Every finance team managing field reps knows this problem. Claims come in with vague distances, no proof, and amounts that don’t match. You pay out anyway because chasing each one takes longer than approving it.
That ends up costing a lot more than it should.
This post gives you the exact formula used to calculate conveyance claims, a simple template to standardise submissions, and what to check before approving anything.
What Is a Conveyance Claim?
A conveyance claim is a reimbursement request a field employee submits for travel expenses incurred during work. This usually covers fuel costs when they use their own vehicle to visit clients, sites, or branches.
It is different from travel allowances, which are fixed monthly payouts regardless of distance.
The Standard Conveyance Claim Formula
The most widely used formula for per-kilometre reimbursement is:
Claim Amount = Distance Travelled (km) x Rate Per Km
Simple on paper. Messy in practice.
The problems come from two places: unverified distances and inconsistent rates. If your team is self-reporting distances without any validation, you are likely overpaying.
Breaking Down the Variables
Distance Travelled
This should be the actual distance between check-in and check-out locations for each visit, not a rough estimate. The most accurate source is GPS-verified travel data.
Rate Per Km
Most companies set this based on vehicle type.
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A Worked Example
Say a sales rep visits three clients in a day:
- Home to Client A: 12 km
- Client A to Client B: 8 km
- Client B to office: 10 km
Total distance: 30 km
Vehicle: Two-wheeler at Rs. 4/km
Claim Amount = 30 x 4 = Rs. 120
Now multiply that across 20 working days and a team of 50 reps. Without distance verification, even a 10% inflation in reported distances adds up to a significant annual loss.
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What Finance Teams Should Verify Before Approving
- Distance vs. actual route
Cross-check the claimed distance against the actual road distance using maps. If someone claims 40 km for a route Google Maps puts at 22 km, that is worth questioning. - Visits that actually happened
Was the rep actually at those locations? Without attendance or check-in records, you are taking it on faith. - Duplicate claims
The same route claimed on different dates is common when approvals are manual. A log helps catch this. - Rate applied
Confirm the right per-km rate was used based on vehicle type. Errors here are usually honest mistakes, but they add up.
Why Manual Claim Processes Break Down
Most companies still run this on spreadsheets or paper forms. The issues are predictable: missing entries, illegible submissions, no audit trail, slow approvals, and no way to flag inflated distances.
Finance teams end up either rubber-stamping claims to clear the queue or getting into back-and-forth with reps over missing details.
Neither is a good use of anyone’s time.
A Cleaner Way to Handle This
Tools like Unolo automate the distance tracking side of this process. GPS logs each visit, calculates the actual distance travelled, and feeds that data directly into the claim. There is no self-reporting. The distance is what it is.
This removes the single biggest source of error and dispute in conveyance reimbursement.
If you are managing a field team and want to see how Unolo handles automated claims, book a free demo.
FAQs
What is the standard conveyance rate per km in India?
There is no single mandated rate. Most companies offer Rs. 3 to Rs. 5 per km for two-wheelers and Rs. 8 to Rs. 12 per km for four-wheelers. The rate is set by internal policy and varies by industry and location.
Is conveyance reimbursement taxable in India?
Conveyance allowance up to Rs. 1,600 per month was tax-exempt under the old tax regime. Under the new regime, the standard deduction applies instead. For reimbursements tied to actual travel with supporting bills, separate tax treatment may apply. Confirm with your payroll or tax advisor.
How do I handle conveyance claims when a field rep uses public transport?
Ask for tickets or transaction receipts as proof. Set a separate rate or policy for public transport claims. The same template applies, but the “Rate Per Km” field is replaced with “Actual Fare Paid.”