Fair Claims Guide
Let us assume you have a damaged garment – How will you or your drycleaner or any legal arbitrator determine the adjustment amount?
Every textile product has a “life expectancy” according to its intended purpose, material content and the rate of change in fashion or style. Since an article may retain a degree of usefulness beyond the point of life expectancy, it has some residual value for as long as it remains in useful condition; however, this is usually a minimal monetary value. An article that is rendered un-wearable, or worn out, within or beyond its normal life expectancy, has no value and no negotiable basis for adjustment regardless of the nature of the loss or damage. Sentimental value because of personal attachment is subjective and is ruled out as a valid consideration.
Average Life Expectancy of Textile Items in Years
As with life expectancy, age and condition are also taken into consideration in deciding the value of a used textile article at the time of damage or loss. A very worn garment is less valuable than an identical garment of the same age in good condition. A garment also loses value with the passage of time, regardless as to whether or not its owner has obtained fullest use of it.
Claims Adjustment Values Criteria
- Here is a step by step method for calculating adjustment value:
- Determine the replacement cost of the article.
- Refer to Table 1 for the type of item and its life expectancy.
- Refer to the appropriate column in Table 2.
- Read down the column to the actual age of the article.
- Read across this line to the adjustment values and choose the value that best describes its condition.
- Multiply this adjustment value by the replacement cost to determine the adjustment amount.
Table 1: Average Life Expectancy of Textile Items in Years
*Nonwoven only. Life expectancy for control or flocked articles in two years.
Table 2: Claims Adjustment Values Criteria