Page 46 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

Partial Loss - In partial loss to the vehicle, the cost of repairs is paid, but if old parts

are replaced by new, a suitable depreciation is charged on the cost of new parts.

However in case of motor cycles and private cars no such depreciation is applied.

Insurers also reserve the option to repair or replace the vehicle or pay in cash.

Basis of Indemnity will be to the extent lost/suffered in terms of replacement value

for the parts to be replaced in case of partial accidental damage with associated

labour to be assessed by an Independent Surveyor keeping policy terms and

conditions in view. The Insurance Act provides that the losses less than Rs. 20,000/-

can be assessed by in-house surveyors.

Third Party Liability - Policy indemnifies the actual damages awarded subject to the

limits of liability, if any, specified in the policy. Policy also indemnifies actual legal

costs.

Motor insurance policies are indemnity policies. That's just a technical way of saying

that they just compensate the insured for an amount up to financial loss that he has

suffered on the vehicle, and no more. IDV is the maximum amount that insured can

claim under a motor insurance policy to compensate for any loss arising from theft or

accident.

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