Estimate, Supplementary Estimate, Acceptance & Insurance Principles.
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Ashok Kumar Singh.
Sep 23, 2016, 1:32:58 AM9/23/16
to Insurance surveyors
Respected sir,
I am writing here for motor insurance. Most of the insurance companies in India take the repair estimate copy with claim intimation letter but not all. Some surveyors or PSU insurers have a doubt about supplementary estimate. Now I want to clear some things about insurance as under,-
Final Repair Estimate ( in Hindi language-- (Marammat ka anuman) :- Mostly insurers demand the detailed estimate before deputation of surveyors for indemnification. Insurer has a benefit of it that they appoint the surveyor as per level of loss (as amount of loss). These documents, as details of need of replacement parts and need of repair work from Repairers side are called Repair Estimate.
Supplementary Estimate ( in Hindi--Atirikt Marramat ka Anuman) :- Some times, Repairers do not demand the some need of replacement part or need of labours in final estimate, due to hidden parts or invisible parts status or due to as a human being mistakes. So Repairer prepare an another estimate and it is called as supplementary estimate and send it to to insurer for consideration.
Disputes:- Some Insurers or Surveyors has a opinion that supplementary estimate only for hidden or invisible parts. But as per my opinion it is a wrong perception of them.
Clarifications:-
Insurance contracts;- a contract of insurance is an agreement whereby one party, called the insurer, undertakes in return for an agreed consideration called the premium to pay the other party namely the insured a sum of money or its equivalent in kind upon the occurrence of a specified event resulting in loss to him. the policy is a document which is an evidence of the contract of insurance. insurance contracts involve two parties-the insured and the insurer. insurance contracts, like other contracts are governed by the general principles of the law of contract as codified in the indian contract act 1872.
this act provides that all contracts must have the following essential elements in order to be legally valid:-
1. Offer and acceptance.
2. Consideration:- In the case of insurance contracts "Premium" is the consideration from the insured and the "Promise to indemnify" is the consideration from insurer.
3. Agreement between the parties.
4. Capacity of the parties.
5. Legality of the contract.
General insurance have some principles and as under:-
1. Principles- Insurable Interest.
2. Principles- Utmost Good Faith.
3. Principles-Indemnity.
4. Principles-Subrogation and contribution.
5. Proximate cause.
Principles --Indemnity:- the object of the principle is to place the insured after a loss in the same financial position is to place the insured after a loss in the same financial position as far as possible as he occupied immediately before the loss.
Main points:- Insurance policy contract has not details of words as Final Repair Estimate or Supplementary Repair Estimate. Insurer has a contract with insured as the form of insurance policy with terms and conditions. Insurer or insured has not a legal contract with Repairer. But as per insurance policy contract, have a principle of indemnity. It is very important for all of us. So as per my opinion it should not be a matter that these demanded damages are visible or invisible in supplementary estimate. If damages are genuine and co relate with the cause of accident and nature of accident then Insurer should be accept the the supplementary estimate with the opinion of concern Surveyor, (as like final estimate way). We and Insurer should follow the principle of Indemnity.
With regards,
Ashok Kumar Singh.
Surveyor & Loss Assessor.
Greater Noida, U.P..
201308.
22.09.2016.
I am writing here for motor insurance. Most of the insurance companies in India take the repair estimate copy with claim intimation letter but not all. Some surveyors or PSU insurers have a doubt about supplementary estimate. Now I want to clear some things about insurance as under,-
Final Repair Estimate ( in Hindi language-- (Marammat ka anuman) :- Mostly insurers demand the detailed estimate before deputation of surveyors for indemnification. Insurer has a benefit of it that they appoint the surveyor as per level of loss (as amount of loss). These documents, as details of need of replacement parts and need of repair work from Repairers side are called Repair Estimate.
Supplementary Estimate ( in Hindi--Atirikt Marramat ka Anuman) :- Some times, Repairers do not demand the some need of replacement part or need of labours in final estimate, due to hidden parts or invisible parts status or due to as a human being mistakes. So Repairer prepare an another estimate and it is called as supplementary estimate and send it to to insurer for consideration.
Disputes:- Some Insurers or Surveyors has a opinion that supplementary estimate only for hidden or invisible parts. But as per my opinion it is a wrong perception of them.
Clarifications:-
Insurance contracts;- a contract of insurance is an agreement whereby one party, called the insurer, undertakes in return for an agreed consideration called the premium to pay the other party namely the insured a sum of money or its equivalent in kind upon the occurrence of a specified event resulting in loss to him. the policy is a document which is an evidence of the contract of insurance. insurance contracts involve two parties-the insured and the insurer. insurance contracts, like other contracts are governed by the general principles of the law of contract as codified in the indian contract act 1872.
this act provides that all contracts must have the following essential elements in order to be legally valid:-
1. Offer and acceptance.
2. Consideration:- In the case of insurance contracts "Premium" is the consideration from the insured and the "Promise to indemnify" is the consideration from insurer.
3. Agreement between the parties.
4. Capacity of the parties.
5. Legality of the contract.
General insurance have some principles and as under:-
1. Principles- Insurable Interest.
2. Principles- Utmost Good Faith.
3. Principles-Indemnity.
4. Principles-Subrogation and contribution.
5. Proximate cause.
Principles --Indemnity:- the object of the principle is to place the insured after a loss in the same financial position is to place the insured after a loss in the same financial position as far as possible as he occupied immediately before the loss.
Main points:- Insurance policy contract has not details of words as Final Repair Estimate or Supplementary Repair Estimate. Insurer has a contract with insured as the form of insurance policy with terms and conditions. Insurer or insured has not a legal contract with Repairer. But as per insurance policy contract, have a principle of indemnity. It is very important for all of us. So as per my opinion it should not be a matter that these demanded damages are visible or invisible in supplementary estimate. If damages are genuine and co relate with the cause of accident and nature of accident then Insurer should be accept the the supplementary estimate with the opinion of concern Surveyor, (as like final estimate way). We and Insurer should follow the principle of Indemnity.
With regards,
Ashok Kumar Singh.
Surveyor & Loss Assessor.
Greater Noida, U.P..
201308.
22.09.2016.
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