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Old 30th March 2015, 10:49   #16
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Default re: Total loss accident, but car under loan. Now what?

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Last edited by GTO : 30th March 2015 at 14:49.
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Old 8th April 2015, 18:44   #17
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Default Re: Total loss accident, but car under loan. Now what?

Need URGENT help from members !
Please help me out . The insurance company surveyor called me and informed that if I am willing to negotiate the IDV settlement , they will consider it as total loss . Otherwise , they will undervalue the repair ( less than 75 % ) and consider it under repair.

What are my options now?
They are asking me to take 6 lacs ( IDV - 6.53 lacs) .
I am afraid that if I dont accept , they will consider it as repair as it is costing around 1.5 lacs for repair and also the car will be unstable after repair.

I have one question . Total loss is considered if the estimated charges are over 75 % or the insurance liability is over 75 percent of the repair charges ?
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Old 8th April 2015, 22:53   #18
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Default Re: Total loss accident, but car under loan. Now what?

Quote:
Originally Posted by SolidSnake View Post
Need URGENT help from members !
Please help me out . The insurance company surveyor called me and informed that if I am willing to negotiate the IDV settlement , they will consider it as total loss . Otherwise , they will undervalue the repair ( less than 75 % ) and consider it under repair.

What are my options now?
They are asking me to take 6 lacs ( IDV - 6.53 lacs) .
I am afraid that if I dont accept , they will consider it as repair as it is costing around 1.5 lacs for repair and also the car will be unstable after repair.

I have one question . Total loss is considered if the estimated charges are over 75 % or the insurance liability is over 75 percent of the repair charges ?
If the service centre has quoted 6 lacs as the repair amount, show them the estimate. Repair in unauthorised garages can lead to cancellation of insurance- so says the fine print. Where are they getting the 1.5 lac repair quote from?

Negotiate for a total loss, and don't give up more than the compulsory deductible. Not just that, you are also entitled to cancel the car's registration, and get a tax refund.

This is what you are entitled to. What you get will depend on your negotiating skills and tenacity.
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Old 9th April 2015, 09:31   #19
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Red face Re: Total loss accident, but car under loan. Now what?

Quote:
Originally Posted by SolidSnake View Post
Total loss is considered if the estimated charges are over 75 % or the insurance liability is over 75 percent of the repair charges ?
Total loss is considered if the repair cost exceeds 75% of IDV. Considering an IDV of 6.53L, the repair cost if greater than 4.85L would result in vehicle being declared total loss since the repair cost quoted by workshop is 6L.
Quote:
IDV shall be treated as the ‘Market Value’ throughout the Policy period without any further depreciation for the purpose of Total Loss (TL)/Constructive Total Loss (CTL) claims.
The insured Private Car shall be treated as a CTL if the aggregate cost of retrieval and/or repair of the Private Car, subject to Terms and Conditions of the Policy, exceeds 75% of the IDV of the Private Car.
It seems that the Insurance co is seriously arm twisting you into accepting the deal. Get the details of how the quote can be reduced by Insurance co when the workshop has given a quote considering that the difference is substantial between the two quotes. Tell the Insurance co that you will be communicating the issue to the Insurance ombudsman and see the response. If they still stick to their offer, then next course of action can be planned.
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Old 9th April 2015, 10:14   #20
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Default Re: Total loss accident, but car under loan. Now what?

Quote:
Originally Posted by SolidSnake View Post
Need URGENT help from members !
Please help me out . The insurance company surveyor called me and informed that if I am willing to negotiate the IDV settlement , they will consider it as total loss . Otherwise , they will undervalue the repair ( less than 75 % ) and consider it under repair.

What are my options now?
They are asking me to take 6 lacs ( IDV - 6.53 lacs) .
I am afraid that if I dont accept , they will consider it as repair as it is costing around 1.5 lacs for repair and also the car will be unstable after repair.

I have one question . Total loss is considered if the estimated charges are over 75 % or the insurance liability is over 75 percent of the repair charges ?
What is happening to you happened to me a year and a half back. I was quoted 6 lakhs for a two month old dzire zdi (IDV 7.35 Lakhs) that went for a total loss My Dzire met with an accident (My Dzire met with an accident). You need to pressurise them. The service center usually inflate the repair bill when the car looks like a total loss then the insurance company makes a huge cut on that bill and gets it down. In my case the bill by the service center was 8 Lakhs and the insurance company dropped it to 4 lakhs. That's 50% off.

I would suggest you to haggle a bit more with them. I ended up getting 7.1 Lakhs of my 7.35 IDV value for a two month old car. According to me you could get as far as 6.2 - 6.3 Lakhs from them as they would find some or the other way to argue about reimbursing the full IDV.

Repairing the car is not an option. You can request them to increase the claim amount by mentioning the loan factor that's how I was able to get 7.1 lakhs from my insurer which was effectively as good as my entire loan amount.

Trust me I know how irritating it can be dealing with insurance companies at the time of claim. Their attitude stings you more in case someone is injured in the accident and they pinch you more with their heartlessness. Glad to read that you or any other occupants weren't injured in the accident.

I suggest you to haggle with them for as long as possible and they would heed till a certain point and when you reach that point accept that amount as getting the full IDV is difficult.

Last edited by rockporiom : 9th April 2015 at 10:16.
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Old 9th April 2015, 10:46   #21
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Default Re: Total loss accident, but car under loan. Now what?

Quote:
Originally Posted by SolidSnake View Post
My vehicle, Honda City Corporate 2012 model recently met with an accident. Luckily, nobody was injured. I have the car insured with L&T Insurance India. My IDV value is Rs. 6,53,000. It is under loan from a bank (I have paid half the loan, 2.5 years out of 5).

