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Old 2nd May 2012, 13:31   #46
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Default Re: Insurance Claims - What a Con!

Well having previously worked with an Private GIC , though not in claims , I can confirm one thing. Most garages , makes huge profits on accidental repairs- especially on labour. I have seen my claims team , bargain the last penny out of some garages . For them the deliverable is to minimize the damage to the GIC. Most Private sector GICs have inhouse surveyors.
And as somebody rightly pointed out the Insurance companies have bargain power,as to a large extend , they could decide which garage the vehicle ends up - termed as "routing the traffic" in Insurance sector.

Now , the second scenario , is where an insurance company, outsources the activity to a third party. This is where,the charges could actually get inflated as , the surveyor , could be "attended to" by the garage.

Ok, now the real conflict on interest comes , when there is a repairable part involved.The insurance company would try to get the same repaired, where as the garage would want the same to be replaced.

Anyways , I fail to see how Insurance company would make profits by inflating cost of repair..If its about NCB, whether the claim is for Rs.1000 or Rs.100000 , the NCB would be 0% for the next renewal
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Old 4th May 2012, 18:10   #47
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Originally Posted by AbhiJ View Post
Unless an accident requires changing of multiple parts, I usually avoid the insurance claim altogether.

For usual denting + painting, find a good independent body shop and get your denting/painting done there. Remember, the
cost for painting is moreorless the same for a Indigo door or a BMW door, provided they are the same size.

I have seen a TATA AIG surveyor haggle with a Honda S.A. It was crazy. The official price for painting a panel was say 7 k. The surveyor starting the bargaining by offering 2.5 k.
That is very true. The workshop invoice (in case of a privately owned) of a re-finish normally depends on the "make" of the car. The cost of re-painting a Indigo door or a BMW door is the same. Only difference is the type of paint used. A BMW dealer HAS to use a water-based paint as the manufacturer norms suggest so, whereas a Indigo can do with a solvent based paint.
Mind that there is no difference as regards the Quality of the paint is concerned - its just that water based paint has less VOCs compared to a solvent based paint.
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Old 25th May 2015, 16:27   #48
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Default Re: Insurance Claims - What a Con!

I have an insurance from a private GIC. The surveyor they have appointed for me is an independent guy. He has denied my claim to a bumper damage claiming its too old while its not the case. Other than bumper the damage is very low, and my claim would be useless as I would have to incur the entire cost of bumper replacement and painting. And the premium for next year would increase too.

Need help.
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Old 26th May 2015, 12:57   #49
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Originally Posted by parulkgupta View Post
I have an insurance from a private GIC. The surveyor they have appointed for me is an independent guy. He has denied my claim to a bumper damage claiming its too old while its not the case. Other than bumper the damage is very low, and my claim would be useless as I would have to incur the entire cost of bumper replacement and painting. And the premium for next year would increase too.

Need help.
How old is the car? What is the cost of bumper with paint?
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Old 26th May 2015, 13:04   #50
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How old is the car? What is the cost of bumper with paint?
He has agreed on making it 2 claims. He will cut minimum excess twice.
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Old 26th May 2015, 13:22   #51
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He has agreed on making it 2 claims. He will cut minimum excess twice.
2 claims mean two times the compulsory deductible, please make a note of this. This will leave your pocket lighter by 2K (if hatch). Generally bumper cost + paint is in the order of 8K isnt it? Again depending upon the vehicle.

How is the surveyor assuming that the bumper repair is an old one?
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Old 26th May 2015, 14:24   #52
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2 claims mean two times the compulsory deductible, please make a note of this. This will leave your pocket lighter by 2K (if hatch). Generally bumper cost + paint is in the order of 8K isnt it? Again depending upon the vehicle.

How is the surveyor assuming that the bumper repair is an old one?
Its a Honda. I assume Bumper + Paint would be 8-9k. Right fender is hit and the bumper is scratched as I drove into a barb wire /grill. The bumper got scratched on both sides and is alrite in the middle. So he assumes its 2 incidents. No benefit. So I am bearing 2K + consumables.

Quote:
Originally Posted by parulkgupta View Post
Its a Honda. I assume Bumper + Paint would be 8-9k. Right fender is hit and the bumper is scratched as I drove into a barb wire /grill. The bumper got scratched on both sides and is alrite in the middle. So he assumes its 2 incidents. No benefit. So I am bearing 2K + consumables.
BY scratched I mean the whole of plastic is cut in many places (half the thickness of plastic), the wire has made several cuts across the bumper too. SA said it should be replaced, while I thought it could be filled in and painted too.

