What is a total loss claim?
Total loss of damaged vehicle shall be declared if it is uneconomical to repair;
Taking the following points into consideration.
- When the vehicle is totally destroyed/lost/due to insured peril.
- When the repair cost is equal to or more than the sum insured.
- When the repair cost is uneconomical:-
- When the estimated repair cost is equal to or more than 70% of the sum insured of the vehicle. In order to determine whether to declare a total loss it shall require knowing the salvage value of the vehicle
- If the estimated total repair cost exceeds the sum insured less the salvage value, then the vehicle shall be declared as a constructive total loss.
