Page 97 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

ii) due to obsolesce reIated to the state of its "up-to-dateness" and desirability

of its possession

The factors affecting the salvage value are:

a) Degree of damages sustained by the items (salvage recovery can be enhanced

considerably by segregating the items, in orderly lots based on their extent of

damages, rather than presenting as a mixed single lot)

b) Market demand for the items in "as is where is" condition dependent on

market acceptance or preference for repaired, reconditioned items and

availability of "organised salvors".

c) Alternate applications / uses for the damaged items.

d) Recycling potential (paper, plastics, ferrous scrap etc

METHODS OF SALVAGE DISPOSAL

The insured may decide to retain the salvage in which case a value is fixed on the

salvage by the surveyor and the amount is adjusted in the claim. In other words, the

claim is paid "net" of salvage

The surveyor, to safeguard the interest of insurers has to bear in mind the

following aspects:

A definite agreement with the insured as to what he is to sell.

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