Page 62 - Ebook IC S01

Survey And Loss Assessment IC-S01

In case of other variant of reinstatement value policy the insured may be

provided cost of new machinery without any deduction for depreciation. In this

policy separate premium is charged to provide this cover.

In some types of insurance for work of art, curios agreed value policies are issued

since it is difficult to determine the actual value.

In case of motor insurance, insureds declared value is regarded as the sum

insured. At the time of payment of loss the salvage value is deducted from the

claim amount.

Vintage car policies are issued on the basis of agreed value.

In marine cargo insurance since the goods are in transit from one country to

another the prices may fluctuate. So agreed value policies are issued for the

cargo.

Marine hull policies are also agreed value policies. The amount is fixed between

the insurer and insured.

The liability policies include a limit of indemnity and the insurance companies

indemnify only to the extent of limit granted.

In personal accident policies the principle of indemnity is not strictly applied as

human life cannot be measured in terms of money.

Subrogation and contribution

This principle prevents the insured from recovering more than the amount of loss

under the policy. For example in case of marine insurance say cargo is damaged due

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