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Case
Study II (Salvage manager acting as a Salvor): Salvage of Fire
affected electrical items lying at a construction project of five star
hotel in Hyderabad under CAR policy.
Facts of the case:
• As
reported to us, various electrical items such as
MCCB’s, Copper
cables, Pipes, etc. got burnt due to
an extensive fire at a project
site of a five star hotel
in Hyderabad valuing around Rs. 2.52 crore.
•
Insurers chose to avail our Salvor service.
•
Reported Claim Value was around INR 2.52 crore.
Our
Response:
|
Step 1: |
Our
team immediately, based on details furnished by the Insurers and
Adjusters, visited the site of loss and coordinated with Insured
and electrical contractors. |
|
Step 2: |
It
was planned to conduct complete qualitative and quantitative
inventory of salvage lying at the site vis-a-vis the Value at
Risk provided by the Insured to the Adjusters, which they
claimed to have totally lost in fire and worth Rs. 2.52 crore. |
|
Step 3: |
Each
and every identifiable item was measured / counted and complete
inventory was prepared. It was found that around 10% items were
completely gutted in fire and rest was identifiable and
measurable. |
The
Result:
-
It
took us around 15 days to take complete qualitative and quantitative
inventory.
-
The
inventory when got compared with Insured’s item wise Value at Risk,
it was revealed that the items claimed by the Insured were actually
not the Value at Risk but more than 50% items claimed to have been
lost in the incident were actually already got installed in the
rooms of the hotel. The Insured / electrical contractors were
claiming for all the items that had been brought on the project ever
since date of commencement, instead of claiming the Value at Risk.
-
The
claim that was earlier estimated at Rs. 2.52 crore, got reduced to
around Rs. 1 crore.
-
Apart
from that, due to proper segregation of burnt items into various
categories such as copper, M.S. scrap etc., we were able to realize
a salvage value of around Rs. 16 Lacs.
FINAL RESULT:
• The
claim that would have been paid as per Insured’s estimate of
Rs. 2.52
crore, was paid as per revised estimate of Rs. 1 crore
less salvage
and other adjustments.
Conclusions:
Benefit to the Insurers:
Claim value got decreased by around INR 1.50 crore
Apart from decrease in reported claim value, salvage value of Rs. 16
Lacs approx. was realized from burnt scrap. |
