Appointment of Valuer for Valuation of a Textile Unit

A Textile Manufacturer committed a sinful mistake & suffered gigantic losses.

How did we help them overcome this situation?

For a well-known textile manufacturing company to obtain insurance coverage renewal, a valuation was needed for reinstatement purposes. It was a unit with multiple plants comprising the assembly line, packaging, dyeing, etc.

Reinstatement valuation is required to be done for insurance purposes as the insurance renewal is due.
As common practice, the business owner(s) invites proposals from several valuers for carrying out the Reinstatement valuation & then selects a valuer who is best suitable for the requirement. The valuer is selected based on the lowest fees without investigating his/her background, often resulting in the selection of a valuer with less competence & less experience.

The valuation given by the valuer was less. Hence, the company assets were underinsured.
Due to a sudden flood in the region, the company’s assets have been damaged & they have to apply for an insurance claim. As the assets were underinsured, the actual claim amount was not received & as a result, the company suffered a huge loss.

The Company has to conduct a fresh valuation exercise & invite proposals from valuers once again to avail the accurate sum insured. They will have to send the invites after proper background study & investigation.

Now the valuer has been selected on the basis of expertise, after proper study of credentials & past experience. Hence, the valuation was super-accurate & the new insurance policy was taken as the basis of the valuation. As a result, the owners of the company are assured that they can use this in the future should the need arise.