[thanixravindran]

Originally Posted by handsofsteel

Dear all,
In an unfortunate turn of events, my car was totalled three months back.

Is this correct or are they stringing me along? If yes, for what?
Is de registering the car my headache? If so, what after that?
What are my obligations regarding the svc where the car is parked?(i have started getting calls for interim payment for parking/estimate preparation charges)

It’s been 3 months and a week thus far. I have spent the whole summer without a car and the prospect of getting through the monsoon without one doesn’t cheer me up.

Considering that I am now getting some inputs (correct or otherwise) from the firm, I am inclined to hold on a little longer before going all out on social media/ombudsman/irdai etc to name and shame the company.

.

Sorry for your loss and great that you are safe.

On the insurance part, your insurer is buying time to sell the car 'as is' to reduce his payout. This is the reason he is yet to give you scrap report and ask to deregister to sell as scrap. He is hopeful of finding a buyer who can repair and sell it. This is the reason he won't provide total loss report (not possible to be repaired to be road worthy) but use it as constructive total loss case (repairable to be road worthy but not financially viable). In that case, you will have to sign car transfer ownership form, will get money from the buyer and insurer will pay the balance of IDV.

In an ideal scenario, insurance has just to just settle the claim with you and take over the totalled car and they can do whatever they can but this is India and they play all these games. Unfortunate but true.

My suggestion - If you decide to fight, please take a look at your insurance document and find the Irdai plan registration number as all insurance plans need to be submitted to Irdai. Take the section of claim processing and scrap/salvage process whether it belongs to you or company. Send a print out of it along with your claim number in a registered post asking to settle claim within 14 days beyond which you can proceed legally to ombudsman to recover your money.

If you want to avoid confrontation, explore cash loss settlement with insurer, say around 80% of IDV and settle with insurance. If they settle, totalled car is yours. Work with your SVC and sell it off or deregister and sell it to scrap. They will help you as they will also benefit and have contacts with scrappers.

Finally I am not insurance specialist but naming the insurance company is not going to adversely impact your claim anyway.

[ghodlur]

Originally Posted by handsofsteel

5. I have been told that the parking charges start from the time the claim is passed to the the time the vehicle is taken away. Is that true? I am sceptical that if I take away the vehicle now, the insurance company should not wash its hands off citing pilferage of spares/components.

Usually the workshop charges the parking charges from the time the car is confirmed to be a total loss from the Insurance co till the time the car is moved out of their space. Since the charges are mounting suggest to write to the Insurance co about moving the car to alternate location and get their agreement on the same.

If the Insurance co isnt finding any scrap dealer for salvage alternatively you can do it on your own in agreement with the Insurance co. In this case the claim amount will be reduced by the salvage amount and Insurance co can pay the rest. This way their paperwork is also reduced but yours increased as you will need to first de-register the car and then proceed to finding a scrap dealer on your own. The reason in my opinion that Insurance co is delaying to find the scrap dealer is the commission they lose. They want the highest quote whereas they will pass on a smaller amount to you.

[handsofsteel]

Originally Posted by thanixravindran

My suggestion - If you decide to fight, please take a look at your insurance document and find the Irdai plan registration number as all insurance plans need to be submitted to Irdai. Take the section of claim processing and scrap/salvage process whether it belongs to you or company. Send a print out of it along with your claim number in a registered post asking to settle claim within 14 days beyond which you can proceed legally to ombudsman to recover your money.

I think you just hit the nail on the head. I have confronted them now. They have offered to make a part payment(amount undisclosed) and requested me to wait further. I intend to stick to my stand and ask them to issue a total loss certificate ASAP fort de registration and further processing.

Originally Posted by thanixravindran

My suggestion - If you decide to fight, please take a look at your insurance document and find the Irdai plan registration number as all insurance plans need to be submitted to Irdai. Take the section of claim processing and scrap/salvage process whether it belongs to you or company. Send a print out of it along with your claim number in a registered post asking to settle claim within 14 days beyond which you can proceed legally to ombudsman to recover your money.

There are a few numbers in the policy but not a irdai plan regn number. Could you kindly let me know what format would the number be/look like?

[thanixravindran]

Originally Posted by handsofsteel

There are a few numbers in the policy but not a irdai plan regn number. Could you kindly let me know what format would the number be/look like?

Do you have the policy wordings document? If so it is sufficient. It is the same thing filed with IRDAI.

