Partial loss

Full cost of replacement of parts plus repair charges cost of dismantling and re-erection. Depreciation is applied only for the parts with limited life. If the repair works are undertaken by the insured actual material and labour costs plus a reasonable quantum of overheads is payable. Salvage is deducted. If the suminsured is not adequate policy pays only proportionately.

Total loss

The actual market value of item immediately before the occurrence of loss less salvage and depreciation subject to adequacy of suminsured

In both cases freight and customs duty are also paid if they are included in suminsured. Policy excess is deducted from the claim.