Cahs In Lieu option can be done due to following resaons: Insured request, unavailability of parts or the insured not comfortable with the garage allocate.
The insured is offered compensation to conduct the repairs. A percentage of the total repair cost is issued upfront (usually 70% or 50%) and balance issued after reinspection that confirms repairs were done as per the terms stated in the Discharge Voucher(DV). Discharge Voucher is a document issue by the insureance company to the insured stating the repair to be done, parts to replaced and total cost to be paid out.
The amount paid in cash-in-lieu claims is less 20% garage markup, 16% VAT and excess charges where applicable. See sample breakdown of cash in lieu payment calculation.
Total repair cost xxxxxx
Less 20% markup xxxxx
Less 16% VAT xxxxx
Less excess (where applicable) xxxxxx
Net payable amount 70% initial offer and 30% after inspection
