Motor and Miscellaneous Loss Assessment
Motor and Miscellaneous Loss Assessment
This domain tests motor own-damage and third-party claims, plus miscellaneous classes such as engineering, liability and crop. The examiner expects correct application of IDV, depreciation, total loss and policy exclusions.
Motor own damage
- Verify policy, certificate of insurance, permit, fitness, driving licence and FIR where required.
- IDV is the maximum own-damage liability for total loss/constructive total loss, subject to policy terms.
- Depreciation applies to plastic, rubber, fibre and glass parts as per the policy schedule; metal parts are generally not depreciated.
- Constructive total loss (CTL) arises where repair cost exceeds the prescribed percentage of IDV-commonly 75% under Indian motor practice-or where repair is uneconomical.
- Deduct policy excess, salvage and betterment.
Third-party and miscellaneous
- Third-party property damage and bodily injury are assessed on negligence and legal liability, not IDV.
- Engineering policies (CAR/EAR, machinery breakdown, boiler) require inspection, breakdown cause analysis and depreciation.
- Liability claims need proof of legal liability; crop claims need yield-loss assessment and local verification.
Worked example
Motor OD claim: IDV ₹8 lakh; repair estimate ₹3 lakh; salvage ₹40,000; policy excess ₹5,000; betterment ₹10,000. Payable = 3,00,000 − 40,000 − 5,000 − 10,000 = ₹2,45,000. The claim is not a CTL because ₹3 lakh is below 75% of ₹8 lakh (₹6 lakh).
Traps
Treating IDV as the repair benchmark; double-deducting salvage; missing drunk-driving or permit violations; applying depreciation to metal parts; accepting repair bills without survey; ignoring subrogation against the at-fault driver.