Page 21 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

as far as possible as he occupied immediately before
the loss. This is a basic principle of insurance, which
applicable to of property and liability insurance, including
motor insurance

Application of the principle of indemnity to motor own
damage and third party insurance.

Damage to the vehicle
Total Loss : For Total Loss (TL) / Constructive Total
Loss (CTL) /Theft claims the principle of insured's
Declared Value (IDV) is applied. IDV does not take
into consideration market value or depreciated price.

It is the sum insured agreed at the beginning of the policy
between insurer and the insured. It is based on price or
new vehicle at the beginning of the policy period less
depreciation at the agreed rates. IDV remains constant
during policy period.

For extensive damage, which ultimately makes the repair
uneconomical, may be considered for total loss to be
derived by the independent surveyor. In such cases, the
insured, if wishes can retain the salvage and net amount
can be disbursed towards total settlement.

Partial Loss - In partial loss to the vehicle, the cost of

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