Did You Know? Actual Value

Some insurance policies (i.e. Indonesian Fire Insurance Standard Policy, Contractor Plant and Machinery, and Machinery Breakdown) will provide basis of indemnity using “Actual Value”.

What is the definition of indemnity based on “Actual Value”?
Basis of indemnity using “Actual Value” will apply depreciation factor into its calculation. Depreciation factor commonly refers to lifetime and utilize age of the affected items.

The above is the explanation of insurance term that you will find on several insurance policies, i.e. Indonesian Fire Insurance Standard Policy, Contractor Plant and Machinery, and Machinery Breakdown policies. We suggest you to review your insurance policy thoroughly to get more comprehensive understanding.

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