Example: In HDFC ergo, policy wordings document is available in the website. In that document, IRDAN125RP0008V01201819 is the UIN filed with IRDAI. This governs the private car bundled policy from the insurer and insurer cannot have any leeway beyond this document.

Please correspond to the insurance company with registered post for safer side in case you need to fight it out. If you are accepting interim payment, get it in writing the timeline for final settlement to close the claim. Do not accept closing the claim.

[lamborghini]

Originally Posted by handsofsteel

The only alternative/worst case scenario as per him is to get my car de-registered (I assume it’s a lengthy process as it is out of state). They are, therefore, asking me to give them more time to obtain the salvage quote.

A vehicle declared a total loss, and sold as scrap should be de-registered with the RTO in the first place. Your car being out of state will not impact this process provided you can get a cut out of the chassis number along with other documents as evidence as may be required by the Insurance company.

While the de-registering is relatively quick, getting a tax refund isn't.
Depending on your insurance policy, you or the Insurance company will be eligible for the RTO tax refund if and when it does come (still awaiting ours nearly 1.5 years later!).

[handsofsteel]

After much follow up over the last two days, the firm’s rep has now said that they will make 50% part payment to me next week and issue the total loss certificate to commence the de-registering process. While they have not intimated me about the settlement amount, they have informed me that the remaining 50% will be paid post de registration. Will await a formal communication as all this has been verbal so far. Keeping fingers crossed.

[Turbanator]

On the subject, not just on the cars, I think Insurance companies have become stringent about salvation values recently. This is by my own experience with a claim (non-auto but water damage of goods). Surveyor will try to get maximum values by going via auctions and what not as this seems to be a grey area. Regular buyers of such stuff make a cartel and do not bid beyond a certain amount.

Just check if it's similar in your case too (not proper salvage value) and then see if you can independently find someone to buy that car or you can offer them directly as well if you want to go that route.

[lordrayden]

Sorry to read about the loss of your car. I hope the car in its final act, kept everyone safe.

Just out of curiosity, wanted to know if your car was under loan at the time of the claim. If not, wondering if others can throw some light on what more complications could be introduced if the car is still under loan. Would there be a chicken-and-egg situation where the bank will not let you de-register the car without clearing the loan and on the other hand, the insurance company will not payout fully unless the car is de-registered and scrapped?

[thanixravindran]

Originally Posted by handsofsteel

After much follow up over the last two days, the firm’s rep has now said that they will make 50% part payment to me next week and issue the total loss certificate to commence the de-registering process. While they have not intimated me about the settlement amount, they have informed me that the remaining 50% will be paid post de registration. Will await a formal communication as all this has been verbal so far. Keeping fingers crossed.

Ideally you have to get IDV - 1000 which is the compulsory deduction. If insurer is paying 50% now, probably they expect salvage/scrap value to be remaining 50% which is very high though I don't know IDV of your vehicle. So they may try to settle cash loss - salvage value and the totalled vehicle becomes your property to get value out of it. It is a huge hassle. If the salvage amount quoted is high, please register your protest and do not agree. Ask them the quote they received for salvage formally. There are consumer forum rulings citing if insurer in his business capacity cannot find a scrapper, how an end user can do. I will find the link and post it later.

Please read the below link to read different settlements if not already done.

http://www.policywala.com/claim-tota...et-of-salvage/

[handsofsteel]

Originally Posted by Turbanator

then see if you can independently find someone to buy that car or you can offer them directly as well if you want to go that route.

Already tried that, they refused to entertain any quotes from my side.

Originally Posted by lordrayden

Just out of curiosity, wanted to know if your car was under loan at the time of the claim.

No, thankfully no.

[Capri89]

Hi,

At the outset feel very sorry for the situation you are in. Any further updates on this since last one month ?

Also, did you buy the insurance through an agent or directly online. If through an agent then he can do most of the grunt work for you. Otherwise, of course, you are on your own.

Hope for a speedy resolution.

