Page 46 - Ebook IC S01
P. 46
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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