[handsofsteel]

Dear all,
In an unfortunate turn of events, my car was totalled three months back. This has happened out of state with the vehicle now parked in the nearest svc. I raised an insurance claim with the company within the stipulated claim period. The company launched an investigation which ruled out any foul play. This took about a month. Since then, the following has been informed to me :-
a. An internal debate within the firm regarding repairability vs total loss (SVC declared it a total loss same time).
b. Assessment of damage by the insurance company - took nearly 1.5 months.
c. Floating of tender for a scrap quote.I was initially informed that one quote has been obtained (against the minimum two required) and now, in an about turn, they say nothing has come.

I have been strung along with contradictory inputs all this while without any concrete inputs regarding progress of the case. The company provided app for monitoring of the claim status is useless.

Finally, I managed to get a number of the circle head who assured me last month that the claim would now be settled in 15 days. Three weeks later, he tells me that scrap dealers are not quoting for the car and therefore there’s a delay. 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.

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.

I would be really grateful for some specialist opinion from someone knowledgable.

Thanks in advance.

[GTO]

Thread moved from the Assembly Line to the Insurance sub-section!

[SideView]

You have not mentioned which insurance provider it is.

You can escalate to insurance ombudsman, should gets things moving.

[Sran]

Have you visited the insurance company's office yet? Go there, talk to the manager. Telephonic conversation can only get you so far. Do it at earliest because the service centre will take a hefty per day charge. If there is a problem due to it being in other state, get the car towed to your place.

De-registering is your work. You will get refund from RTO for the remaining years left. I am not sure about the timing i.e. when to initiate it, you can read various threads about it. All I know is you have to be stubborn. Some 5 years back, I had to barge in an insurance company's office and had to impolitely speak to a manager for my friends stolen car settlement which was languishing for 3 years. They paid within a month. Good luck.

[fordday]

Originally Posted by handsofsteel

Dear all,
In an unfortunate turn of events, my car was totalled three months back. This has happened out of state with the vehicle now parked in the nearest svc. I raised an insurance claim with the company within the stipulated claim period. The company launched an investigation which ruled out any foul play.

Sorry to hear about the loss of your car. Hope there was no injury to anyone.

But first things first. You need to name the insurance company here so that people are aware when dealing with them. Many of us may be dealing with them on a continuous basis thinking them to be virtuous. But only a catastrophe will reveal their true face.

[Raghu M]

Can you please mention the insurance company, car brand, IDV value etc.? The information is vital to comment. Also, any pics of the unfortunate event? If you provide these details, members on the forum will be able to share contacts of higher ups.

[handsofsteel]

Originally Posted by Raghu M

Can you please mention the insurance company, car brand, IDV value etc.? The information is vital to comment. Also, any pics of the unfortunate event? If you provide these details, members on the forum will be able to share contacts of higher ups.

I needed to understand the correct procedure to be followed by both- the company and the me. I also need to know the alternatives available to me. Kindly understand my predicament - after considerable efforts, I believe I have made some progress. I do not want to jeopardise it by burning all bridges now.

Also, someone told me that a 90 day duration is permissible in total loss, theft and natural disaster cases. Need to know the veracity of the same. What is the typical time frame for settlement of a total loss case?

Is deregistering the only available option to me if the company is not getting a scrap valuation? Is there a possibility of me getting a scrap valuation and presenting it to the company ?

These are the workabouts/doubts that I have.

I shall definitely name the company and elaborate on the entire incident but for now, really don’t know if the idv value, car make etc will have any bearing on the procedure.
Thanks and regards

[speed79]

I am in same boat as my car (2015 Safari Storme) got totaled in a road accident in mid April. Since I was injured in accident with fracture in right hand, I could not pick up my car from the accident spot as local police (AP) did not let my friends and demanded that either me or my father should come and take the car, and car lied there for 5 days, during which time different parts from the car were plundered. Once I was out of hospital, my father went 200 kms in a taxi and got the car towed to Tata Service center in Bangalore. The towing charges were my cost. I chose the SVC which had cashless claim with National Insurance company (as I was hopeful of getting my car repaired as I loved it so much) as the process becomes smoother. The car was declared Total loss by the insurance company.

Once insurance company decided for total loss, and I agreed (I was devastated once i saw some parts plundered from my car), they took my authorization to put an advert in newspaper for salvage auction. They got 4 quotes and the highest bidder has been selected.

I was asked by insurance company to get it de-registered at RTO, so that car can be sold as salvage. The RC cancellation is my responsibility. I went to RTO and applied for RC cancellation on May 9. The agents asked huge amount to get RC-cancelled, so I went on my own for the RC cancellation process. It has been about 6 weeks and I hope to get it completed in this week.

