Page 27 - The Insurance Times October 2025

insurancepe: Series

World's First Insurance

Salvage Patent:

Transforming Accident

Recovery into Safety Dr K. Rajagopal Reddy

PhD, FIII, FCII (UK), FLMI (US), FT
Innovation Topspot Insurance Broking Pvt. Ltd.
Chartered Insurance Practitioner

The patent's implementation is projected to save lives through prevention of untimely deaths and
disabilities. By ensuring transparent disclosure of accident history and repair quality, the system
reduces the likelihood of compromised vehicles causing subsequent accidents.

Historic Achievement Sets New Industry This historic patent, with retrospective effect from October
3, 2019, positions India as a global leader in insurance tech-
Standard nology innovation and makes Topspot Insurance Broking the
Topspot Insurance Broking Pvt. Ltd. (commercially known as only organization worldwide to hold such a distinction in
insurancepe) has achieved an unprecedented milestone by the insurance industry.
securing the world's first patent in insurance salvage tech-
nology. On March 27, 2025, the Government of India's Patent The Critical Problem: Beyond Claim
Office formally awarded Patent No. 380579 for the
groundbreaking invention: "System and Method for Verify- Settlement
ing and Tracking the Manufactured Articles from Insurance The current insurance ecosystem reveals a significant gap
Salvage" in responsibility and public safety. When vehicles are de-
clared total losses after accidents, insurance companies typi-
cally settle claims and auction off the salvage, ending their
involvement. However, these salvaged vehicles often re-
enter the market through various channels without proper
disclosure of their accident history.

According to industry practices, salvage becomes the
insurer's property once claims are settled. Traditional sal-
vage handling involves selling damaged vehicles to dealers
who may refurbish and resell them, often without transpar-
ent disclosure to future buyers. This creates a dangerous
cycle where compromised vehicles continue to pose safety
risks on roads.

Insurance salvage tracking system infographic showing the Research indicates that the repair cost threshold for de-
patent technology claring vehicles as total loss typically ranges from 73% to

The Insurance Times October 2025 25