Page 387 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

carried out. In fact, the Insured is free to do what he
likes with the vehicle, e.g. he can even sell it in "as is
where is" condition.

The cut in the assessed amount is supposed to take care
of this possibility and/or to represent the expenses such
as sales tax, excise etc. which the Insured may not have
to incur if he chooses to repair the vehicle by fixing up
second-hand spare parts.

This mode of settlement is also adopted when the
claim is assessed for Total loss. But difficulties are
encountered in disposing of the salvage or when a
reasonable amount is not forthcoming as value of the
salvage.

In such cases, the value of the salvage is mutually
agreed upon, as recommended by the surveyor, and
this is deducted from the amount of Total Loss as
assessed by the Insured. In other words, the Insured
is reimbursed the net Total Loss and allowed to retain
the salvage other instances of 'Cash Loss' settlement
are:

(a) When the insured insists on repairs even though
Total Loss settlement adjusting the salvage value
available is more economical to the Insurer. In

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