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Old 18th May 2009, 19:10   #1
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Angry Unable to claim insurance for car

Hello all,

I have an URGENT query regarding insurance claim for car.

My brother used to own a car (Fiat) in Bangalore and recently he relocated to a foreign country. Before leaving the country, he just took an advance from his friend to sell the car *but* no re-registration was done. Car was handed over to him. Actually, the car was registered in the name of my sister-in-law.

My brother’s friend was driving the car in highways and met with an accident, due to a two-wheeler’s mistake.

When approaching the insurer, my brother mentioned all details through email. Extract of the mail is “I had handed over my car to Mr.xxx after getting an advance amount. I could not transfer the papers to his name as the hypothecation with TATA Motor Finance is not yet closed.

My brother’s friend also has given letter to insurance person. Extract of the letter is “Advance amount has been given and balance amount would be given in an installment”.

But they refuse to cover the damages, saying my brother’s friend is not authorized to claim since the car is still in my sister-in-law’s name. They also said, even my sister-in-law can not claim now, since car has been sold to other person. They were pointing email and letter as the supporting documents for their denial.

Is there any option possible to claim the expenses for repair? Bill comes ~1L .

Last edited by sathya_nars : 18th May 2009 at 19:13.
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Old 18th May 2009, 19:28   #2
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Which insurance company is this? The car is not sold until the Transfer Form has been signed, which has not been done in this case. If the car is still registered in the lady's name and the insurance policy is also in the lady's name, insurance can still be claimed.

However, only the owner can claim - how she can do this while being in another country is something I don't know.
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Old 18th May 2009, 20:26   #3
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As long as the car was driven by a licensed person (person holding a valid DL) there is no reason to deny the insurance.

And for claiming the insurance, all that is needed it the copy of the owners license and car documents. I do not see what this has to do with the location of the owners? As long as the documents are valid, why should they bother?

And do tell us which mombo-jumbo insurance is this?
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Old 19th May 2009, 10:09   #4
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This is going to be tricky. Sure, no transfer forms have been signed, but the insurance company now has on record that the car was sold to someone else. Insurance companies are always on the lookout for excuses to avoid paying up...and they are going to use this technicality against your brother. The rules say that when a car is sold, that person has to get his own coverage.

Meet with their officials in person and see if an understanding can be reached. Else, you have no other option than the legal route.
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Old 19th May 2009, 10:35   #5
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Officially the car is not sold. So why bother about advance etc. Just say the car was driven by Mr.X with a valid DL. This is allowed and the Insurance Company cannot deny the claim. Just make sure you have all the papers. Then tell the Insurance guy not to act smart. Say that you know the law and you will take action against him. I'm sure this is one of the private insurance companies like ICICI Lombard. They usually try these stunts to avoid making payments.
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Old 19th May 2009, 10:47   #6
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Quote:
Originally Posted by sathya_nars View Post
Hello all,

I have an URGENT query regarding insurance claim for car.

My brother used to own a car (Fiat) in Bangalore and recently he relocated to a foreign country. Before leaving the country, he just took an advance from his friend to sell the car *but* no re-registration was done. Car was handed over to him. Actually, the car was registered in the name of my sister-in-law.

My brother’s friend was driving the car in highways and met with an accident, due to a two-wheeler’s mistake.

When approaching the insurer, my brother mentioned all details through email. Extract of the mail is “I had handed over my car to Mr.xxx after getting an advance amount. I could not transfer the papers to his name as the hypothecation with TATA Motor Finance is not yet closed.

My brother’s friend also has given letter to insurance person. Extract of the letter is “Advance amount has been given and balance amount would be given in an installment”.

But they refuse to cover the damages, saying my brother’s friend is not authorized to claim since the car is still in my sister-in-law’s name. They also said, even my sister-in-law can not claim now, since car has been sold to other person. They were pointing email and letter as the supporting documents for their denial.

Is there any option possible to claim the expenses for repair? Bill comes ~1L .
Quote:
Originally Posted by GTO View Post
This is going to be tricky. Sure, no transfer forms have been signed, but the insurance company now has on record that the car was sold to someone else. Insurance companies are always on the lookout for excuses to avoid paying up...and they are going to use this technicality against your brother. The rules say that when a car is sold, that person has to get his own coverage.

Meet with their officials in person and see if an understanding can be reached. Else, you have no other option than the legal route.
As you rightly pointed out this claim is under problem for sure...

Now insurance company is aware that the sale is done from one party to second party I have my doubts how this claim would be payable?

Every thing is wrong in this claim, First of all the papers If there is a sale the RC book should have a new name on it which is not there in your case.

Secondly, Insurance policy has to be changed in your name since there is a sale and a change in name of RC book.

Third you should not have told the insurance company about the sale then this claim was payable 100% but now when you have informed them you can not go back from your stand.

You can not go legal with them because there is a sale on the car and you have not informed them so your case is week.

Request, Negotiation and out of court settlement is the better way out in this claim. - In my opinion.
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Old 19th May 2009, 11:07   #7
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This happened in 1996.

I was rear ended by a bus while waiting at a Signal.
The incident happened right in front of a Motorcycle Cop.
The policeman chased and caught this bus.
Unfortunately this bus was carrying workers of a political party on the way to some meeting.
The police man told me point blank that its going to be impossible to get money from them.
He however helped me lodge an FIR and provided all the papers.

The car went in for repairs. An estimate of 15k came up.
This car was bought from my uncle some months back.
The registration etc had been changed.

Nothing had been updated in the insurance.
When I approached the insurance firm. The guy there told me that no coverage is available.
Looking at my face he then started laughing and said he was joking.
I remember paying 15 Rs or so for some form.

