/ Transfer from Office work to Field work- Employee will be migrated based on repayment of fixed component, calculated over remaining life of vehicle
- Incase of Promotion/ Transfer from Field work to Office work- To support the employee to cover his EMI/fixed portion of vehicle, following amount will be paid over the remaining life (Monthly) of vehicle – “Unpaid Fixed portion(Before Tax) (-) Realizable value of vehicle“
Policy Details
| Policy No. | 10.2.2 | Type | Eligible Employees Only |
| Release Date | 26.03.2025 | Prepared By | HR & Finance |
| Applicable w.e.f. | 01 April, 2025 | Approved By | Management |