How much can one claim if an insured vehicle is badly damaged?
If a vehicle is damaged more than 75 per cent, the owner is liable to get the entire value of the car (in that year). In sum, the insurer will pay the Insured Declared Value (IDV) of the vehicle for that policy year. The insurer gives the owner an option between accepting the market value (mostly lower than the IDV) and leaving the car with the insurer, or taking the IDV and retaining the car. If the vehicle is damaged less than 75 per cent, the cost of repair can be claimed.
What if the car owner and surveyor don't agree on the extent of damage?
In this case, both parties together (owner and insurer) can appoint an arbitrator, who helps with an intermediate solution. An arbitrator can take 10 to 15 days to come to a conclusion.