[Ragul]

Hey folks,
Just a hypothetical question. I have a lot of super expensive aftermarket parts installed in my car. Say there is an unfortunate accident and the car is deemed a total loss - But all the expensive aftermarket parts are still useable.

What are the options to salvage the parts from the wreck and re-use/re-sell them while still going with the total loss option? Does the Insurance company own the wreck completely once we claim Total-Loss cover and can they deny the owner access to the parts?

[condor]

Logically, if you have insured these add-on's then they belong to the insurance company.

However, it will be difficult to take out the stuff. In such a case, you may have to try round-about methods, and easier if done asap.
From what I heard, a fellow member could not even take out the alloy wheels.

[Everlearner]

Good question! Logically, Insurer will own only the part/s of the car which are insured by them. Can a lawyer BHPian provide more clarification please?

I remember reading that when Salman khan had the unfortunate accident many years ago, his brother had come immediately and took away the expensive headunit to avoid being robbed of it. Not sure if that is true.

[gkveda]

My view
Accessories do not become insurance company property just because it is insured. The owner of the accessories is still the person who purchased them and has the invoice. While calculation of premium, company will provide break up of the premium for car, accessories, tires, etc etc.

So, in case of total loss, the insurance company is expected to give similar break up of the amount for every item insured in the car. if the accessories are in good shape, and the insurance company estimates accessory value less than what owner expects, the owner can pick them up and claim only for car that is damaged.

Logically, I will not claim insurance for certain items in the car although I have paid premium. Even if I claim, insurance company would not pay if the item is not damaged. So, Why should I leave that item to insurance company?

[sagarpadaki]

Ideally, any accessories installed by the owner should belong to the owner in case of total loss. I do not know what is the say of the insurance company in this aspect. The policy schedule does not mention about the ownership of accessories.

If I have installed an expensive Head unit, I must be allowed to take it out as long as I am putting back the OEM HU. Same goes for aftermarket speakers, amps, tuning boxes etc.

However, in most cases, an accident causing total loss say on a highway (or out of ones area of commute) and resulting in serious injuries to the occupants of car results in the car towed to the nearest police station or highway chowki. Here it is left open to miscreants who in most probability take out whatever they can lay their hands on while the occupants of the car may be admitted to a hospital for treatment.

In cases like flooding, damage due to nature etc where the car is with the owner then I would say by all means remove all the accessories installed.

[locusjag]

In the claim settlement process, you should be asked to sign a form by the insurer which transfers the wreckage's title to the company, for them to salvage and extract the money's worth from it. By that time, you would have seen a line-by-line calculation of how they evaluated the car's worth and the costs involved in bringing it back to its former state; if in that calculation, your accessories aren't involved, you can refuse to sign the aforementioned claim form until they agree to let you have the accessories.

But here's the kicker - are your add-ons/accessories even going to allow your claim to be paid in the first place? Please ask yourself that first.
* If the add-ons are significant enough to warrant a RC endorsement, then that should be absolutely done. Failing this, the insurer can deem the vehicle to be illegal (for want of the RC endorsement) and reject the claim
* If the add-ons can significantly alter the vehicle (in mechanical terms) so as to ostensibly cause accidents (ride height adjustments, suspension alterations, excessive wheel diameter modifications, engine re-maps etc.), your claim can be rejected. If a crash does occur, the insurer's claim adjustor/inspector will squarely place all the blame for the crash on such modifications and reject it. Your rejection rate will vary but these are sufficient grounds for rejection, regardless of your luck!

[akshye]

Originally Posted by locusjag

...
But here's the kicker - are your add-ons/accessories even going to allow your claim to be paid in the first place? Please ask yourself that first.
...

I understand your point. But how about the entertainment accessories? I'm sure they're not even insured, as the insurance papers don't mention them (as far as I know). Well, I may lose warranty, based on the judgment of the servicing agency, but I hope that won't make it illegal per se. Is this assumption correct?

[NetfreakBombay]

Originally Posted by Ragul

What are the options to salvage the parts from the wreck and re-use/re-sell them while still going with the total loss option?

There is a practical aspect to this scenario.

Will the car work if parts are removed ? In most cases, wrecked car will be purchased to be repaired and sold in used car market. Look at the situation from buyer's perspective as well.

In such cases, buyer will probably agree if you provide a replacement Head unit in place of expensive one that is installed; or if you want to get some of the ICE components.

However, asking for parts that will require him to spend money on replacement (such as alloys) will probably not fly. Since buyer will have to repair the car to make it functional so that he can find downstream buyers.

[locusjag]

Originally Posted by akshye

I understand your point. But how about the entertainment accessories? I'm sure they're not even insured, as the insurance papers don't mention them (as far as I know). Well, I may lose warranty, based on the judgment of the servicing agency, but I hope that won't make it illegal per se. Is this assumption correct?

If we want the entertainment accessories to be included, then we should mention them to our broker or directly to the insurer so as to have it included on the policy wordings. Unless the policy contract (the policy is a 2 way binding contract, by the way) has it, the accessories won't be included. And the insurer reserves the right to accept or deny including accessories in the contract.

Originally Posted by NetfreakBombay

There is a practical aspect to this scenario.

