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Old 22nd February 2012, 14:09   #16
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Default Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query

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He got around 3.1 Lakh from Insurance (Cash Loss) and scrap dealer where he independently sold got around 4 Lakh .. He had to give his RC to the scrap dealer..
Hello Kiyon,

Thank you for updating the thread. Coincidently, if you read my post above I suggested he will get around Rs. 7 lakh & also mentioned Scrap Dealer will take RC Book from you.

This is the normal process. I am also going through a similar process & the Insurance company suryeyor has clearly told me that Scrap Dealers generally repair the Car in one / two weeks & sell it off for a decent profit.

Thanks,
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Old 14th March 2012, 14:10   #17
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Default Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query

It's only natural that if the insurance company or the scrap dealer are buying the car (or whatever left of it), they should also get the RC book.
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Old 15th March 2012, 16:48   #18
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Default Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query

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Originally Posted by Kiyon View Post
He got around 3.1 Lakh from Insurance (Cash Loss) and scrap dealer where he independently sold got around 4 Lakh .. He had to give his RC to the scrap dealer..
Quote:
Originally Posted by Jignesh View Post

This is the normal process. I am also going through a similar process & the Insurance company suryeyor has clearly told me that Scrap Dealers generally repair the Car in one / two weeks & sell it off for a decent profit.

Thanks,
This is what we had to do when our Innova met with an accident. The IDV was around 5 lakhs (IIRC). The scrap dealer (conveniently arranged by the insurance company) purchased the wrecked vehicle on an as-is basis for Rs 3.5 lakhs and the insurance company 'reduced' our losses by paying the difference amount of 1.5 lakh. So, at the end, even if the car was not considered as total loss, we finally got the full IDV value.

And now, the same Innova is fully repaired and plying the streets of Bangalore in front of my very own eyes

By taking cash from the scrap dealer, you are essentially 'selling' your car to him, so you will have to give your RC to him. He will sell it to some other person just as a normal car would be sold.

Edit: Just found the posts that I had made for the above issue
http://www.team-bhp.com/forum/techni...ml#post1706134 (Need a suggestion: To repair or dispose)

Last edited by addyhemmige : 15th March 2012 at 16:59. Reason: Added link
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Old 15th March 2012, 17:51   #19
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Originally Posted by Jignesh View Post
This is the normal process. I am also going through a similar process & the Insurance company suryeyor has clearly told me that Scrap Dealers generally repair the Car in one / two weeks & sell it off for a decent profit.

Thanks,
Hi Jignesh,
Why should this be the normal process? I am insuring the car for the IDV value, and the insurance company should be liable to pay me that amount, right.

I understand that the company is trying to make some bucks out of it and hence the above process.

But why should we agree to it? How long does it take if we decide to argue otherwise?

@androdev , @kevin - do provide your inputs/experiences on this.
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Old 16th March 2012, 10:28   #20
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Default Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query

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Originally Posted by addyhemmige View Post
This is what we had to do when our Innova met with an accident. The IDV was around 5 lakhs (IIRC). The scrap dealer (conveniently arranged by the insurance company) purchased the wrecked vehicle on an as-is basis for Rs 3.5 lakhs and the insurance company 'reduced' our losses by paying the difference amount of 1.5 lakh. So, at the end, even if the car was not considered as total loss, we finally got the full IDV value.

And now, the same Innova is fully repaired and plying the streets of Bangalore in front of my very own eyes
Hello Addy,

Were you happy with Rs. 5 lacs? because many times, IDV is less than the actual market value & if you go for Total Loss, you have no option but to accept Insurance Company's verdict.

Also I believe you would feel the pain when you see your Car working fine after repairs, but you had to dispose it off as Total Loss.


Quote:
Originally Posted by ninjatalli View Post
Hi Jignesh,
Why should this be the normal process? I am insuring the car for the IDV value, and the insurance company should be liable to pay me that amount, right.
I understand that the company is trying to make some bucks out of it and hence the above process.
But why should we agree to it? How long does it take if we decide to argue otherwise?
Hello Ninjatalli,

I will narate you my actual experience (that happened last month). My car met with a accident & the IDV was Rs. 2.5 lacs.
The repair estimate given by garage (M.A.S.S.) was Rs. 1.75 lacs + of which my liability was Rs. 40000 & rest (atleast Rs. 1.35 lacs) was insurance company's liability.

So the insurance company started searching for a scrap buyer. Their Srcap buyer offered Rs. 1.30 lac & thus their (insurance company) liability was only Rs. 1.2 lacs (Rs. 2.5 lacs being the IDV). So they opted for Total Loss.

During negotiations, we opposed the total loss & told then that we love our car & would like to get it repaired. So they offered to pay us Rs. 1.2 Lacs (their liability in case of total loss) & we can keep the car & do whatever we want with it.

But as the damage was on higher side, we opted for total loss. Initially they calculated Rs. 2.25 lacs as market value but we stood adamant on getting full IDV 9Rs. 2.5 lacs) bit finally the matter was settled at Rs. 2.4 lacs, which we found reasonable.

Hope this is helpful.

Thanks,
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Old 16th March 2012, 11:02   #21
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Default Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query

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Originally Posted by Jignesh View Post
Hello Addy,

Were you happy with Rs. 5 lacs? because many times, IDV is less than the actual market value & if you go for Total Loss, you have no option but to accept Insurance Company's verdict.

