Results 1 to 4 of 4

Thread: Home Insurance - Principle of Average to the loss!

  1. #1
    PolicyWala Newbie
    Join Date
    Apr 2009
    Location
    Mumbai
    Posts
    9

    Lightbulb Home Insurance - Principle of Average to the loss!

    A person owns a flat worth (market value) Rs.200000. He had insured it only for Rs 1,50,000. The flat is damaged by an earthquake, which loss is assessed at Rs.40000. Assuming the insurer applies the principle of Average to the loss, How much claim payment the insured will get?




  2. #2
    PW Stalwart >take's Avatar
    Join Date
    Jun 2009
    Location
    India
    Posts
    291

    Default

    = Sum Insured/ Flat Market Value X Loss
    = 150000 / 200000 X 40000
    = 75000

  3. #3
    PolicyWala Newbie
    Join Date
    Apr 2009
    Location
    Mumbai
    Posts
    9

    Default

    Is the above average of loss will also applicable for total loss case?

  4. #4
    PW Stalwart Master's Avatar
    Join Date
    Feb 2009
    Location
    Mumbai
    Posts
    438

    Default

    Quote Originally Posted by GoyalAbhey View Post
    Is the above average of loss will also applicable for total loss case?
    Not Applicable -
    (a) If you suffer a total loss, the above provision will have no effect.
    (b) If you suffer a partial loss, the maximum amount that you may recover will bear the same proportion to your actual loss as the amount for which the property is insured bears to the full value of the property.
    (c) Whatever your loss, in no case will you be entitled to recover more than the amount for which the property is insured.


Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •