Page 264 - Motor Insurance Ebook IC 72

The Insurance Times

Ans: 12,000/-. The salvage value of the damaged
scooter is Rs. 5,000/-. Calculate the net liability
of the Insurance Company.
When the loss or damages to the vehicle cost 75% of
more than & 75% of the cost of the vehicle, the loss
is treated as Constructive Total Loss. Whenever a
surveyor finds that a vehicle is either beyond repairs
or the cost of repairs is more than 75% of the IDV
he assesses the claim on the Constructive Total Loss
basis.

However, before the actual payment is made to the
Insured, the insurers will collect from him the
Registration and Taxation books, ignition keys and blank
TO and T.T.O. forms duly signed by the insured, so that
the salvage can be transferred in the name of the salvage
buyer.

If the vehicle is beyond repairs and has to be scrapped
the RC Book and the keys will have to be returned to
the Registering Authority for cancellation.

B. Net liability of Insurance Co.
Since repairing liability is more than 75%, the claim is to
be treated as Constructive Total Loss and liability of
the Insurance Company would be:

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