World's First Insurance Salvage Patent: Transforming Accident Recovery into Safety Innovation

The patent's implementation is projected to save lives through prevention of untimely deaths and disabilities. By ensuring transparent disclosure of accident history and repair quality, the system reduces the likelihood of compromised vehicles causing subsequent accidents.

- By Dr K. Rajagopal Reddy PhD, FIII, FCII (UK), FLMI (US), FT Chartered Insurance Practitioner Topspot Insurance Broking Pvt. Ltd.

Historic Achievement Sets New Industry Standard

Topspot Insurance Broking Pvt. Ltd. (commercially known as insurancepe) has achieved an unprecedented milestone by securing the world's first patent in insurance salvage technology. On March 27, 2025, the Government of India's Patent Office formally awarded Patent No. 380579 for the groundbreaking invention: "System and Method for Verifying and Tracking the Manufactured Articles from Insurance Salvage"

This historic patent, with retrospective effect from October 3, 2019, positions India as a global leader in insurance technology innovation and makes Topspot Insurance Broking the only organization worldwide to hold such a distinction in the insurance industry.

The Critical Problem: Beyond Claim Settlement

The current insurance ecosystem reveals a significant gap in responsibility and public safety. When vehicles are declared total losses after accidents, insurance companies typically settle claims and auction off the salvage, ending their involvement. However, these salvaged vehicles often reenter the market through various channels without proper disclosure of their accident history.

According to industry practices, salvage becomes the insurer's property once claims are settled. Traditional salvage handling involves selling damaged vehicles to dealers who may refurbish and resell them, often without transparent disclosure to future buyers. This creates a dangerous cycle where compromised vehicles continue to pose safety risks on roads.

Research indicates that the repair cost threshold for declaring vehicles as total loss typically ranges from 73% to 75% of the vehicle's actual market value. Once this threshold is crossed, vehicles enter the salvage market with minimal tracking of their subsequent journey.