Page 22 - Motor Insurance Ebook IC 72

The Insurance Times

repairs is paid, but if old parts are replaced by new, a
suitable depreciation is charged on the cost of new parts
taking into consideration the age of the vehicle.

The depreciation table for the repairs is stated in the
policy, which is different from the one for total loss /
constructive total loss. However in case of motorcycles
and private cars no such depreciation is applied. Insurers
also reserve the option to repair or replace the vehicle
or pay in cash. L claims.

Basis of Indemnity will be to the extent lost/suffered in
terms of replacement value for the parts to be replaced
in case of partial accidental damage with associated
labour to be assessed by an Independent Surveyor
keeping policy terms and conditions in view. T

he Insurance Act provides that the losses less than Rs.
20,000/- can be assessed by in-house surveyors.

Third Party Liability - Policy indemnifies the actual
damages awarded subject to the limits of liability, if any,
specified in the policy. Policy also indemnifies actual
legal costs.

Subrogation - Subrogation, as an equitable assignment,
is inherent, incidental and collateral to a contract of

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