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  • RIV & Market Value

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    Bala Pandian Bharath
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    The document provides two examples of calculating reinstatement value and market value. For a mobile purchased in 2008 for Rs. 14,000, the reinstatement value is Rs. 8,800 based on an improved similar model costing Rs. 11,000 with a 20% improvement. The market value is Rs. 500. For a 2003 TVS Victor originally costing Rs. 30,000, the reinstatement value is Rs. 48,000 based on an improved similar model costing Rs. 60,000 with a 20% improvement, and the market value is Rs. 9,600 based on the vehicle being 8 years into its 10 year lifetime.

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    The document provides two examples of calculating reinstatement value and market value. For a mobile purchased in 2008 for Rs. 14,000, the reinstatement value is Rs. 8,800 based on an improved similar model costing Rs. 11,000 with a 20% improvement. The market value is Rs. 500. For a 2003 TVS Victor originally costing Rs. 30,000, the reinstatement value is Rs. 48,000 based on an improved similar model costing Rs. 60,000 with a 20% improvement, and the market value is Rs. 9,600 based on the vehicle being 8 years into its 10 year lifetime.

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    8 views2 pages

    RIV & Market Value

    Uploaded by

    Bala Pandian Bharath
    The document provides two examples of calculating reinstatement value and market value. For a mobile purchased in 2008 for Rs. 14,000, the reinstatement value is Rs. 8,800 based on an improved similar model costing Rs. 11,000 with a 20% improvement. The market value is Rs. 500. For a 2003 TVS Victor originally costing Rs. 30,000, the reinstatement value is Rs. 48,000 based on an improved similar model costing Rs. 60,000 with a 20% improvement, and the market value is Rs. 9,600 based on the vehicle being 8 years into its 10 year lifetime.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    of 2

    REINSTATEMENT VALUE & MARKET VALUE :

    For example: Calculate the reinstatement value for mobile purchased at 2008, Rs.14000. Bought out price Rs. 14000. (Purchased at 2008) Reinstatement price of similar capacity & make (calculate the percentage of improvement made) 20% improvement available of the similar capacity & make of mobile Rs. 11000. So, 80% of Rs.11000 = Rs.8800. Reinstatement value = Rs.8800. We pay the RIV to the claimant. Market value is different from the Reinstatement value. In this case, Market value is Rs. 500 ( If you sell the old mobile in the show room, what would be the cost for now)
    2nd example: Calculate the reinstatement value & market value for the TVS victor 2003 model, Rs. 30000. Bought out price Rs. 30000(purchased at 2003) Vehicle of similar capacity & make available now Rs.60000.(20 % of improvement made when compare to old one) RIV 80% of the 60000 Rs.48000. Reinstatement value is Rs.48000. Market value: The life time of the vehicle 10 years. Now the vehicle is 8 years old.(2011) 2/10 i.e 20% . 20% of Rs.48000 Rs.9600.

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