Re: 3 Month old Skoda Fabia TDI : Total loss Insurance Query Quote:
Originally Posted by Jignesh
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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