Civic submerged at Dakshin Honda EDIT: Now resolved

Gilead · 18th August 2009, 15:01

Wow! Do car dealers typically have insurance for 'accidents' that occur inside their premises? How do they work out the premium etc? I hope your friend gets a good deal out of this. They should throw in something extra for mental agony as well.

sushrutha · 18th August 2009, 15:19

When test driving , Dakshin Honda makes you to sign a Decleration form(Briefly - In case of any accident while test driving, the driver has to fully compensate the cost of damage), Now it's their responsibilty(talk with ins. company) to fully compensate for the car which was in their care.

ajmat · 19th August 2009, 22:36

The incident happened on saturday. Although DH informed that flooding happened, it took aound 4 days to say that the car will be a total loss. My colleague has not gone to see the damage. He does not want to as he really stepped up to buy it.

He demanded to meet the MD and DH ensured this - no stonewalling, no hiding unlike other incidents that we have seen

We met him at Lavelle Road. He first explained that the tank drainage had been blocked by garbage causing the tank to overflow. 24 cars are damaged - accords, civics and citys. He empathised and said that they would do what they could to minimise the inconvenience. This is not an incident where they have experience but they are fully covered by insurance. United India who had just come on site.

DH have had two total losses - one due to an accident and one due to submerged all covered under insurance previously. DH have lost their parts warehouse and all systems. He is overseeing the recovery every morning. We then put forward our concerns

Compensation on the car - We need to await what the insurers will assess before committing

LTT - He has initiated talks with the RTO on expediting reimbursements, it sounded as if it will be easier if one looks to buy a new Honda then only the differential will need be paid.

Foreclosure Penalty - They would influence this with the finsnce companies

Who is going to deal with this ?- we will not be passed around - The MD has designated his son to be the single point of contact

Will the damaged cars find their way back on road? - Insurers will ensure that proper salvage companies dispose of it.

He was candid that they are finding their feet on this and to bear with them Appreciated that we were not aggressive and being reasonable.

Although there have been seepages earlier, they had 8 pumps in the basement but to no avail. My colleague then vented his frusatration on the initial handling and the fact that contingency planning had been poor.

We left it at that and then discussed cars etc. He was amazed tha we had exact sales figures of the Civic etc.

My guess is that we might get a sweeter deal on a new Civic as compared to getting money

Pluses- Openness, facing upto facts, understanding what needs to be done on all fronts

Minuses - not prepared for disasters, the seepages were a precursor

Will keep you posted

Axe77 · 23rd August 2009, 22:39

They seem to be handling this in quite a customer friendly way - quite impressed with that. My sympathies go out a little to the dealer as well (notwithstanding that they should have taken better pre-emptive measures). I'm sure insurance will not cover complete loss and perhaps some financial hit (minor hopefully) will trickle down to the car owners as well.

I hope Honda does its bit and chips in a little too with very special offers for the affected people replacing their cars with another Honda.

amtak · 23rd August 2009, 22:50

Aha, That's one hell of a dealer. Kudos to DH.

rageshgr · 23rd August 2009, 23:11

Pretty strange situation, weird problems, great attitude from the dealer. Hope everything turns out fine without much loss to the owners and the dealers.

ajmat · 25th August 2009, 11:36

SO far, nothing much has happened. Insurance guys are still wrangling with dealer about values. Also there is some issues on the LTT refund.

The owners have been seeking each other out from the number plates and forming a group.

GTO · 25th August 2009, 17:53

Quote:

The MD has designated his son to be the single point of contact

Ajit, its nice to hear that the leader has stepped forward and there is a direct channel of communication with the decision maker.

Though, the only thing that really matters is how your friend (and other car owners) are compensated. Look forward to hearing on the actual numbers.

ajmat · 25th August 2009, 19:31

Quote:

Originally Posted by GTO

Ajit, its nice to hear that the leader has stepped forward and there is a direct channel of communication with the decision maker.

