For insurance companies
Residual value from damaged items, across several independent channels.
The more channels a damaged item is shown on, the less the residual value depends on who happens to be looking. We publish widely and document the bidding for each item.
Residual value is a deduction — and deductions must be capable of explanation
The Insurance Contracts Act says nothing about residual value. It sets out how the value of the assets is to be determined, and the residual value is then deducted from it — a high residual value means a lower payout. The Act does not explain how the deduction is calculated; that question is shifted to what the company can actually demonstrate.
”Where the insurance covers the value of assets, the value shall be deemed to correspond to the replacement cost immediately before the insured event, less a deduction for age and use and, where the damage does not concern a building, for reduced usability and other circumstances.” Insurance Contracts Act (2005:104) Chapter 6, Section 2, first paragraph
Residual value, salvage value and total loss do not appear in the statutory text — the deduction on a total loss is governed by the policy terms and tested in case law, including by the National Board for Consumer Disputes. The insured asks ”how do you know the wreck was worth that much?”, and a valuation answers a different question than whether anyone was given the chance to bid. Where the residual value has been established through a sale in which the item was offered widely, the deduction is easy to explain — the offering, the time and the bids are exactly what Budgiv documents.
In depth: the duty to account on realisation — the insurance company →
How it works
- You send the inventory list. Or a short description of what is to be disposed of.
- We divide it into sale lots — each item that gets its own asking price — and select channels per lot.
- Publication on all selected channels, during the same period.
- The bids are collected and time-stamped, channel by channel.
- You decide. The documentation is issued — a signed, hash-linked and qualified time-stamped Realisation Report that can be verified by anyone, without an account and without contacting us.
Frequently asked questions
Where in the law is residual value set out?
Nowhere. The Insurance Contracts Act (2005:104) Chapter 6, Section 2 sets out how the value of the assets is determined — the replacement cost less a deduction for age and use — but the terms residual value, salvage value and total loss do not appear in the statutory text. The deduction on a total loss is governed by the policy terms and tested in case law, including by the National Board for Consumer Disputes. That is precisely why the burden of proof is shifted to what the company can actually demonstrate about how the residual value was arrived at.
Is the residual value a negotiation with you?
No. We do not negotiate a figure — we produce a market figure with documentation. The item is published widely, across several independent channels during the same period, and the bidding takes place in the channels. The residual value becomes the price the market actually gave, not an assessment that someone has to convince a counterparty of after the fact.
How does the documentation answer ”how do you know the wreck was worth that much?”
A valuation answers a different question than whether anyone was given the chance to bid. We provide a signed realisation report per sale lot showing where the item was offered, for how long and which bids were submitted. Where the residual value is established through a sale in which the item was offered widely, the deduction is easy to explain — the offering, the time and the bids are documented.
Can the policyholder or a counterparty verify the figure?
Yes. The Realisation Report is verifiable by the policyholder, a counterparty or in a dispute — without an account and without our involvement. The documentation stands on its own, whatever the relationship to us may be. Verify a report →
What does it cost, and can the price affect the residual value?
A fee per sale lot, fixed before the first bid is placed and independent of the final price. It can therefore never give us an interest in what figure the residual value lands on — which is the whole point when the figure has to hold up against a policyholder or in a dispute. See the price per sale lot →
Ninety seconds, no account. Tell us briefly what is to be sold, and we will come back with proposals on channel selection, how the assets are divided into sale lots, and a price.
Talk to us about residual value flows