Page 228 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

(d) depreciation or betterment
(e) Prospective profit or other consequential and

indirect losses are excluded.

i. Salvage - The term ' salvage' means - (i) all property
covered by insurance which escapes destruction or
damage from the operation of an insured peril. (ii) the
residual value of property which is partially damaged.
This property may be reconditioned or sold to determine
the amount of loss. (iii) the amount of money received
from the sale of the damaged property. This may also
be expressed as ' proceeds from sale of salvage'.

Assessment of loss may be on a 'net' basis or on a 'gross'
basis. If the insured retains the salvage, the loss is
indemnified as 'net'. This is the gross agreed loss amount
, less the value of salvage retained by the insured, as
determined by the Surveyors, in agreement with the
insured. Sometimes it is more economical and practical
for the salvage to be taken over by the insurers.

The surveyors can also suggest customers. The sale
usually happens by bidding or by producing tenders, the

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