Question
When an insurer pays your claim for a damaged item and
then takes possession of it for resale to offset its loss is called?Solution
Salvage refers to when the partly damaged goods or any machinery or any other property settled on total Loss basis is known as “Salvage”. After the claim for the full amount the salvage becomes the property of the insurance company. It is mandatory to transfer all rights, ownership, and interest of the damaged cargo to the insurer, after which the insurer becomes the owner of the damaged goods.
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