Last edited by Gannu_1 : 26th May 2015 at 14:34. Reason: Back to back posts merged. Please edit your post within the 30 minute edit window to add/edit your posts.
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Old 27th May 2015, 18:04   #53
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Originally Posted by parulkgupta View Post
Its a Honda. I assume Bumper + Paint would be 8-9k. Right fender is hit and the bumper is scratched as I drove into a barb wire /grill. The bumper got scratched on both sides and is alrite in the middle. So he assumes its 2 incidents. No benefit. So I am bearing 2K + consumables.
ASCs have a tendency to replace the whole part instead of refinishing. Is he willing to return the old bumper? Usually they do not and will refinish it back door and resell it to someone else.
I suggest you approach and independent bodyshop who will be more then willing to fix the bumper at a cost lower then ASC. Also no harm in approaching a private bodyshop as there are no mechanical parts involved and hence no chance of fakes.

Last edited by KkVaidya : 27th May 2015 at 18:06.
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Old 27th May 2015, 18:11   #54
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Default Re: Insurance Claims - What a Con!

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Originally Posted by KkVaidya View Post
ASCs have a tendency to replace the whole part instead of refinishing. Is he willing to return the old bumper? Usually they do not and will refinish it back door and resell it to someone else.
I suggest you approach and independent bodyshop who will be more then willing to fix the bumper at a cost lower then ASC. Also no harm in approaching a private bodyshop as there are no mechanical parts involved and hence no chance of fakes.
Absolutely, I learnt this the hard way. There was a minor scratch on my left door. Went for replacement at ASC. Total bill came to 23000 including a minor dent on the quarter panel. Insurance paid 15K and I paid 8K. They took away the old door which they can easily repair and resell. My NCB was gone and insurance premium went up by 6K. So essentially I lost 14K in the process. I could have easily fixed the door and quarter panel at body shop for anything near 8K.
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Old 28th May 2015, 13:46   #55
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Absolutely, I learnt this the hard way. There was a minor scratch on my left door. Went for replacement at ASC. Total bill came to 23000 including a minor dent on the quarter panel. Insurance paid 15K and I paid 8K. They took away the old door which they can easily repair and resell. My NCB was gone and insurance premium went up by 6K. So essentially I lost 14K in the process. I could have easily fixed the door and quarter panel at body shop for anything near 8K.

I too am in a similar situation I guess. My cost is going to be 2 - 3 K however I am losing the 35% NCB this year which will start from 0 again which should be around 4K.

Also there is no way he will give me the old bumper. As per the OEM's policy it cant go back in the open market. The point about which I am worries is, I have been traveling and he has taken 5 days to repair it, I hope he has not refitted the old bumper.

Last edited by parulkgupta : 28th May 2015 at 13:58. Reason: additional comments
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Old 29th May 2015, 10:02   #56
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Post sorting out my claim, I came back and started thinking that for the poor Porsche Cayenne owner, who would have thought his bill was many thousands of rupees, the best decision would be to take a claim. And in the process sacrifice his NCB and some Premium discounts for next year, but in reality the insurance company actually makes money off him by paying only 5k for the work and pocketing the increased premium next year!! I am sure if the workshop will offer the repaint in 5-10k to a Porsche owner, he would have not even given it a second thought before agreeing.
I fail to understand what exactly is scam in all this?
Doesn't the workshop provide you with a bill?
So is the Cayenne owner not going to see the actual price of work done ever?
Or is it that the bill is made for an inflated amount and actual money that changes hands is less?
Or is it the point that workshop is offering the service for Rs 10K to individuals, but Rs 5K for individuals approaching via insurance agencies?
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Old 31st May 2015, 16:46   #57
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I fail to understand what exactly is scam in all this?
Doesn't the workshop provide you with a bill?
So is the Cayenne owner not going to see the actual price of work done ever?
Or is it that the bill is made for an inflated amount and actual money that changes hands is less?
Or is it the point that workshop is offering the service for Rs 10K to individuals, but Rs 5K for individuals approaching via insurance agencies?

There are 2 interesting points in insurance claims
1. The ASCs ask you to replace parts which are repairable, though you have to bear only a small portion of the cost, you lose NCB

2. The ASC and the surveyor when collude, can make a higher estimate and make the insurer shell out a higher amount for smaller repairs too.

In both cases the customer bears only the minimum excess and loses the NCB. And the insurer increases premium for the make where such cases are more frequent.

There is no scam in it.
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