Hello All,
This latest realization is something I experienced while taking an accidental claim on my XUV from SBI GI, which I though I shall share with everyone on T-BHP. Not sure if others are aware of this, but I am sure many would be hearing about this for the first time.
I recently went for an insurance claim on my XUV, at a M&M workshop, which was not registered with my Insurance Company (SBI) as a cashless garage, as a result I had to put in a request at SBI and be involved in some hand holding to start this relationship between SBI and the particular M&M workshop, which exposed me to this insurance system which I would not have thought existed.
I have been driving for ages now. Since last 3 years, I have been taking 0%Dep policies on all my cars and have made it a habit to keep the cars in best shape possible. As a result over the last three years I have had an experience of taking more than 5 claims on my cars, using different Insurance Companies and workshops, and have thus always wondered how are Insurance Companies making money off me? Although my insurance premiums even with decreasing IDVs keeps on escalating every year
Well coming to the incident now.. enter scene with Myself, the Workshop GM and the SBI Surveyor with the car at the workshop and the following discussion happened. The game is mainly on labour jobs, which most workshops will have 2 different quotes for each paint jobs, one for the customer (like you and me) and one for the Insurance Companies (for claim repairs).
In my case, the bonnet, front bumper, rear bumper and left fender needed little denting and repainting, and before going for the insurance claim I had inquired the cost of repainting a panel and I was quoted roughly 10-12k. Which given the size of most panels seemed a little steep but OK, as MSIL charges roughly 4-6k for each panel.
Now the conversation that followed, during most of the conversation I decided to silently observe first:
The Surveyor asked for the quote for panel repainting the GM said 4.5-6k,
Surveyor: "OK 4.5 for which and 6 for which?"
GM: "these are our rates depending upon our arrangement with the insurance company and the surveyor"
Surveyor: "GM sahab hamare liye kya karoge, pehli gaadi karwa rahe hain aapse"
GM: "4.5k aapke liye, final rate"
(at this point I was shocked that already the insurance company rate is less than 50% of customer rates, I kept quite)
Surveyor: "OK, let me get back"
Surveyor, pulls me to a side, tells me that they are asking too much, he has already got a quote from SBI registered workshop saying 3.5-4k. He requested me to let him take the car to that workshop, as SBI would not pay more than that.
Me: " sir yeh mere se to 10k maang rahe the, aapko yeh zyada lag raha hai??"
Surveyor: (calls up the other workshop puts the phone on speaker and let me listen in the confirmation of 3.5 - 4k) Then tells me, he is just coming from the Porsche showroom next door, where he has just approved a claim and they are charging..
..5,000 for one panel!! (at this time I almost was abt to laugh on his face, before he dials again, puts on speaker and there was the confirmation, then he also showed me the pic on his camera)
Now, I am confused and furious at the same time. Confused, on what to tell him on the decision on my claim and furious and frustrated for the countless times I must have thought that Insurance Company paid a bomb for the repairs, but when they wouldn't have. I was also thinking in non-0% dep policies, was I paying almost the entire bill (in the veil of Customer rates and depreciation calculated on that??
)
Well coming back to the point, I quickly told the surveyor that I am not taking my car to any other workshop and that he can haggle all he wants with the GM and fix up a rate. He tries to convince me otherwise, but I was already feeling like a Fool and refused to budge. He then negotiated the final rate at 4k a panel.
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.
So in short, this is how Insurance Companies in partnering with the Workshops make money off the unsuspecting poor customers like us.
Since then I did some research, and spoke to a couple of workshop owner friends, to realize its a common practice.
I may be wrong, but please do write in if you are aware of this unscrupulous CON.
I will write in another post soon, of a case of a write-off of a 2 weeks old XUV, which was at the same workshop, again because of the workings of this system between the Workshops and the Insurance Companies.
Guys please be aware of this now every time you make a claim, there may be a way to negotiate your rates and avoid these small claims totally.
Mods: Please move to an existing thread, if there is one. I checked couldn't find any.