Betterment clause

Term · Insurance and risk management · MLC-T-INS-000553

A provision in an insurance policy that reduces the amount of a claim payment if repairs or replacements result in an improvement to the insured property beyond its condition prior to the loss. This clause prevents the insured from profiting from a loss by receiving a new item for an old one. It is often applied in property and auto physical damage claims.

Table 1. Record
Identifier	MLC-T-INS-000553
Field	Insurance and risk management
Subject	Commercial Auto

Record as JSON

{
  "id": "MLC-T-INS-000553",
  "term": "Betterment clause",
  "field": "Insurance and risk management",
  "definition": "A provision in an insurance policy that reduces the amount of a claim payment if repairs or replacements result in an improvement to the insured property beyond its condition prior to the loss. This clause prevents the insured from profiting from a loss by receiving a new item for an old one. It is often applied in property and auto physical damage claims.",
  "subject": "Commercial Auto",
  "url": "https://mlchart.com/terminology/insurance/betterment-clause/"
}

Record 319 of 3,748 in Insurance and risk management terminology (MLC-0106). Request the full dataset.