Page 385 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

of insurance of such cars, the Tariff provides loading
the O.D. premium on such cars by 15%.

(d) Sports Cars - Insurance of Sports cars poses
following problems:
i) Sports cars are considered to be heavier risks
than other cars of the normal type.
ii) The repair costs are likely to be higher.
iii) These cars which are specially designed for
high speed are usually driven by young drivers
from affluent families.
iv) The loss severity will be high because of the
high speed. Proposal for insurance of these
cars is to be considered on the individual
merits. The acceptance is subject to an
excess, exclusion of personal accident
benefits and loading of premium.

Q. 21. What is a "Cash Loss Settlement?" When this
mode of settlement is adopted in claims?

Ans: Wherever a claim is settled on Total Loss basis, the
salvage becomes the property of the Insurer.

If it is settled on repair basis, the payment is made either
direct to the repairers against his bills/cash memos or
production of receipted bill of the repairer.

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