Page 250 - Motor Insurance Ebook IC 72

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which will be taken as the market value, and
accordingly the claim will be finalized, depending
upon the Sum Insured being equal to or more than
the market value.

4) Settlement - The usual procedure of obtaining the
discharge, payment to the financier if any etc., as
done in case of settlement of any own damage
claim is adopted while settling the claim. The
ignition keys, R.C. Book etc. are preserved by the
Insurer in their custody so that these are
made readily available if the vehicle is traced at a
later date.

Q. 5 (i) Define settlement of losses on repair basis.
Ans: (ii) A private swift 2005 model insured for Rs. 3

lacs from 1.4.2009 to 31.3.2010 met with
accident on 15.1.2010. The surveyor has
assessed the loss as under:
Labour charges Rs. 15000, Painting charges Rs.
10,000, Cost of Radiator Rs. 7,000, Less Salvage,
Cost of Head Lights Rs. 3,000, Cost of Wind Screen
Rs. 4,000, Cost of Grill Rs, 2,000, Cost of Bumper
Rs. 6,000, Salvage Value of Parts Rs. 100/-.
(i) Claims under Motor policies can be of three types
namely total Losses, Losses on repair basis and Third

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