Also I believe you would feel the pain when you see your Car working fine after repairs, but you had to dispose it off as Total Loss.
Not at all happy. The market value was way more than the IDV. It was a very big loss for us. But, there was nothing much we could do at that time.

Yeah, it pains to see the car moving around
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Old 16th March 2012, 11:31   #22
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Default Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query

Quote:
Originally Posted by Jignesh View Post

Hello Ninjatalli,

I will narate you my actual experience (that happened last month). My car met with a accident & the IDV was Rs. 2.5 lacs.
The repair estimate given by garage (M.A.S.S.) was Rs. 1.75 lacs + of which my liability was Rs. 40000 & rest (atleast Rs. 1.35 lacs) was insurance company's liability.

So the insurance company started searching for a scrap buyer. Their Srcap buyer offered Rs. 1.30 lac & thus their (insurance company) liability was only Rs. 1.2 lacs (Rs. 2.5 lacs being the IDV). So they opted for Total Loss.

During negotiations, we opposed the total loss & told then that we love our car & would like to get it repaired. So they offered to pay us Rs. 1.2 Lacs (their liability in case of total loss) & we can keep the car & do whatever we want with it.

But as the damage was on higher side, we opted for total loss. Initially they calculated Rs. 2.25 lacs as market value but we stood adamant on getting full IDV 9Rs. 2.5 lacs) bit finally the matter was settled at Rs. 2.4 lacs, which we found reasonable.

Hope this is helpful.

Thanks,
@jignesh,
Thanks for the update. Appreciate it.

Again just introspecting:

1. The insurance company's liability is 2.5 lakhs. That is the amount they insured ur car for.
2. Net value of car for you at any time was 2.5 + 0.4 (rtax, etc - just assuming) : 2.9 lakhs.
3. The minute they go for total loss (irrespective of the actual damage), they are bound to pay you the entire IDV amount. What they do to make up that loss (scrap, etc) is upto them.
4. If they opt for scrap dealer, it is expected of you to surrender RC book, which means additional loss of 0.3-0.4 lakh, which should be ideally reimbursed.

So all the arguments they provide should be brought back to the above points, right?

I probably need to re-read the Total Loss clause again, will be doing it tonight, but the above are my thoughts on getting a proper understanding of how claims are handled in total loss cases.

Do correct me if I am wrong anywhere.

Last edited by ninjatalli : 16th March 2012 at 11:33.
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Old 16th March 2012, 11:44   #23
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Default Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query

I remember reading somewhere a few weeks ago that in a similar case which went to court, the court ruled that the insurance company has to pay the entire IDV in case of a total loss. The insurance agreement will usually have some fine print which tries to reduce the liability of the insurance company by depreciating the IDV either prorata or market value whichever is lesser, but by law they should be paying the entire IDV in case of a total loss.

To get a refund of the registration etc on scrapping a vehicle, it's a tad difficult. If you sell off the car (in as is condition) to either the insurance company (in case of a total loss claim settled with the company), you cannot claim the tax refund yourself, because you are effectively transferring the ownership of the car. If you want to get a refund, you will have to approach the RTO and claim the refund, in which case the liability of disposing off the car as scrap will also be on your shoulders. This means you have to retain the vehicle, and in this case the insurance company may not want to process it as a total loss.
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Old 16th March 2012, 11:52   #24
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Default Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query

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Originally Posted by ninjatalli View Post
@jignesh,
Thanks for the update. Appreciate it.
Hello Ninjatalli,

Thank you for the appreciation.

Coming to your questions:

1. The insurance company's liability is 2.5 lakhs. That is the amount they insured ur car for.

Yes

2. Net value of car for you at any time was 2.5 + 0.4 (rtax, etc - just assuming) : 2.9 lakhs.

Not necessary. I bought the car last year (June 2011) at the Price of Rs. 2.55 lacs + Insurance Rs. 8000 + Some repairs. So the Total Cost to me was Rs. 2.7 lacs approx.

3. The minute they go for total loss (irrespective of the actual damage), they are bound to pay you the entire IDV amount. What they do to make up that loss (scrap, etc) is upto them.

Legally speaking IDV is used for all future calculation / claims. But they always agrue the the market value of the car has gone down since we got the car insured. But if you remain adamant, they will pay you full (or almost full) IDV. In may case they agreed Rs. 2.4 lacs (for IDV of Rs. 2.5 lacs & we were happy).
Their calculations are based on the Scrap Value, if the Scrap value is high then they will try to puch total loss (Construction Total Loss in their terms)

4. If they opt for scrap dealer, it is expected of you to surrender RC book, which means additional loss of 0.3-0.4 lakh, which should be ideally reimbursed.

No. as I mentioned above, IDV is what they are liable to pay. Nothing else. They may pay you a fixed amount (probably Rs. 1500 or Rs. 2000 for towing of your vehicle after accident)

Yes. you have to surrender RC Book as the Scrap Dealer will definitely repair the car & sell it to a another used car buyer.

So all the arguments they provide should be brought back to the above points, right?
I probably need to re-read the Total Loss clause again, will be doing it tonight, but the above are my thoughts on getting a proper understanding of how claims are handled in total loss cases.

Please do read the policy throughly, it will help you in future in case of Insurance claim & we are always here to help / guide you.

Thanks,
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