Indemnity Basis of Settlement – Practical Problems in Adjusting Losses
This paper discusses indemnity settlement and how this might be applied to claims for buildings, machinery, plant, general contents and stock. Reference is made to diminution in market value.
The paper highlights the principle of financial interest (and therefore financial loss) and explores the potential impact of a policyholder’s intentions, both pre and post loss, on indemnity calculations. Readers are given factors to consider in their calculations including lifespan, age and condition of property, second hand replacements, different approaches to valuing stock and goods in trust.
File Type:
pdf