Thats what I told him - they are confronting the situation and doing what they can. The MD visits the stricken site every morning to review. Anyway numbers....!

ajmat · 29th August 2009, 07:48

We were called for a meeting with the MD, Son and one other person

They rang to confirm but would not give any information on the phone.

We were met on time and utmost politeness and courtesy.

Bad news is that the insurance will give only 8.33L less 5%. Market value was not much more and too much subjectivity in this. He had the details of the damaged car, mileage etc so could talk facts and he stuck to them. Acknowleged the fact that the car only had 7500 km so value would be higher.

All are losers in this situation - the owner, the dealer - Rs 90L of parts inventory lost + a lot of garage equipment + 24 cars for repair. The MD stated intent to compensate what ever he can based on what option my colleague wanted.

Market reality is that the market segment has crashed (thanks vasudeva and GTO!) so prices are depressed. They proposed the following options

1: They procure a secondhand Civic of a similar age from open market + some sweetner since my friend will be listed as second owner- not an option

2: Offered a black demo Civic one year old on trade plates which would list as a first owner. Something small would need to be paid. Car was black which my friend did not want

3: A good deal on a Civic or a Jetta. They only have civic auto's as all manuals are sold out. They could not commit on a deal on the new Civic as the price has not been announced.

We are waiting for some hard figures on option 3. My friend has to decide vis a vis his financial situ also.

We then left and decided to take a side road to view the car. The tank is some distance separated by the road, the new car holding area and the workshop - so it was a remote possibility...which happened. All the cars in the holding area were intactand water merely flowed past.

The Civic looked ok externally but interior was a mess. I have pics but will share once things are closed. There is no way that car will drive again. Only parts salvagable ar the body panels

Will keep you posted on what happens next but I have a high respect for Dakshin Honda for confronting and being timely on moving to resolve this without having to prompt any manufacturer intervention

14000rpm · 29th August 2009, 08:00

what happens to the ICE ? what if a particular had 1.5L worth of ICE.who is goingto pay for that and how will that be handled by the insurance?

sudev · 29th August 2009, 08:16

I am impressed with professional and upfront way DH is handling the situation. Yes it is a loss to your friend but given the circumstances, and a win-win situation being impossible, least loss out is the way forward.

Before others jump in just think if this was a total loss due tree falling on your car while parked at best you would be in similar situation. So least loss forward is the way.

diffsoft · 29th August 2009, 08:43

Irrespective of the outcome, DH seems to have handled it extremely prefessionally. Improves confidence in their dealerships (including VW).

What does the rule book say for LTT refund under these circumstances? Does the RTO have a mechanism to handle these situations?

Thanks and look forward to updates. Hope this one closes satisfactorily.

Cheers,

shivshanker · 29th August 2009, 09:21

ajmat,

Could this be a case of sbotage to claim insurance on spares for a book value of 90L, spuriously sell some in the open market, make some black money, claim insurnace, write off some more losses claim tax expemtions.

As the holding area for the cars was not affected, I guess your friends car was a case of a wrong car at the wrong time in the wrong place.

I am smelling garbage.

Ps: I am no sadistic ******* out here, who is seeking pleasure out of somebody's loss, but am not convinced that something like this clould happen when there are supposed to be security guards etc.

Cheers!

ajmat · 29th August 2009, 09:31

Quote:

Originally Posted by shivshanker

ajmat,

Could this be a case of sbotage to claim insurance on spares for a book value of 90L, spuriously sell some in the open market, make some black money, claim insurnace, write off some more losses claim tax expemtions.

Cheers!