Once RC cancellation is completed, the salvage buyer would take the car away. The car is currently parked at my home as I was advised by SVC and insurance company to take the car home after repair estimation, as I would be charged RS 350 + GST per day as parking charges. So I had paid parking charges for the days car was at SVC + estimation charges.

I hope this information is useful. If you need more details on RC cancellation process, let me know.

[ghodlur]

Originally Posted by handsofsteel

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)

Really sad to hear your car getting totalled and the trauma you are going through now.

Unfortunately there is no IRDAI regulated timelines for settling the Total loss claims and it is left to the Insurance cos to work upon the claim. I hope you must have the written confirmation from the workshop and the Insurance co (through surveyor report) that the car is a total loss. Based on that you should visit the Insurance branch/office at the earliest to get the latest update. In case the Insurance co is haggling over the process, then suggest to write to the Insurance co asking specifically for the timelines for completing the claim process. If things do not move do inform the Insurance co that you are approaching the IRDAI ombudsman.
Reg the de registering it will need to be done by you once you receive the written confirmation from the Insurance co about the total loss.

Unfortunately you will have to visit the RTO to check the local process as again there isnt any standard one.

The workshop will charge you the parking charges for keeping the totalled car which ideally should be taken care by the Insurance claim redemptions but if the charges are hefty, good to get it shifted to a location where the charges are less.

Hope you get a faster resolution to the issue.

[The Mechanic]

Originally Posted by handsofsteel

The company launched an investigation which ruled out any foul play.

What was the reason for having an investigation?
Is it possible for you to explain the whole accident?

Originally Posted by handsofsteel

This took about a month. Since then, the following has been informed to me :-
a. An internal debate within the firm regarding repairability vs total loss (SVC declared it a total loss same time).
b. Assessment of damage by the insurance company - took nearly 1.5 months.
c. Floating of tender for a scrap quote.I was initially informed that one quote has been obtained (against the minimum two required) and now, in an about turn, they say nothing has come.

That is a long period.

Originally Posted by handsofsteel

The company provided app for monitoring of the claim status is useless.

So I am guessing this is one of the Private sector companies

Originally Posted by handsofsteel

Three weeks later, he tells me that scrap dealers are not quoting for the car and therefore there’s a delay. 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.

Is it possible to share what car this is ?

Ask them if you can supply quotes for the scrap car.

Originally Posted by handsofsteel

Is this correct or are they stringing me along? If yes, for what?

Can't comment on that, may be they are indeed facing some issues getting quotes etc.

Originally Posted by handsofsteel

Is de registering the car my headache? If so, what after that?

It is not up to you as far as I am aware.

Originally Posted by handsofsteel

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)

The charges are present and will vary with respect to the location and car company. Ask your service center about the same.

Parking charges usually starts after "X" number of days from the day their work is completed

Originally Posted by handsofsteel

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.

That is up to you


In the mean time kindly get in contact with your claim's insurance surveyor about the status of claim


General information for everyone

As per IRDAI regulations all MOTOR claims above Rupees Fifty Thousand and all NON MOTOR Claims above Rupees One Lakh Needs to be settled by an independent Insurance Surveyor and Loss Assessor

Also to get salvage quotes, all workshops/body shops will have scrap dealers in their contact. Get their contact number and talk with them.

[Lalvaz]

Originally Posted by handsofsteel

I needed to understand the correct procedure to be followed by both- the company and the me. I also need to know the alternatives available to me. Kindly understand my predicament - after considerable efforts, I believe I have made some progress. I do not want to jeopardise it by burning all bridges now.

Also, someone told me that a 90 day duration is permissible in total loss, theft and natural disaster cases. Need to know the veracity of the same. What is the typical time frame for settlement of a total loss case?

Is deregistering the only available option to me if the company is not getting a scrap valuation? Is there a possibility of me getting a scrap valuation and presenting it to the company ?

These are the workabouts/doubts that I have.

I shall definitely name the company and elaborate on the entire incident but for now, really don’t know if the idv value, car make etc will have any bearing on the procedure.
Thanks and regards

Understand your predicament totally. Was in a similar situation in Dec last year when a relative's car was declared Total Loss. Car was lying at the SVC for about 3 weeks, post which we got it home. After 3 months, we got a scrap merchant through the insurance company who took the car and paid x amount. Finally the insurance company gave us the balance amount as the final payout.

In our case, deregistration was not required. We suspect that the scrap merchant plans to repair and re-use the car since it was only 6 months old at the time of accident.

I think you need to escalate the matter to the Ombudsman. It is not your responsibility or lookout to look for scrap merchants. The insurance company is liable to pay the IDV, irrespective of whether they find a buyer for the totalled car or not. So please raise a written complaint to the ombudsman asking him to intervene in paying out the IDV. Also, make sure all your communication with the Insurance company and SVC are in the form of emails/written communications. No verbal assurances please since they can't be relied on in the future.

