When the insurance fee in the policy remains below its actual value on the date the insured goods is damaged, it is called 'under insurance'.
In the under insurance, if the insured equipment is damaged, the fee written in the policy is paid as a claim. The remaining amount is not covered. You can have your under insurance calculated by contacting
info@denizleasing.com.tr to protect the equipment you have purchased with leasing against the exchange rate increases and avoid experiencing further financial losses in potential damages.
Example:
X company purchased medical equipment for 600,000 USD including VAT on 1 January 2021.
Y company selling medical devices made a sale to the X company for 4,800,000 TL by calculating the invoice based on an exchange rate of 8 TL. If the X company or the related leasing company if the purchase has been made with financial leasing, the insurance policy of the equipment has been made based on 4,800,000 TL.
Damages occurred in the equipment purchased by the X company. First, an expert was appointed by the insurance company regarding the damages and once the necessary repairs were made, the authorized service invoiced the X company for 50,000 USD repair and maintenance fee.
One of the first things the expert checks in damage assessment is if the insurance coverage fee of the related machinery is available in the policy accurately or not.
When the expert asks the X company about the sales fee, s/he learnt that it was sold for 600,000 USD including VAT. The expert will detect the TL equivalent of 600,000 USD based on the rate on 1 August 2022 (17.92 TL) as 10,752,000 TL. In this case in the insurance policy, there is 5,952,000 TL (55.35%) under insurance. As a result there will be an underpayment in damages as well as the premium that has been paid deficiently due to the low insurance fee.
The expert will decide on assessing the damage based on 22,235 USD by applying under insurance ratio to the damage for 50,000 USD based on the under insurance as a result of the study. S/he will write a report to assess the damage based on 22,235 USD before the exemption deduction and send the file to the insurance company. The rate increase created an additional financial burden of 27,675 USD for the X company in this example.
As it can be understood from the example above; even though they seem indirect, the increases in the exchange rate trigger the insurance policies and the issues that may be experienced with the insurance company. You can eliminate the big risks with small premiums to provide protection of the equipment purchased with leasing against the rate increases and avoid experiencing further financial losses.
