Total Loss in Car Insurance

When you intend to purchase another vehicle insurance contract, it becomes basic to comprehend the specialized perspectives so you can utilize your contract reasonably. One such specialized viewpoint is a complete misfortune in vehicle protection which frequently becomes tricky. This article will assist you with understanding all that you ought to realize about the complete misfortune in engine protection.


Total Loss in Car Insurance

Total misfortune in vehicle protection is announced when a vehicle is harmed so much that the expense of fix is higher than the vehicle’s all out IDV. For the most part, the complete misfortune is proclaimed when the maintenance cost of the harmed vehicle surpasses 75% of the vehicle’s IDV. Complete misfortune to the vehicle can happen in the accompanying 2 situations:

1. Complete misfortune by accident: The vehicle is harmed destroyed and can’t be utilized anymore.

2. Absolute misfortune by theft: The vehicle is taken and isn’t traceable by the authorities.

In such circumstances, the insurance agency repays the current vehicle’s IDV deducting the necessary overabundance measure of the repairs.


Constructive Total Loss

In basic terms, the harm in the event of constructive complete misfortune is high to such an extent that it turns out to be a lot less expensive and more brilliant to purchase another vehicle all things being equal. This is principally on the grounds that complete constructive misfortune alludes to a circumstance where the vehicle has been harmed destroyed with negligible possibilities reestablishing the vehicle to its unique shape as the expense of fix is more than the guaranteed pronounced value.


Rules of Constructive Total Loss according to the Motor Vehicles Act, 1988

Section 55 of the Motor Vehicles Act, 1988 states that assuming a vehicle is destroyed unrecoverable and runs over the circumstance of a constructive all out misfortune, they are expected to report the make a difference to their enlisted Regional Transport Office in the span of 14 days from the date of the mishap to pronounce a complete misfortune and retraction of the registration of the vehicle.

Calculation of the Insured Declared Value

IDV is determined by including the all out worth of the multitude of frill of the vehicle including the selling cost of the vehicle as recorded by the producer. At last, the complete devaluation required on the vehicle in light of its age is deducted from this determined sum. Following is the rundown of devaluation pertinent against the age of the vehicle to ascertain the safeguarded proclaimed value:

Age of the Vehicle

Applicable Depreciation Rate

New vehicle


Under 6 months


6 months – 1 year


1 – 2 years


2 – 3 years


3 – 4 years


4 – 5 years


Above 5 years

Mutually chose by Insured and Insurer

If you wish to gauge the safeguarded proclaimed worth of your vehicle, you can utilize theIDV calculator available at the authority site of Policybazaar Insurance Brokers Private Limited.


Factors Affecting Insured Declared Value

The IDV decides the market worth of your vehicle. This is the value that will be agreed to you if there should be an occurrence of a complete misfortune to your vehicle. Henceforth, it becomes critical to know the different basic factors that influence how much the safeguarded announced esteem. Such factors are featured below:

  • Age of the vehicle
  • Current mileage of the vehicle
  • Make, model, and variation type
  • The structural and mechanical state of the vehicle
  • Date of registration of the vehicle
  • Cubic limit of the engine
  • The ex-display area cost of the vehicle
  • Type of vehicle – private, business, or organization owned

Avoid Lower Claim Amount in Case of Total Loss

When it comes to add up to misfortune or constructive all out misfortune, the policyholder is just repaid with the pre-chosen measure of the protected announced worth of the vehicle. This protected announced esteem continues to diminish as the vehicle’s worth deteriorates over the long haul, lessening the case sum the policyholder would get if there should be an occurrence of complete loss.

In such circumstances, policyholders can incredibly profit from a re-visitation of receipt add-on cover. The policyholder can decide on one at the hour of restoring or buying engine protection. Get back to receipt add-on fills in as an extremely valuable cover as it strengthens a current engine insurance contract. On account of a complete misfortune, return to receipt guarantees that the policyholder is made up at the absolute cost of the vehicle as referenced in the receipt at the hour of the buy and not the protected pronounced value.

This lessens the hole between the absolute cost of the vehicle and the determined IDV guaranteeing that the policyholder gets all out remuneration for the full worth of their vehicle and in addition to the devalued safeguarded announced esteem. If it’s not too much trouble, note that re-visitation of receipt add-on cover isn’t accessible in that frame of mind of outsider insurance.



While all out harm to the vehicle is unquestionably not a circumstance any policyholder would need to be in, it is as yet essential to comprehend its details as it becomes significant in the event of a genuine disaster. Ensure that your vehicle is guaranteed constantly as mishaps don’t declare their appearance, and guarantee that you drive responsibly.