The insurance coverage was applied.
Although the insurance was in my uncles name and the car in my mothers name.
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Old 19th May 2009, 11:28   #8
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Quote:
Originally Posted by bblost View Post
Nothing had been updated in the insurance.
When I approached the insurance firm. The guy there told me that no coverage is available. Looking at my face he then started laughing and said he was joking. I remember paying 15 Rs or so for some form.

The insurance coverage was applied.
Although the insurance was in my uncles name and the car in my mothers name.
Are you trying to say the claim was paid to you with no change made in your insurance policy.

What I understood from your post is the RC book had some different name and in insurance policy was on some different name the claim still got paid? How?
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Old 19th May 2009, 11:42   #9
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Quote:
Originally Posted by rjvora_2000 View Post
As you rightly pointed out this claim is under problem for sure...

Now insurance company is aware that the sale is done from one party to second party I have my doubts how this claim would be payable?

Every thing is wrong in this claim, First of all the papers If there is a sale the RC book should have a new name on it which is not there in your case.

Secondly, Insurance policy has to be changed in your name since there is a sale and a change in name of RC book.

Third you should not have told the insurance company about the sale then this claim was payable 100% but now when you have informed them you can not go back from your stand.

You can not go legal with them because there is a sale on the car and you have not informed them so your case is week.

Request, Negotiation and out of court settlement is the better way out in this claim. - In my opinion.
Just a quick doubt here. The transaction between the two parties is considered a "Sale" only when it is recorded by the relevant authority (Signed transfer document and change of ownership in R.C.Book). In this particular case, though both parties have written about their "intended" sale, it is still not a completed sale unless the above criteria is met.

Eg: Owner of the vehicle could surrender the "advance" to the prospective buyer and completely call the sale off and there is no sale that has happened here.

How could the insurance company use the letter which says a sale was intended, but not carried out as an evidence? If both the parties say that it is understood it is not a "sale" until the entire advance is transacted and until then, the prospect is using the vehicle as a friend of the owner, there is there is no case here. Just my thought!
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Old 19th May 2009, 16:28   #10
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Quote:
Originally Posted by geedeesworld View Post
Just a quick doubt here. The transaction between the two parties is considered a "Sale" only when it is recorded by the relevant authority (Signed transfer document and change of ownership in R.C.Book). In this particular case, though both parties have written about their "intended" sale, it is still not a completed sale unless the above criteria is met.

Eg: Owner of the vehicle could surrender the "advance" to the prospective buyer and completely call the sale off and there is no sale that has happened here.

How could the insurance company use the letter which says a sale was intended, but not carried out as an evidence? If both the parties say that it is understood it is not a "sale" until the entire advance is transacted and until then, the prospect is using the vehicle as a friend of the owner, there is there is no case here. Just my thought!
Well pointed.

@sathya_nars I think you can do one thing: -

Tell your brother to cancel the deal of sale and return his friend the advance payment which was taken by him. As there will not be any sale now so the car is in the name of your brother and insurance also in in the name of your brother so he can claim now. - I think this will be helpful to you. Please ask someone else also before doing this as these are my own thoughts and I can be wrong also.

Please let me know who is the insurer? May be I can help...

Thank you @geedeesworld.

Last edited by rjvora_2000 : 19th May 2009 at 16:29.
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Old 19th May 2009, 16:39   #11
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Not to mention , insurance company is taking you for ride.

They might be right, that owner should claim. This might be done with authority letter (Duly notarised) .

Whatever documents you have produced regarding "Car Sale" holds no legal grounds. Insurance company is just using them to shoo you away.

Met Superiors and indirectly tell them that consumer forum/ going to public options are open to you in case they dont assist in claim.
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Old 19th May 2009, 16:43   #12
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Quote:
Originally Posted by rjvora_2000 View Post
Are you trying to say the claim was paid to you with no change made in your insurance policy.

What I understood from your post is the RC book had some different name and in insurance policy was on some different name the claim still got paid? How?
I paid some 15 rupees or so for a form.
That was used to update the insurance records.

They then paid the insurance coverage amount directly to the M.A.S.S

No bribes were paid as I don't do that.
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Old 19th May 2009, 16:43   #13
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Dont worry at all bro,The emails or letters are not valid as and untill a proper name change is done in the RC book.The issue is that your sis in law has to sign the documents for isurance claim and a GD report from the traffic station should be attached.Licence of the friend should be given to the insurance company as well as the police station.They are TRYING for a possible regection of claim,thats all.
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Old 20th May 2009, 10:01   #14
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Quote:
Originally Posted by bblost View Post
I paid some 15 rupees or so for a form.
That was used to update the insurance records.

They then paid the insurance coverage amount directly to the M.A.S.S

No bribes were paid as I don't do that.
One possibility I can see in this is that the insurance company could have done in your case is that in 96 there were manual policies were issued by insurance companies so they could have endorsed your policy from old date and then given you the claim, otherwise I don't see any way in which they can give you that claim.

But as you said you have not bribe them then why they have done that? That is a surprise to me!!!
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Old 20th May 2009, 11:02   #15
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But as you said you have not bribe them then why they have done that? That is a surprise to me!!!
I have no idea why they did that.
I was in college then. Had all the papers ready. And my shock at knowing that insurance would not apply was completely genuine.

Did not plead or even consider offering a bribe and stuff.

I just remember that guy laughing his head off and saying.
don't worry, you just fill this form up (transfer of insurance), that cost me 15 bucks.
I paid the insurance premium later that year when it expired.

Maybe I reminded him of something and he did it of out good will.
or I am just plain lucky.
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