What Are the Standards for Total Loss Insurance Claims on Vehicles?

[DelHaven]

If the policyholder insures the vehicle based on the new car purchase price as the basic insured amount, in the event of a total loss of the insured vehicle, compensation will be provided according to the actual value of the insured vehicle as stipulated by the insurance policy. Below are the specific details regarding the relevant provisions: Regulations: According to the provisions of the Insurance Law, in the case of a total loss of the insured subject, after the insurer fully compensates the insured amount, the ownership of the insured subject transfers to the insurer. This means that once the insurance company fully compensates the policyholder for the loss, the ownership of the motor vehicle is transferred from the policyholder to the insurance company. Therefore, the entity applying for the scrapping and deregistration of the totally damaged motor vehicle is no longer the original owner but the insurance company. Conditions to be met: The motor vehicle must be deregistered; the motor vehicle must cease operation; the motor vehicle must be stolen or robbed with a police certificate, and the policyholder cannot exercise the right to terminate the contract arbitrarily as per the Insurance Law.