[handsofsteel]

The last month has been spent running behind various quarters for resolution. Hence missed out on giving updates.
After a great deal of “push and pull” through friends and friends of friends, which included a friend visiting the head office of the company at Mumbai and threatening to barge into the CEO’s office, the regional head of the firm started responding in earnest. His version of events was that there were no takers for buying the car in an “as is“ condition and that they were trying to ensure that I avoid the run around behind de-registration.
In early august, they finally issued the total loss certificate asking me and the rto to deregister the car. Considering that my car was registered at a remote town (during my stay there), I had to engage an agent for this process. It took me 30 days to get the de regn done (which included several calls to the concerned officials who, I must say, contrary to the agent’s dire warnings, were very very responsive, at least to me, including calling me back to update on the case). The lower level staff was typical bureaucracy personified (including hiding the signed de-regn certificate for over a week). In the interim, more pressure on the firm through industry veterans (friends of friends) ensured that they made a part payment of nearly 60% of the idv. I was given a consent form, asked to fill up the full idv (less the compulsory deductible) and asked to sign the same (keeping the figures to be received from the scrap dealer blank). I was assured that I could keep the filled up form till total settlement and asked to send a semi-filled form over WhatsApp. Having done that, it still took them three more weeks to release the part payment.
Now, having submitted the de-regn document, I am waiting for the scrapping process and the final payment (from the firm and the to-be-decided-scrap vendor).
In the interim, after some really dire warnings from the svc regarding parking charges and what not, paid them a reasonable amount (again after intervention of a friend of a friend in the parent company). For now, the wreckage continues to lie in the svc awaiting a scrap dealer and final disposal.

Originally Posted by Capri89

Also, did you buy the insurance through an agent or directly online. If through an agent then he can do most of the grunt work for you. Otherwise, of course, you are on your own.

I bought the policy through policy bazaar but wasn’t aware that I could’ve engaged them. Truth being told, I have my doubts on how much they could’ve/would’ve engaged given the tedious process.

[Capri89]

Originally Posted by handsofsteel

I bought the policy through policy bazaar but wasn’t aware that I could’ve engaged them. Truth being told, I have my doubts on how much they could’ve/would’ve engaged given the tedious process.

The agents are normally proactive and cooperative. Going through the agents doesn't cost us extra, but gets them some commission that is borne by the insurance companies. Due to this fact the agents work diligently on our behalf as the insured is both present and future client for them.

[handsofsteel]

Now for the concluding post and an update from my side.
The firm asked me to commence de-regn formalities. Having engaged an agent, this still took me over a month thanks to the palms that need to be greased at every level. I was, meanwhile, getting antsy as it was becoming impossible for me to survive without a car and what with waiting periods stretching aeons, I needed to book one immediately.
After consulting a lot of people from the industry, I decided to ask the firm for a part payment. A lot of people warned me against it as they said this would encourage the firm to delay further. However, with nothing to lose, I decided to risk it. The firm parted with a sum of nearly 65% of the idv within 3 weeks. A consent form was given to me wherein it clearly said that the company would sell the scrap and pay me the balance of the amount with the scrap dealer paying me his component directly. Without asking anyone, I took the liberty of filling in the entire amount (idv-excess (1000/-). After yet another interminable delay, this time, more than 6 weeks, I was given the contact of a dealer. In the interim, I was badgered continuously by the SVC who wanted me to cough up 28k+ (with 20k of this being towards “estimate preparation”). I checked around and found that 5% of the idv was the norm for this charge. Thanks to a friend of a friend, I got this waived off and got away with 8k parking charges (for 6 months +).
Paying this bought me some more time with the svc as the insurance company did not abide by the committed timelines here as well. Finally after another three weeks, the vehicle was towed away by the scrap dealer and payment made to me electronically on the spot.
I was then required to send the signed consent form to the firm’s appointed nodal authority (who was the initial surveyor). After yet another month and persistent follow up, I have received a message now stating that the entire amount has been cleared for payment.

Takeaways-
1. Expect a minimum of 6-7 months for the prices. This is with persistent follow up.
2. My experience was with a private firm - m/s reliance. Except for one gentleman, there was absolutely no support from anyone at any level. I had written mails to the entire chain from the CEO down to the surveyor, absolutely no headway. Not even a reply, nada.
3. The accident was nightmarish as it happened in another state and the vehicle parked in the local svc. Maybe, had I insisted on it being bright to my local svc, things could’ve been different (just conjecture on my part).
4. Will I go to this firm again for insurance? No way
5. Will the others prove any better? I have no idea.

Thank you everyone for all the suggestions/DMs and inputs. Thank you moderators for putting this on the home page which gave this thread the necessary traction.

P.S.
I had initiated a related thread “what car for a Great Dane?” a year or so back and shelved the plan due to the pandemic. This gave me an opportunity to revisit and buy the car. Of All the choices and suggestions, only one car was available to me within 2 weeks. I ended up buying the XL6 alpha AT. Is my Dane happy? He couldn’t care less about the car as long as we are with him��
Am I happy, am more relieved at having put this ordeal behind me and moved on.