I beg to defer. This is a successful dealership. The MD remarked that Honda will not allow them to use parts which although not damaged had been in contact with water. The insurers don't buy this so more misery for them

18th August 2009, 15:01	#16
Gilead Senior - BHPian Join Date: May 2009 Location: Chennai Posts: 2,142 Thanked: 60 Times	Wow! Do car dealers typically have insurance for 'accidents' that occur inside their premises? How do they work out the premium etc? I hope your friend gets a good deal out of this. They should throw in something extra for mental agony as well.
	() Thanks

18th August 2009, 15:19	#17
sushrutha Senior - BHPian Join Date: Mar 2006 Location: Chikmagalur/Ban Posts: 1,703 Thanked: 333 Times View My Garage	When test driving , Dakshin Honda makes you to sign a Decleration form(Briefly - In case of any accident while test driving, the driver has to fully compensate the cost of damage), Now it's their responsibilty(talk with ins. company) to fully compensate for the car which was in their care.
	() Thanks

19th August 2009, 22:36	#18
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,866 Thanked: 27,981 Times View My Garage	Update The incident happened on saturday. Although DH informed that flooding happened, it took aound 4 days to say that the car will be a total loss. My colleague has not gone to see the damage. He does not want to as he really stepped up to buy it. He demanded to meet the MD and DH ensured this - no stonewalling, no hiding unlike other incidents that we have seen We met him at Lavelle Road. He first explained that the tank drainage had been blocked by garbage causing the tank to overflow. 24 cars are damaged - accords, civics and citys. He empathised and said that they would do what they could to minimise the inconvenience. This is not an incident where they have experience but they are fully covered by insurance. United India who had just come on site. DH have had two total losses - one due to an accident and one due to submerged all covered under insurance previously. DH have lost their parts warehouse and all systems. He is overseeing the recovery every morning. We then put forward our concerns Compensation on the car - We need to await what the insurers will assess before committing LTT - He has initiated talks with the RTO on expediting reimbursements, it sounded as if it will be easier if one looks to buy a new Honda then only the differential will need be paid. Foreclosure Penalty - They would influence this with the finsnce companies Who is going to deal with this ?- we will not be passed around - The MD has designated his son to be the single point of contact Will the damaged cars find their way back on road? - Insurers will ensure that proper salvage companies dispose of it. He was candid that they are finding their feet on this and to bear with them Appreciated that we were not aggressive and being reasonable. Although there have been seepages earlier, they had 8 pumps in the basement but to no avail. My colleague then vented his frusatration on the initial handling and the fact that contingency planning had been poor. We left it at that and then discussed cars etc. He was amazed tha we had exact sales figures of the Civic etc. My guess is that we might get a sweeter deal on a new Civic as compared to getting money Pluses- Openness, facing upto facts, understanding what needs to be done on all fronts Minuses - not prepared for disasters, the seepages were a precursor Will keep you posted Last edited by ajmat : 19th August 2009 at 22:37.
	() Thanks

23rd August 2009, 22:39	#19
Axe77 Team-BHP Support Join Date: Jun 2009 Location: Mumbai Posts: 6,928 Thanked: 20,673 Times	They seem to be handling this in quite a customer friendly way - quite impressed with that. My sympathies go out a little to the dealer as well (notwithstanding that they should have taken better pre-emptive measures). I'm sure insurance will not cover complete loss and perhaps some financial hit (minor hopefully) will trickle down to the car owners as well. I hope Honda does its bit and chips in a little too with very special offers for the affected people replacing their cars with another Honda.
	() Thanks

23rd August 2009, 22:50	#20
amtak Senior - BHPian Join Date: Oct 2006 Location: Mumbai - The city of Sea Link!!! Posts: 2,915 Thanked: 901 Times View My Garage	Aha, That's one hell of a dealer. Kudos to DH.
	() Thanks

23rd August 2009, 23:11	#21
rageshgr BHPian Join Date: Jun 2008 Location: Chennai/Vaikom Posts: 549 Thanked: 551 Times View My Garage	Pretty strange situation, weird problems, great attitude from the dealer. Hope everything turns out fine without much loss to the owners and the dealers.
	() Thanks

