Page 205 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes Sometimes, the repairer is paid directly by the insured in which case the latter is reimbursed on
submission of a receipted bill from the repairers. In either case, discharge voucher or receipt is
obtained. The claims register and the policy and renewal records are marked that the claim is
paid indicating the amount of claim and the amount of salvage, if any.

Claims Documents

Apart from claim form and Survey report the other documents required for processing the claim
are:
(1) Driving Licence
(2) Registration Certificate Book
(3) Fitness Certificate (Commercial Vehicles)

(4) Permit (Commercial Vehicles)
(5) Police Report (Taxis, commercial Vehicle needs F.I.R./spot survey if loss is heavy or T.P.
loss occurs)

(6) Final Bill from repairers
(7) Satisfaction Note from the insured
(8) Receipted bill from the repairer, if paid by insured.
(9) Discharge voucher (full and final payment)

Total Loss Claims

Whenever a surveyor finds that a vehicle is either beyond repairs or the repairs are not an
economic proposition, he negotiates with the insured to assess the loss on a Total Loss basis – for
a reasonable sum representing the market value of the vehicle immediately prior to the loss.

If the market value is more than the insured value, the settlement will be brought about for the
insured value. The Insured will be paid in cash and the Insurers will take over the salvage of the
damaged vehicle which will thereafter be disposed of for their own benefit calling tenders
through advertisements in newspapers.
However, before the actual payment is made to the Insured, the Insurer will collect from him the
Registration and Taxation books, ignition keys and blank T.O. and T.T.O. forms duly signed by
the insured, so that the salvage is usually not encouraged, unless insured desires, so as to avoid
the hassle of salvage disposal.

Theft Claims

Total losses can also arise due to the theft of the vehicle and its remaining untraced by the police
authorities till the end.

!
Caution These losses will have to be supported by a copy of the First Information Report
(FIR) lodged with the Police authorities immediately after the theft has been detected.

The police authorities register the complaint allotting it a number of the entry made in the
Station Diary. This number, which is usually known as SDE No. or C.R. No. (Crime Register),
has to be quoted by the Insured in the claim intimation to the Insurers.

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