Total loss is basically when the cost of repair exceeds the cost of car
worth or price. Also, the total loss can occur in two situations that is car
theft or car accident leads to complete damage and is of no use. You
follow traffic rule which works in accordance with the motor vehicle act, 1988.
Car Insurance
And, ''if a motor vehicle has been destroyed or has been rendered
permanently incapable of use, the owner shall, within fourteen days, report the
fact to the registering authority.'' says 55 of the Motor Vehicle Act. After
your car is declared as a total loss, you must inform the Regional Transport
Office (RTO) within 14 days where you should submit your registration card so
that your card gets cancelled. It is to understand that if any vehicle gets
damages more than 75% of the insured declared value then it falls in the
category of total loss. IDV or insured declared value is the current market
value of the car.
In case of a total loss, you get compensated as per the IDV or insured
declared value. Return to invoice is useful add-on coverage to protect
your asset with car insurance. It protects you from the liability of total
damage to your car is an unpleasant event.
In final words, now you have a better understanding of the process to
measure the total loss of a car. So, if you get into such a situation do inform
your insurer and RTO in the first place and collect all the documents
together.
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