25th August 2009, 11:36	#22
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,866 Thanked: 27,981 Times View My Garage	SO far, nothing much has happened. Insurance guys are still wrangling with dealer about values. Also there is some issues on the LTT refund. The owners have been seeking each other out from the number plates and forming a group.
	() Thanks

29th August 2009, 07:48	#25
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,866 Thanked: 27,981 Times View My Garage	We were called for a meeting with the MD, Son and one other person They rang to confirm but would not give any information on the phone. We were met on time and utmost politeness and courtesy. Bad news is that the insurance will give only 8.33L less 5%. Market value was not much more and too much subjectivity in this. He had the details of the damaged car, mileage etc so could talk facts and he stuck to them. Acknowleged the fact that the car only had 7500 km so value would be higher. All are losers in this situation - the owner, the dealer - Rs 90L of parts inventory lost + a lot of garage equipment + 24 cars for repair. The MD stated intent to compensate what ever he can based on what option my colleague wanted. Market reality is that the market segment has crashed (thanks vasudeva and GTO!) so prices are depressed. They proposed the following options 1: They procure a secondhand Civic of a similar age from open market + some sweetner since my friend will be listed as second owner- not an option 2: Offered a black demo Civic one year old on trade plates which would list as a first owner. Something small would need to be paid. Car was black which my friend did not want 3: A good deal on a Civic or a Jetta. They only have civic auto's as all manuals are sold out. They could not commit on a deal on the new Civic as the price has not been announced. We are waiting for some hard figures on option 3. My friend has to decide vis a vis his financial situ also. We then left and decided to take a side road to view the car. The tank is some distance separated by the road, the new car holding area and the workshop - so it was a remote possibility...which happened. All the cars in the holding area were intactand water merely flowed past. The Civic looked ok externally but interior was a mess. I have pics but will share once things are closed. There is no way that car will drive again. Only parts salvagable ar the body panels Will keep you posted on what happens next but I have a high respect for Dakshin Honda for confronting and being timely on moving to resolve this without having to prompt any manufacturer intervention
	() Thanks

29th August 2009, 08:00	#26
14000rpm Senior - BHPian Join Date: Dec 2007 Location: Helsinki Posts: 2,342 Thanked: 5,564 Times View My Garage	what happens to the ICE ? what if a particular had 1.5L worth of ICE.who is goingto pay for that and how will that be handled by the insurance?
	() Thanks

29th August 2009, 08:16	#27
sudev Distinguished - BHPian Join Date: Jan 2008 Location: Gurgaon Posts: 3,838 Thanked: 3,179 Times	I am impressed with professional and upfront way DH is handling the situation. Yes it is a loss to your friend but given the circumstances, and a win-win situation being impossible, least loss out is the way forward. Before others jump in just think if this was a total loss due tree falling on your car while parked at best you would be in similar situation. So least loss forward is the way.
	() Thanks

29th August 2009, 08:43	#28
diffsoft BHPian Join Date: Nov 2007 Location: Bangalore Posts: 773 Thanked: 404 Times	Irrespective of the outcome, DH seems to have handled it extremely prefessionally. Improves confidence in their dealerships (including VW). What does the rule book say for LTT refund under these circumstances? Does the RTO have a mechanism to handle these situations? Thanks and look forward to updates. Hope this one closes satisfactorily. Cheers,
	() Thanks

29th August 2009, 09:21	#29
shivshanker BHPian Join Date: Jul 2007 Location: Mumbai Posts: 345 Thanked: 201 Times View My Garage	ajmat, Could this be a case of sbotage to claim insurance on spares for a book value of 90L, spuriously sell some in the open market, make some black money, claim insurnace, write off some more losses claim tax expemtions. As the holding area for the cars was not affected, I guess your friends car was a case of a wrong car at the wrong time in the wrong place. I am smelling garbage. Ps: I am no sadistic ******* out here, who is seeking pleasure out of somebody's loss, but am not convinced that something like this clould happen when there are supposed to be security guards etc. Cheers!
	() Thanks