The Repairs seem to cost around Rs. 6,00,000. So, the surveyor said that the car is coming under total loss and the Insurance Company will talk to me in about 2-3 days.

Now, I have some queries.

1) In case of total loss, will I get the entire IDV value?
2) I like my car very much. I got a quote from outside workshop and they can repair it for around 2 lacs it seems.

So, if I choose this option, what should I do?

In case I choose to repair this vehicle means, I need the auto loan to be open.

3) Is it possible to get the IDV amount - the salvage value and then get the car myself and repair it without closing the loan?

Should I get any permission from the bank? Can I get the claim amount directly without closing the loan?
first things first,

You are supposed to be getting back the IDV as compensation, anything less than that is not acceptable. B'cos the IDV already has the Depreciation factored into that.

Second for a car to be scrapped, there is a RTO procedure, ensure you follow that. Else, if somebody offers to buy the car in "as in where" basis, tell them you will transfer the car out in their name.
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Old 9th April 2015, 10:49   #22
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Default Re: Total loss accident, but car under loan. Now what?

Quote:
Originally Posted by SolidSnake View Post
What are my options now?
They are asking me to take 6 lacs ( IDV - 6.53 lacs) .
I will take this deal. Though you are losing 50k, ohter options are:

1. Fight out for complete IDV and total loss (will have to demonstrate technically that car will not be safe to use after repair)
2. Live with repairs
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Old 9th April 2015, 11:44   #23
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Default Re: Total loss accident, but car under loan. Now what?

Quote:
Originally Posted by ghodlur View Post
Total loss is considered if the repair cost exceeds 75% of IDV. Considering an IDV of 6.53L, the repair cost if greater than 4.85L would result in vehicle being declared total loss since the repair cost quoted by workshop is 6L.


It seems that the Insurance co is seriously arm twisting you into accepting the deal. Get the details of how the quote can be reduced by Insurance co when the workshop has given a quote considering that the difference is substantial between the two quotes. Tell the Insurance co that you will be communicating the issue to the Insurance ombudsman and see the response. If they still stick to their offer, then next course of action can be planned.
Quote:
Originally Posted by rockporiom View Post
What is happening to you happened to me a year and a half back. I was quoted 6 lakhs for a two month old dzire zdi (IDV 7.35 Lakhs) that went for a total loss My Dzire met with an accident (My Dzire met with an accident). You need to pressurise them. The service center usually inflate the repair bill when the car looks like a total loss then the insurance company makes a huge cut on that bill and gets it down. In my case the bill by the service center was 8 Lakhs and the insurance company dropped it to 4 lakhs. That's 50% off.

I would suggest you to haggle a bit more with them. I ended up getting 7.1 Lakhs of my 7.35 IDV value for a two month old car. According to me you could get as far as 6.2 - 6.3 Lakhs from them as they would find some or the other way to argue about reimbursing the full IDV.

Repairing the car is not an option. You can request them to increase the claim amount by mentioning the loan factor that's how I was able to get 7.1 lakhs from my insurer which was effectively as good as my entire loan amount.

Trust me I know how irritating it can be dealing with insurance companies at the time of claim. Their attitude stings you more in case someone is injured in the accident and they pinch you more with their heartlessness. Glad to read that you or any other occupants weren't injured in the accident.

I suggest you to haggle with them for as long as possible and they would heed till a certain point and when you reach that point accept that amount as getting the full IDV is difficult.
Repair estimate is 6.5 Lacs. If going for repair, the insurance liability is around 4 lacs after reducing the depreciation for various parts. Since this amount is less than 75 percent of the IDV, they will only consider it under repair. Is that true?

Otherwise I will have to let go of 50k and settle it as a total loss.

Their attitude is: asking me to either take this or go away.

Should I take this deal?

Last edited by GTO : 15th April 2015 at 10:16. Reason: Typos
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Old 9th April 2015, 11:54   #24
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Default Re: Total loss accident, but car under loan. Now what?

Dear Snake
Push for whatever residual you can get from L&T and settle.

Worst scenario, take what it given.
What is the loan outstanding amount?

Calculate your down payment that you can afford for a new car and accordingly get yourself a new set of wheels.
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Old 10th April 2015, 06:04   #25
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Default Re: Total loss accident, but car under loan. Now what?

Quote:
Originally Posted by SolidSnake View Post
Repair estimate is 6.5 Lacs. If going for repair, the insurance liability is around 4 lacs after reducing the depreciation for various parts. Since this amount is less than 75 percent of the IDV, they will only consider it under repair. Is that true?

Otherwise I will have to let go of 50k and settle it as a total loss.

Their attitude is: asking me to either take this or go away.

Should I take this deal?
Did you have 0 dep insurance? if not then 6 Lakhs is a decent amount that you are receiving. You should haggle a bit more maybe they would come upto 6.2 Lakhs. You should talk to them about the loan and the outstanding amount you have on it maybe they would understand your condition.

Last edited by GTO : 15th April 2015 at 10:17. Reason: Quoted post edited
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Old 14th April 2015, 09:19   #26
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Default Re: Total loss accident, but car under loan. Now what?

Hi,

This is slightly OT but,
My car had an IDV of 275000. I wish to go for Total Loss as Repair costs are estimated to be more than this.
Car is a White Swift VXi from Feb 2011 (Old shape, K-series). It is Haryana 'HR' registered and is located in Bangalore.
Today I just talked to the Claim Manager (ICICI Lombard) and I am told that as Car is from outside state, they are not getting good value for it in the market and hence, they would be paying lesser than the IDV, about 23000. It is Rs45000 lesser than the IDV.

I don't buy this. Experts, please help.

Regards,
Ashish
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