Now regarding your queries, (1) I don't think there is a documented 90 day period for resolving your issue. If the insurance company claims so, ask them to show you the written policy on their website.

(2) Deregistration is your responsibility if the insurance company has confirmed that you need to do so as the car is being scrapped. Scrapping the car or finding a scrap buyer is not your responsibility, so suggest you don't step into that. Request firmly but politely that the insurance company pays you the IDV since that's the reason you paid them the premium.

All the best !!! Hope everything is sorted soon and there was no injury to anyone involved in the accident.

[handsofsteel]

Originally Posted by Sran

Have you visited the insurance company's office yet? Go there, talk to the manager.
Telephonic conversation can only get you so far. Do it at earliest because the service centre will take a hefty per day charge.

If there is a problem due to it being in other state, get the car towed to your place.

De-registering is your work. You will get refund from RTO for the remaining years left. I am not sure about the timing i.e. when to initiate it, you can read various threads about it.

I have not visited the offices yet as they are located at Chandigarh and I am at delhi.

I agree that telephonic conversations can only take me so far.

I shall explore the feasibility of me getting the vehicle towed/flatbedded to my place

Originally Posted by fordday

Sorry to hear about the loss of your car. Hope there was no injury to anyone.

But first things first. You need to name the insurance company here so that people are aware when dealing with them.

There was no injury to anyone. Thank God for small mercies.

I shall name the firm in good time.

Originally Posted by speed79

I was asked by insurance company to get it de-registered at RTO, so that car can be sold as salvage. The RC cancellation is my responsibility. I went to RTO and applied for RC cancellation on May 9. The agents asked huge amount to get RC-cancelled, so I went on my own for the RC cancellation process. It has been about 6 weeks and I hope to get it completed in this week.

Once RC cancellation is completed, the salvage buyer would take the car away. The car is currently parked at my home as I was advised by SVC and insurance company to take the car home after repair estimation, as I would be charged RS 350 + GST per day as parking charges. So I had paid parking charges for the days car was at SVC + estimation charges.

I hope this information is useful. If you need more details on RC cancellation process, let me know.

Hope you are alright my friend. Wish you a speedy recovery.

In this case, my firm says that he’s waiting for a scrap quote. Only if he is unsuccessful, will he ask me to de register it. At least that’s my understanding. There seems to be a deviation here.

I will definitely get in touch with you once I reach that point of de registration.

Originally Posted by ghodlur

Really sad to hear your car getting totalled and the trauma you are going through now.

Unfortunately there is no IRDAI regulated timelines for settling the Total loss claims and it is left to the Insurance cos to work upon the claim.

I hope you must have the written confirmation from the workshop and the Insurance co (through surveyor report) that the car is a total loss.

Based on that you should visit the Insurance branch/office at the earliest to get the latest update. In case the Insurance co is haggling over the process, then suggest to write to the Insurance co asking specifically for the timelines for completing the claim process. If things do not move do inform the Insurance co that you are approaching the IRDAI ombudsman.
Reg the de registering it will need to be done by you once you receive the written confirmation from the Insurance co about the total loss.

Unfortunately you will have to visit the RTO to check the local process as again there isnt any standard one.

The workshop will charge you the parking charges for keeping the totalled car which ideally should be taken care by the Insurance claim redemptions but if the charges are hefty, good to get it shifted to a location where the charges are less.

1. Thank you sir for the commiseration.
2. I do not have the surveyor report yet. The Company has only informed me that they have accepted it as a total loss. (Repair estimate being 80% of idv). Will ask them for a formal intimation.
3. I have already emailed the entire hierarchy of the firm for firm timelines and have told them that this is my final warning before approaching the ombudsman and consumer court.
4. I have just contacted an agent for the prospective deregistering and he too has asked for the certificate from the firm. So this seems to be a start point.
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.

Originally Posted by The Mechanic

What was the reason for having an investigation?
Is it possible for you to explain the whole accident?

So I am guessing this is one of the Private sector companies

Is it possible to share what car this is ?

Ask them if you can supply quotes for the scrap car.

Can't comment on that, may be they are indeed facing some issues getting quotes etc.

It is not up to you as far as I am aware.

The charges are present and will vary with respect to the location and car company. Ask your service center about the same.

Parking charges usually starts after "X" number of days from the day their work is completed

In the mean time kindly get in contact with your claim's insurance surveyor about the status of claim

General information for everyone

As per IRDAI regulations all MOTOR claims above Rupees Fifty Thousand and all NON MOTOR Claims above Rupees One Lakh Needs to be settled by an independent Insurance Surveyor and Loss Assessor

Also to get salvage quotes, all workshops/body shops will have scrap dealers in their contact. Get their contact number and talk with them.

