Page 386 - Motor Insurance Ebook IC 72

The Insurance Times

However, under certain circumstances, Insurers are
forced to settle Total Loss claims without claiming
the salvage or reimburse the Insured with his repairs
bill without submission of repairs bill without even
verifying whether the vehicle is. or will be repaired
or not.

These types of settlements are in the nature of
compromise mode of settlements and are known s
"Cash Loss" settlements which are usually resorted
to in the case of Commercial vehicle claims payable
on 'repairs' basis.

By their very nature, repairs to a truck have to be carried
out by several different workshops depending on
whether it is tin-work, body-work or mechanical work:
etc. the owner of a truck is in no position to finance the
entire job himself, especially when the outlay is large
and to wait for reimbursement from the Insurers after
the complete job has been carried out and verified by
the surveyor.

In such a situation, both the parties to the insurance
contract come to an arrangement whereby the insured
agrees to accept a sum which is lower than the assessed
amount by, say 25% to 30% and the Insure{ agrees to
pay it in cash without insisting that the repairs will be

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 386

Copyright@ The Insurance Times. 09883398055 / 09883380339