A  motor vehicle is considered a write-off when it is damaged beyond repair or where the damage is so extensive that one cannot think of repairing it.
Another way is where a vehicle is reduced to a shell after a fire which definitely renders it a write-off.
Further there are situations where a vehicle becomes a technical write-off or it becomes uneconomical to repair.
The technicality comes in the sense that although the vehicle can be repaired it does not make economic sense to repair for example, a vehicle insured for K100, 000 cost K90, 000 to repair.
In such scenarios the vehicle becomes a technical write-off.
This is usually when repair costs go up to 70 percent but insurance is not an exact science so there could be variances which can be looked into on a case-by-case basis.
The interesting issue in our discussion is who decides whether to write-off the vehicle? Is it the insured or the insurer?
Ideally the insurer makes the decision but sometimes it may not be easy.
In as much as the policy gives the insurer the right to repair, replace or pay cash when a claim is made, there are situations where the insured insists that their vehicle should be written off, of course the onus of proof rests on them (insured) in such situations.
Well the starting point is for the insured to document the claim by submitting all the required documents such as completed claim form, police report, driver’s license, and three repair quotations.
Let me single out the quotations in a borderline case. The garage quoting should not simply quote ‘beyond economic repair….’
They need to give a detailed quote, itemizing what is damaged and the cost, then the insurer will evaluate whether repairing the vehicle makes economic sense.
The fact that the garage is not the one paying, has no right to declare a vehicle ‘beyond economic repair’ unless the damage is obviously too extensive in the eyes of a reasonable person.
Once the above documents are submitted the insurer is in a position of making a decision on the way forward after assessing the vehicle.
Although the insured may get quotations that indicate the vehicle being a write-off, the insurer may feel the vehicle is repairable as outlined above.
In such a case the insurer may request an independent garage to give a quotation or may involve a qualified motor assessor for an opinion, then make a decision
If the vehicle is written off, the insurer may either replace it or pay cash and the case ends.
The issue of the salvage is then dealt with if there is some salvage value.
The insurer reserves the right to dispose the same in whatever manner they wish provided they have discharged the claim and they don’t make a profit out of it.
The insured is usually given the option to buy back the salvage although the insurer is not obliged to do this.
If the insured does not retain the salvage, the insurer sells the salvage to those interested and the case ends.
A contentious situation is where, after a second opinion the insurer opts to repair the vehicle while the insured insists that vehicle should be written off.
In such a case the insurer needs to ensure that the vehicle is repaired to the satisfaction of the client, otherwise the client may refuse to accept the vehicle.
However in refusing to accept the vehicle, the insured needs to prove to the insurer about their decision.
Both parties should bear in mind that insurance being a legal contract it is subject to interpretation by the courts of law.
It is rare for such cases to go to court but this option should at least ring in the minds of both parties. Usually cases are resolved amicably which is the smarter way.
The last issue on this topic is the towing fees following a vehicle being written off. There are two schools of thought.
The first one says the towing fees should be swallowed in the sum insured therefore the insurer will not pay beyond the sum insured and the other one is that towing fees are an extra benefit and should be paid separately.
I tend to be biased with the rationale of the second school of thought.
Towing fees should be paid separately as an additional benefit but this is a topic for another time.
Comments: webster@picz.co.zm or webster_tj@hotmail.com or on face book search for Insurance Talk-Zambia page or call/text 0977 857 055
[The Author is a Chartered Insurer with more than ten years industry experience]