Repair estimate below 75% of IDV but total loss proposed: what should an Indian owner check?
After serious vehicle damage, an insurer or surveyor may propose a total-loss settlement instead of repair. A current ICICI Lombard explainer says a vehicle is typically treated as a total loss when estimated repairs exceed around 75% of its insured declared value (IDV). That is insurer guidance, not a substitute for the policy wording, survey report or case-specific assessment.
Documents and decisions to check
| Area | What to verify |
|---|---|
| Damage assessment | The written survey report, affected structural and safety-critical parts, and whether hidden damage is included |
| Repair economics | Itemised estimate, IDV used, admissible amount, depreciation, deductibles and likely supplements |
| Settlement | Gross offer, every deduction, salvage treatment, finance closure and payment conditions |
| Vehicle future | RC/disposal steps, repair feasibility, safety confidence, resale and future insurability |
| Escalation | The insurer's written review or grievance route when the numbers or classification are unclear |
If a repair estimate appears materially below the insurer's stated benchmark, which evidence should control the decision: the surveyor's damage assessment, a revised repair estimate, structural-safety findings or the net settlement value? At what verified out-of-pocket repair amount would accepting the settlement become the better choice?
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