What is difrence between replacement and re instatement clause,and what is the impact at the time of claim.
Total Comments: 3
Posted: Wed Jan 27, 2010 12:11 am Post Subject:
I know what replacement means as it relates to claims, but have no idea what you mean by reinstatement...other than a policy being reinstated. But that has nothing to do with replacement...
Please explain your query with a little more detail and we can probably be of more assistance.
Posted: Wed Jan 27, 2010 05:05 am Post Subject: Replacement cost
Replacement cost replaces or repairs a damaged property with similar kind of material and quality without considering its depreciation as long as the cost is not more than the cover limit specified in the policy. And reinstatement is the restoration of a coverage after a lapse due to failure of premium payment.
Posted: Wed Jan 27, 2010 12:11 am Post Subject:
I know what replacement means as it relates to claims, but have no idea what you mean by reinstatement...other than a policy being reinstated. But that has nothing to do with replacement...
Please explain your query with a little more detail and we can probably be of more assistance.
Posted: Wed Jan 27, 2010 05:05 am Post Subject: Replacement cost
Replacement cost replaces or repairs a damaged property with similar kind of material and quality without considering its depreciation as long as the cost is not more than the cover limit specified in the policy. And reinstatement is the restoration of a coverage after a lapse due to failure of premium payment.
Posted: Mon Apr 25, 2011 06:48 pm Post Subject:
Thank you Scarlet for the definition. :D
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