Page 246 - Motor Insurance Ebook IC 72

The Insurance Times

compromise mode and are known as 'Cash Loss'
settlements, which are usually resorted to in the case
of Commercial Vehicle claims payable on repair's
basis. This mode of settlement is adopted in following
circumstances.

1) When the claim is assessed for Total Loss but
difficulties are encountered in disposing off the
salvage or when a reasonable amount is not
forthcoming as value of the salvage. In such cases,
the value of the salvage is mutually agreed upon, as
recommended by the Surveyor, and this is deducted
from the amount of Total Loss as assessed by the
Insured. In other words the Insured is reimbursed
the net Total Loss and allowed to retain the salvage.

2) When the insured insists on repairs even though
Total Loss settlement adjusting the salvage value
available is more economical to the insurer.

3) When the Insured purchases spare parts from
market without bill and are not in a position to furnish
bills these losses are settled 'Cash Loss' without
insisting on bills for an amount, which is suitable,
scaled down.

The cash loss settlement is generally offered at 60% to

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