Claims on repair basis also arise when the stolen vehicles are recovered in damaged condition and / or stripped of some parts.
Under certain circumstances, insurers settle Total Loss claims without claiming the salvage (Net of salvage basis) or reimburse the insured with his repairs bills without submission of repairs bill or without even verifying whether the vehicle is or will be repaired or not (cash Loss basis). These types of settlements are in the nature of compromise mode of settlements and are known as "Cash Loss" settlements.
Fire Damage to Vehicle: The most usual cause of motor vehicle fires is the failure of electrical system and this most frequently follows repairs which have involved removal of the engine. This usually causes the wiring to be disturbed which breaks down the insulation and results in a fire perhaps months later.
Loss caused by Mechanical / Electrical Break Down are excluded from the policy cover but any damage consequent thereon would normally be the subject of indemnity.
The following factors are assessed for Post Automotive Repair: i. Labour charges /Time schedule & Rate; ii. Painting component / technology; iii. Spare parts pricing
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