Claims are estimated in General Insurance Policies based on the:
- Terms decided at the beginning of the policy
- The type of policy
- The type of asset insured
- The Assessors Report
All claim payments under general insurance policies will also account for applicable deductible and co-payment clauses before paying the claim amount.
Case on How are Claims Estimation in General Insurance Policies
Bharti Jain is a reputed builder and is currently involved in a personal construction project of one of his relatives Jatin Ahuja. As per his standard practice, he advised Jatin to insure this building to save himself from expenses of reconstruction if the building damages, due to a natural cause.
While the building was near completion, with only finishing and paintwork pending, a heavy hailstorm struck the city, damaging the building’s structure. The total damage assessed by the insurer was about Rs. 27,000 . paid the amount without any deductions since the building was under construction at the time of loss.
Mrs. Sarath has a 1400CC car which got damaged when it collided with another vehicle breaking suddenly on a busy highway. After all, consideration, estimated it as an accident with no fault of the vehicles as there was an animal on the road. Her car is 3 years old, and the insured total repair cost was Rs. 15,000, out of which the insurer reimbursed Rs. 8400 after depreciation. (Compulsory deductible applicable for vehicles less than 1500CC is Rs. 1000).
Shubhendu Das Gupta is a garment exporter, usually sending fashion garments across Europe and America. Last month he sent goods worth Rs. 15,00,000 with Rs. 12,000 for insurance and Rs. 18,000 for freight transport to a London port. A fire on the ship damaged or destroyed goods worth Rs. 500,000, caused by a lightning strike in the sea. Since could restore any of these goods, the insurer paid 110% of the proportional CIF value for the damaged and lost consignment; i.e. Rs. 561,000.