Will the car work if parts are removed ? In most cases, wrecked car will be purchased to be repaired and sold in used car market. Look at the situation from buyer's perspective as well.

In such cases, buyer will probably agree if you provide a replacement Head unit in place of expensive one that is installed; or if you want to get some of the ICE components.

However, asking for parts that will require him to spend money on replacement (such as alloys) will probably not fly. Since buyer will have to repair the car to make it functional so that he can find downstream buyers.

In my opinion, you're missing out on a fundamental aspect of what we're talking about here - this is a total loss of an insured car we're talking about. The insurer will get the wreckage's title once the customer signs a dotted line in the claims process and from then on it is for the insurance company to do as they please from that point onwards. So the car's owner will cease to have a say in which buyers to sell parts or the entire wreckage to.

[SnS_12]

Firstly, in case of a total loss chances of you getting inside the car safely and easily to take out the aftermarket parts would be a challenge as the car could have significant body damage.

Secondly, no authorized center will do it for you or will the surveyor allow you to fiddle with a car considering its a total loss claim and is now 100% insurers property.

Lastly, accessories like wheels cannot be taken off as even if you don't have them insured as an add on then you need to provide the OE wheels or maybe take a reduction in the wheel cost from the total claim money offered.

Insurers sell the totaled car to a salvage guy to recover some cost and missing wheels will mean lesser salvage value which will not be acceptable to a insurer.

Plus as mentioned by another member insurer can easily point out to say the accessories added compromised the roadworthiness of the vehicle and hence was not legally allowed to be used in the first place and can reject your claim fully.

[Sameer016]

As far as General Insurance Company is concerned, they most probably settled the claim in Net of Salvage Basis.

Now a days, insurance companies not want the hassle of paying parking charges, tendure charges etc. Net of salvage means, YOU, the insured will keep the salvage and is allowed to scrap it. They deduct a lumpsome amount from your claim amount for the wreck.

Hence, the car still belongs to you, you are free to do whatever you want.

[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! If I want to salvage these parts to sell/ reuse later - what are my options to extract the differential from the axle housing and take it home?

[NetfreakBombay]

Originally Posted by locusjag

this is a total loss of an insured car we're talking about. The insurer will get the wreckage's title once the customer signs a dotted line in the claims process and from then on it is for the insurance company to do as they please from that point onwards. So the car's owner will cease to have a say in which buyers to sell parts or the entire wreckage to.

This is the theoretical process. In reality, Insurance company already has a "panel" of buyers who will pay a certain amount and take ownership of car (for resale).

Customer gets two payments, one from buyer and another from Insurance. These two should add up to IDV.

Quoting from one of the few threads where few members went through total-loss process :

The surveyor told my brother that they will first put the pictures of the car it on their internal portal for quotes from some their 'buyers' who will be willing to buy the car on 'as is where is whatever there is' basis. If they received good quote, in the range of 3-4 lakhs, they will sell the car to that buyer and give us the IDV. However, if they fail to elicit response in the portal, they will approve the repair.

https://www.team-bhp.com/forum/road-...ml#post4557374 (Survivor's tale: Honda City jumps divider and flies into my Hyundai Creta)

[locusjag]

Originally Posted by NetfreakBombay

This is the theoretical process. In reality, Insurance company already has a "panel" of buyers who will pay a certain amount and take ownership of car (for resale).

Customer gets two payments, one from buyer and another from Insurance. These two should add up to IDV.

For the car to be called a total loss ("totalled"), its repair costs have to exceed its net worth (i.e., its invoice value minus depreciation). If it's already termed as a total loss, then there's nothing to do but for the insurer to pay out the settlement promptly to the customer and on the other hand to salvage and recover what they can from the wreckage.

For an insurer to salvage and then pay out to the customer on top of the recovered salvage cost is pure kanjoosiness and a case of them being penny wise and pound foolish in my opinion. It's like when an autorickshaw wallah takes you where you ask him, but tops up fuel on the way, asks you to pay the petrol station attendant and then asks for the remainder of the hire cost when you get to your destination; the autowallah could well have chosen to get you to your destination and then topped up on fuel on his own time. Both choices are technically the same, but one of the choices clearly ruins the customer's experience. A good insurer wouldn't make the customer wait for their settlement until the salvage clears up! And an informed customer will have none of that nonsense.

[NetfreakBombay]

Originally Posted by Ragul

expensive imported parts like Diff-Lockers ...The Insurance company not knowing the value of what’s inside may quote and sell it at scrap value which would be criminal!...

Insurance company does not "value" car, value is determined by a panel of buyers based on description + photos and videos that are uploaded by surveyor.

They deal in bulk and do not care at all about upgrades.

Originally Posted by Ragul

If I want to salvage these parts to sell/ reuse later - what are my options to extract the differential from the axle housing and take it home?

1. Talk discreetly to workshop and offer to replace parts (choose workshops where you can manage this)
2. Replace parts with equivalent so that this does not impact rebuild + resale process

Originally Posted by locusjag

If it's already termed as a total loss, then there's nothing to do but for the insurer to pay out the settlement promptly to the customer and on the other hand to salvage and recover what they can from the wreckage. .......A good insurer wouldn't make the customer wait for their settlement until the salvage clears up!

Have you ever seen total-loss process work in this manner ?