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No, it is reimbursement for the capital value of the asset to put you back in the condition you would have been...
If it was a company car then you will have to go down the route of disposal of asset and the insurance payout is disposal proceeds which will determine if you have a balancing charge or allowance...
If it was a private car, then its just like if you sold the car - you are effectively selling the written off car to insurers for a value akin to buying it back - do you declare sale proceeds for a car on your tax return normally?
No CGT on cars either so even if sold for more than bought for not a taxable transaction!
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