Page 252 - Motor Insurance Ebook IC 72

The Insurance Times Rs. 25,000
Rs. 3,000-
(ii) Answer Nil Depreciation
Labour + Painting Rs. 7,000-
Cost of Head Lights Less depreciation 35%
Cost of Radiator (parts 4-5 yrs) =
Rs. 4875
Cost of Wind Screen Rs. 4,000-
Cost of Grill/Bumper Nil Depreciation
Rs. 8,000 -
Less salvage Less 50% Depreciation
Less Claim Excess being plastic= 4,000/-
Claim Payable Rs. 100/-
Rs. 500/-
Rs. 40,275/-

Q. 5. "Insurance fraud is a larger industry than
Ans: insurance business." Comment.
Motor insurance is the largest single portfolio that
impacts the lives of all sectors of society in India.
Internationally motor fraud ranges 10% to 15% of the
insurance claim payouts. It is, therefore, likely that in
India too this may be the range. However the absence
of recorded data hampers information on this aspect.

Fraud can be from external sources i.e. the insuring

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