Valuation of reinstatement value
The reinstatement value is a method of claiming settlement under a fire insurance policy. In the case of the reinstatement value clause, the insurance company reinstates the damaged property or asset by paying its replacement value as the claim amount to the policyholder.
Valuation for Reinstatement Value or to “Fix the Correct Sum Insured” thereby making the insurance coverage most cost-effective. As we all know the most important part of the contract of insurance or the insurance policy, is the fixation of Sum Insured. If the sum insured is not correctly fixed then either an average clause is applicable by which the claim amount gets reduced proportionately resulting in avoidable loss of money or if the sum insured is on the higher side then premium outflow loss is more with no extra coverage. Therefore, the sum insured should be fixed with complete knowledge.
Sapient is competent enough in providing such services and is providing the same to our major clients on year to year basis.
Therefore the “sum insured” should be fixed with complete knowledge.
i.e. providing Valuation of fixed assets to arrive at the “correct sum Insured”