[Voodooblaster]

Originally Posted by Ragul

Ok, my original concern was about expensive imported parts like Diff-Lockers that are unlikely to be damaged in a total loss situation. The Insurance company not knowing the value of what’s inside may quote and sell it at scrap value which would be criminal!

Scrap dealers contacted by ins cos are very knowledgeable. Especially the ones dealing with high end cars. Rest assured they will derive maximum value out of any available parts

Also all OEM fitments (in stock condition) of the wreck belong to ins co. If you have upgraded your ICE you are supposed to endorse it in your policy. If you have not endorsed it and want to take it away, you will have to fit the original ICE or suffer a reduction in claim amt.

In your case speak with ins co and surveyor before scrap dealer asseses the wreck and salvage stuff you may need.

In a total loss settlement, Ins Co pays IDV minus scrap value and scrap dealer pays you the rest. Scrap dealer assesses the vehicle inclusive of all kinds of fittings and then provides the rate. Ins co may get a lower amt for the accessories, but they are not unduly bothered. This is one of the avenues of profit margin for the scrap dealer. Scrap dealer pays half of the amount as advance to RC owner. The rest is paid after proper transfer of documents. If the scrap dealer finds any part missing when taking over the vehicle, they will deduct it from the amount. (Usually over and above value of missing part)

There are cases when unscrupulous customers change tyres, steal spares and the car tools. Rest assured, the scrap dealers befittingly deal with such thiefs

[Ragul]

Originally Posted by Voodooblaster

Scrap dealers contacted by ins cos are very knowledgeable. Especially the ones dealing with high end cars. Rest assured they will derive maximum value out of any available parts

Also all OEM fitments (in stock condition) of the wreck belong to ins co. If you have upgraded your ICE you are supposed to endorse it in your policy. If you have not endorsed it and want to take it away, you will have to fit the original ICE or suffer a reduction in claim amt.

In your case speak with ins co and surveyor before scrap dealer asseses the wreck and salvage stuff you may need.

In a total loss settlement, Ins Co pays IDV minus scrap value and scrap dealer pays you the rest. Scrap dealer assesses the vehicle inclusive of all kinds of fittings and then provides the rate. Ins co may get a lower amt for the accessories, but they are not unduly bothered. This is one of the avenues of profit margin for the scrap dealer. Scrap dealer pays half of the amount as advance to RC owner. The rest is paid after proper transfer of documents. If the scrap dealer finds any part missing when taking over the vehicle, they will deduct it from the amount. (Usually over and above value of missing part)

There are cases when unscrupulous customers change tyres, steal spares and the car tools. Rest assured, the scrap dealers befittingly deal with such thiefs

Ok I didn’t know there are two parties to deal with here. I thought the car owners just sign off the insurance paperwork and receive the IDV while the owner never gets a chance to touch the car again. So basically what you are saying that in the interim period of damage assesment the car owner should ( and is entitled to) salvage whatever he wants? And then collect the reduced amount from scrap dealer that would be the original o.e.m parts cost minus depreciation.

[Voodooblaster]

Originally Posted by Ragul

I thought the car owners just sign off the insurance paperwork and receive the IDV while the owner never gets a chance to touch the car again.

This is the theoretical procedure. But real world is slightly different.

Originally Posted by Ragul

Car owner should ( and is entitled to) salvage whatever he wants? And then collect the reduced amount from scrap dealer that would be the original o.e.m parts cost minus depreciation.

Car owner is not entitled to it. This depends on your relationship with your insurance company. Also ins co.s will easily agree if you agree to take a larger hit in the claim amt. After all, that maximises their profit