Constructive Total Loss

Notwithstanding anything herein contained in section I of this policy to the contrary, it is hereby declared and agreed that the insurance provided by this policy shall only cover the Total Loss of the motor vehicle Insured directly caused by accident, Fire or theft as defined in the Policy.

In the event the equipment insured is damaged due to accident, fire or theft and the Total repair costs of such equipment shall reach or exceed 75% its actual value (or referred as Stipulated Loss Value as defined in the Policy) at the time of the occurrence, such damage shall be considered as Total Loss and the Company’s Liability under this policy shall be the actual value of such equipment at the time of the occurrence but in no case shall exceed the Sum Insured herein.