Page 440 - IC38 GENERAL INSURANCE

The wording of the discharge receipt for third party liability claims may be on
the following lines:

I (Name of the claimant), of___________________________________ hereby
acknowledge to have received the sum of Rs.________________ Which amount
is paid by _________________________________________________ (name of

the insured) in respect of the claim made by me upon him for bodily injuries
and other losses sustained through an accident which occurred to me on or

about the _________ day of ___________ at _____________ and I agree that the
sum is paid with a denial of liability on the part of the said

___________________________ (or any other person) in respect of the said
occurrence and for damage whether now or hereafter to become manifest and

to the intent that the said and all other persons be absolutely and finally
discharged from the further and other claims of every nature and kind
whatsoever by me or in my behalf arising out of the said occurrence.

Date Signature Witness

(Note: These wordings are not standard but are given as illustrations only and
may vary).

c) Post settlement action

The action taken after settlement of the claim in relation to underwriting
varies from one class of business to another.

Example

Sum insured under a fire policy stands reduced to the extent of the amount of
claim paid. However, it can be reinstated on payment of pro-rata premium,
which is deducted from the amount of claim paid.

On payment of the capital sum insured under a personal accident policy, the
policy stands cancelled.

Similarly, payment of a claim under individual fidelity guarantee policy
automatically terminates the policy.

d) Salvage

Salvage generally refers to damaged property. On payment of loss, the
salvage belongs to insurers.

Example

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