MB - CLAIM OF VACCUM PUMP --- HPLC LAB EQUIPMENT

[Minesh V Shah]

Dear Brothers, 

Pl share your valuable opinion regarding assessment of vacuum pump breakdown claim.

Policy --- EEI .
HPLC - Lab equipment
Year of Mfg. -- July 2018.

Pl share with technical justification -- life of the pump

Applicable rate of depreciation ---- / Yr. 

OR

NO Depreciation..

I am of the opinion we have to apply dep. --- Insured demand for No depreciation .   

regards 

Minesh Shah
Surveyor.
9824032094.

MINESH SHAH

SURVEYOR

+91 98240 32094

29, 1t Floor Amardeep Complex, Falshruti nagar, Station Road, Bharuch.

101, Kanha, 52, Purshottam nagar, BPC road, Alkapuri, Baroda.

[Rajan.P, Prime Assessors, Trichur - 680010.]

What is the damage? What part is damaged?

What is the  proximate cause for the damage?

P.Rajan

29, Keltron Nagar,

Kolazhy, Trichur - 680010, Kerala State

Phone. 0487 - 2200654
Mob.    09447223094

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[Lokesh Sharma Claims Consultant]

Dear Sir,

It depends on the type of claim, in case of total loss or beyond economical repairs there should be depreciation charged, however in case of partial loss 

As per wording "In cases where an insured item is destroyed, the Company will pay the

actual value of the item immediately before the occurrence of the
loss, including costs for ordinary freight, erection and customs duties if
any, provided such expenses have been included in the sum insured,
such actual value to be calculated by deducting proper depreciation
from the replacement value of the item."

In case of machine is partially damaged, then tariff says 

In cases where damage to an insured item can be repaired the
Company will pay expenses necessarily incurred to restore the
damaged machine to its former state of serviceability plus the cost of
dismantling and re-erection incurred for the purpose of effecting the
repairs as well as ordinary freight to and from a repair-shop customs
duties and dues if any, to the extent such expenses have been
included in the Sum Insured. If the repairs are executed at a workshop
owned by the Insured, the Company will pay the cost of materials and
wages incurred for the purpose of the repairs plus a reasonable
percentage to cover overhead charges.
No deduction shall be made for depreciation in respect of parts
replaced, except those with limited life, but the value of any salvage
will be taken into account.

Now the question arises, which parts have limited life, it depends on the parts which needs to be necessarily required replacement during the life of the machine, those are limited life parts, like battery, hinges, capacitors in motors, etc. insulation may be treated as consumables, in case of motors, but rest parts depends on their uses. Normally there is a question arose before surveyors that nothing has unlimited life therefore the depreciation should be considered on all parts, however this is wrong interpretation in my view as if the part can run through the whole life of the machine, then there should be no depreciation, like an old TV picture tube has limited life, but LED screen, whcih can withstand with the complete life of the machine say normal 5 to 7 years, there should be no depreciation.

     

Regards,

Lokesh Sharma

Insurance & Claim Consultant

 

9871999204

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