I was told that an internal investigation is mandatory for every totally loss claim. I was asked a few questions and my statement recorded. It was an unremarkable event.

Yes, it’s a private sector company.

It’s a popular car, still very much in production. Not unique by any stretch.

I have asked them about me supplying quotes and they have said no. So now I have asked them to examine possibility of a part payment (their share) till such time the salvage is done wherein they can pay me the remainder ie the salvaged cost.

The insurance surveyor does not pick up my calls after being caught lying/contradicting himself twice.



Another issue which I failed to mention:-
A month into the claim I got a mail from the firm asking me for a signed consent form and a Ckyc. When asked for the format of the firm, the content and the nature of the agreement for the consent, there was no reply. Earlier this month, to one of my emails asking for a status, I got a reply, claim held up as you have not submitted the consent form. I replied yet again asking for clarifications regarding agreement, address where it had to be sent and the settlement amount- no reply.

[The Mechanic]

Originally Posted by handsofsteel

I have not visited the offices yet as they are located at Chandigarh and I am at delhi.


I agree that telephonic conversations can only take me so far.

Send them an email

Originally Posted by handsofsteel

I shall explore the feasibility of me getting the vehicle towed/flatbedded to my place

I would recommend you not to do that since the claim is already registered and has proceeded to some extend now.

If you do plan to do this, make sure you have written permission from insurance company and the surveyor

Originally Posted by handsofsteel

There was no injury to anyone. Thank God for small mercies.

Glad to know that

Originally Posted by handsofsteel

I shall name the firm in good time.

Please do. It helps in making informed purchases.

Originally Posted by handsofsteel

2. I do not have the surveyor report yet. The Company has only informed me that they have accepted it as a total loss. (Repair estimate being 80% of idv). Will ask them for a formal intimation.

Get that from insurance company and not surveyor.

Originally Posted by handsofsteel

I was told that an internal investigation is mandatory for every totally loss claim. I was asked a few questions and my statement recorded. It was an unremarkable event.

May be it is standard procedure for them.

Originally Posted by handsofsteel

Yes, it’s a private sector company.

Private sector does not mean bad. All insurance companies come under IRDAI

Originally Posted by handsofsteel

It’s a popular car, still very much in production. Not unique by any stretch.

In such case unless it is completely gone it won't be difficult to find a buyer. Even completely gone cars will have some value.

Originally Posted by handsofsteel

I have asked them about me supplying quotes and they have said no. So now I have asked them to examine possibility of a part payment (their share) till such time the salvage is done wherein they can pay me the remainder ie the salvaged cost.

If you really want to get this settled now and mess with them, send them a quote stating that you will buy the scrap vehicle for X amount of rupees.

Even better will be if you can get your quote to be few Rupees above current quote they have.

Then this amount will be deducted from your claim payout, only thing is you will have to then go through the trouble of getting your car to an actual scrap dealer and sorting the associated paper work

Originally Posted by handsofsteel

The insurance surveyor does not pick up my calls after being caught lying/contradicting himself twice.

Send him/her an email with copy to the insurance company.

[rjainv]

One basic question.

When a vehicle is declared Total loss, what insurance pays is up to IDV. IDV does not include the road tax paid to RTO(assuming no RTI cover)

If this vehicle is sold as salvage without de-registering, you'll most likely find that vehicle back on road with repair and resold.

Insurance will pay you IDV minus the scrap value you get above.

Instead if you de-register, you get IDV value back, and also the pro-rated RTO tax (if you follow up, after few years).

So why the reluctance on de-registering?
I would have thought that should be the preferred option, since you get your unused Tax and you ensure the vehicle doesn't make it back to road.

[speed79]

Hope you are alright my friend. Wish you a speedy recovery.

Thanks. I am better now. Just right hand physiotherapy is going on to bring back motion of fingers.

In this case, my firm says that he’s waiting for a scrap quote. Only if he is unsuccessful, will he ask me to de register it. At least that’s my understanding. There seems to be a deviation here.

When insurance company decided for total loss, they said that they will find a scrap buyer, and at the same time they gave me a letter for RC-cancellation which needs to be submitted at RTO for RC cancellation.

4. I have just contacted an agent for the prospective deregistering and he too has asked for the certificate from the firm. So this seems to be a start point.

Yes, the letter from surveyor for REC-cancellation is one of the first documents to be submitted.

Instead if you de-register, you get IDV value back, and also the pro-rated RTO tax (if you follow up, after few years).

Yes, I would apply for pro-rated Road tax refund. I had paid 2.75L as Road tax for Storme. After RC-cancellation, I would apply for road tax refund at RTO.

And I think there is no harm in naming your insurance company. There would be so many total loss cases in India that your insurance company/surveyor cannot identify you on this forum. It will help other users. Personally, I prefer public sector insurance companies over private ones for obvious reasons.