Not to mention the loss of coverage of the earthquake Tasikmalaya, a new earthquake in western Sumatra (30/09) SR 7.6 magnitude by the ingestion of hundreds of lives, while thousands families lost their homes. On this occasion, I will try to apply the method of the actual cash value (ACV) in the calculation of the earthquake insurance liability by referring to provisions PSAGBI (Insurance Standard political earthquake in Indonesia ), version AAUI 2007.
Base AAUI PSAGBI coverage in 2007 is the actual cash value, including Article 13 indicated that pricing is based on the true value (real value) of insured property losses shortly before accounting for depreciation of the technical (damping technique). The key word is depreciation.Value of real definition was also included in Article 3 that “a number calculated from the cost of replacement or restoration of property (damaged) by type and same place, but not better or more extensive than the insured property immediately before loss or damage, less depreciation.
Complaints, etc. PSAGBI compensation formula can be written as follows:
Torts = (price of responsibility: The truth value) losses actually x
where,
In fact, (value of Actual Cash Value) = Value Cost new acquisition or reconstruction (replacement / Restore value of costs) – Depreciation (amortization).
“In fact, the expected loss = cost alternative to replace the damaged part and not excluded by the policy – Depreciation (amortization). In the case of total loss, the losses are realized = value (ACV) = VN – Amortization.
Here is an illustration or an example of calculating the compensation claims of the earthquake insurance, either in the form of partial loss or total loss, and also good under fully insured and uninsured
Mr. Abdullah, who lived in the city of Padang secure buildings (buildings), its 5-year-RP 100,000,000.00 value. So when an earthquake 30/09/2009, partially damage (partial loss) of the collapse of masonry walls to rebuild the collapsed part of the expenditure required of MOP $ 8 million. Compensation insurance company if the annual depreciation is fixed at 6% down balance method and deductibles of 2.5% of the TSI?.
Answer:
-Depreciation = 100% – (100% – 6%) ^ 5 = 100% – (94%) ^ 5 = 100% – 73.39% = 26.61%, the actual loss = $ 8 million – (26 , 61% x 8 million) = $ 5,871,200.00 U.S. $.
A. Total insured status
Damage = (100 million dollars: 100 million) x = USD 5,871,200.00 USD 5,871,232.00 to 5,871,200.00 USD net = 2.5% x $ 100 RP = U.S. $ 5,871,200 U.S. $ 00 – USD $ 2,500,000.00 USD = 3,371,200.00.
B. Under the terms of the insured
“If the value of compensation has been done is USD = 150,000,000.00 (100 million dollars: 150 million) x = USD 5,871,200.00 USD 3,914,133.00 to 2,500,000.00 USD = Rp 1414. 133.00.
From the above figures show that if the policy is owned by Mr. Abdullah provided under the partial loss of compensation will use a condition in proportion to the average. Of course, this is just for compensation premiums were inadequate.
What if your house collapses around Abdullah with the ground when an earthquake occurs, then who did not have any left?. Total loss in similar conditions then changed to lose the same formula above as follows:
A. Total insured status
Prix responsibility = actual cash value (ACV) = VN – Depreciation = USD 100 million. LCA-reality loss = USD 100 million. -Compensation = (100 million dollars: 100 million) RP x 100 million = 100 million – $ 2.5 million = U.S. $ 97.5 million.
B. Under the terms of the insured
Reality loss = actual cash value (ACV) = USD 100 million. ”If the price of responsibility” stroke, according to the RP 80 million, then offset = ($ 80 million: $ 100 million) x Rp 100 million = 80 million rupees – 2.5% x 80 million rupees = 78 million rupees.
CONCLUSION
PSAGBI approved base-ACV (actual cash), so that any calculation of depreciation allowance applies.
“Whenever possible, the insured can make a good assessment of their property before they claim to avoid this result in insurance reimbursement is not completed when the complaint.