Motor insurance - constructive total loss

shekhar jha (Querist) 05 November 2015 This query is : Resolved
Hello,
My query is as follows:
Suppose the IDV of vehicle is 1 lakh. The cost of repair is 80000/-. The insurers liability is 50000/-. Then will the constructive total loss calculation be done on 80000/ or 50000/-

Follow Query

Report Abuse

P. Venu (Expert) 06 November 2015
Please state your real problem, if any

Rajendra K Goyal (Expert) 06 November 2015
State actual problem if any.

anand (Expert) 07 November 2015
Although the information is not complete but to my understanding it shall be calculated on rs. 80,000/-

shekhar jha (Querist) 08 November 2015
The actual case is following:
The IDV of my vehicle is 1.87 L. After, accident, the Hyundai Workshop gave a preliminary estimate of Rs 1.91 L for repair. The surveyor is of the opinion that the repair cost will be more than this. But let us assume it to be 1.9 L. The vehicle is not destroyed totally. As per the preliminary estimate of surveyor, the cost to insurer would be around 1.2L and rest would have to be borne by me as per the insurance i have taken. Now, he says that this is not the case of constructive total loss because the LIABILITY OF INSURER IS LESS THAN 75% OF IDV. So, he gives me the choice of either getting it repaired or go for cash loss net salvage value. I am unwilling to accept this because the rule according to me is that, constructive total loss is calculated on "aggregate" repair cost. In case of constructive total loss, i am entitled to be paid the IDV. But in case of cash loss net salvage value, they reduce the IDV arbitrarily. So my question is 1) how is constructive total loss calculated? 2) Is there any legal basis of cash loss net salvage value?
with regards