Straight Forward Adjustment Example

Section - Technical Insurance - All Risks Contracts Plant & Equipment.
Insuranced property - Harvester Machine John Deere – Model 9660 – Model year 2005
Coverage - Total and partial damages by fire, forceful theft or accident, includes civil liability up to the equipment’s value, or US $50,000.00 the lower – excludes theft without violence.
Claim - Total Loss by Fire
Date of incident March 2016
Insurance Sum - US$ 305,000.00 (value to new)
Deductible Loss 10% of the amount claimed loss
Loss - Total

Cause
According to the deposition made by the owner, the harvester was in duty of threshing. This occurred in a rural establishment in the province of Buenos Aires, Argentina. The harvester, a John Deere, model 146.9660 STS, for unknown reasons to him, suddenly got fire in the rear, which is the sector where the fuel tank, the engine and the hydraulic system are located.

Cause Hypothesis:
According to the agricultural proficient and mechanical engineers, the possible conclusions are the following two:
1. Accumulation of seeds and thatch in the enigne exhaust. The contact of these with the high temperature exhaust/hoses system, promoted a fire ignition which further ahead expanded.
2. The electrical wiring could have heated the hoses that feed the engine, causing them to detach and/or break.
The area where the machinist (owner) could see a big amount of fire, is in the superior part of the harvester (behind the chute) where the engine, hydraulic system and fuel tank (which in that moment had around 850 liters) are located.

Conclusion:
According to what is verified, the machine was irreparable. We suggested the Insurer to indemnify the insured with the Real Value of the equipment, depreciated by age and use, and deduced the applying the corresponding franchise/deductible.
The remaining parts of the equipment where intended to be sold as junk.
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