Page 247 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

80% of insurers' liability for the loss on repair basis.
Following example will make this clear: Suppose net
liability (after adjusting Salvage value) on repair basis is
Rs. 65000 and on total loss basis it is Rs. 55000.

The suggested cash Loss Settlement may be (Rs. 65000
less 30% Rs. 19500) Rs. 45500 since the liability of
insurers is the least among all the three modes of
settlement.

iii) Repair Basis - The amount of loss in this mode of
settlement consists of repairer's labour plus cost of
parts replaced less depreciation. Excess if any is
also deducted. The salvage is collected by insurers.
Claims on repair basis also arise when the stolen
vehicle are recovered in damaged condition and
stripped of some parts. In such cases, the procedure
followed is the same as in the case of accidental
repairs, except that spot survey is always essential
as soon as the vehicle is brought in the police
premises.

Q 4. Describe the general procedure for settling Motor
Ans. Total Loss (Theft) Claim.
Procedure for settlement of motor total loss (Theft)
claims -Motor total loss claims can also arise due to the
theft of the vehicle and its remaining untraced by the

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