New Click Here to Play Diwali Spin and Win and Get Huge Discounts

    Register

    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?

    A Salvage Correct Answer Incorrect Answer
    B Actuary Correct Answer Incorrect Answer
    C Churning Correct Answer Incorrect Answer
    D Endorsement Correct Answer Incorrect Answer
    E Solvency Correct Answer Incorrect Answer

    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.

    Practice Next