QS Study

The partial loss is a damage that neither destroys the insured good or property nor renders it useless for its designed purpose. Total loss means the destruction of an asset or property to the extent that nothing of value is left, and the item cannot be repaired or rebuilt to its pre-destruction state.

Difference between Total loss and partial loss discuss as follows:

Total loss –

  • Definition: Total loss implies that the insurer property is fully destroyed and a total of the owner.
  • Indemnity: Insurance Company is fully liable to pay total loss.
  • Determination of loss: Total loss is easy to determine because an insured property is fully destroyed.
  • Sale invoice: To estimate the total loss sale invoice is not necessary.
  • Additional expense: In case of total loss, there is no additional expense;
  • Legal compliance: In case of total loss, legal compliance is strictly followed.

Partial loss –

  • Definition: Partial loss arises only when this insured property is partially destroyed.
  • Indemnity: Insurance company on pay the proportion of policy value against the total assets.
  • Determination of loss: It is difficult because to estimate partially destroyed property is time-consuming.
  • Sale invoice: In order to determine of partial loss sale invoice is essential document.
  • Additional expense: Additional expense incurred due to an estimation of loss by the third party.
  • Legal compliance: In case of partial loss there is flexibility to settle the loss.
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