Some Insurance Terms - Claims made basis/Retroactive date & Total Loss/Partial Loss

1. Claims made basis
The policy is on `Claims made’ basis. This means that the accident giving rise to the claim shall occur during the period of insurance and further that the claim shall be first made against the insured during the policy period.

2. Retroactive date
This is the date of commencement of the first `Claims made’ product liability policy. This date will remain unaltered as long as the policy has been renewed without break and there has been no substantial material change in the risk.

3. Total Loss
The actual market value of item immediately before the occurrence of loss, less salvage and depreciation subject to adequacy of sum insured In both cases freight and customs duty are also paid if they are included in sum insured. Policy excess is deducted from the claim.

4. Partial Loss
Full cost of parts plus the labour charges, to and fro freight, customs duty and charges for dismantling and re-erection. Excess applicable to the affected item is deducted from claim. Depreciation is applied for items with limited life.If the repair works are undertaken by the insured, actual material and labour costs plus a reasonable quantum of overheads is payable. Salvage is deducted. If the sum insured is not adequate, policy pays only proportionately.