[ghodlur]

Originally Posted by swageo

Is there a provision for them to recalculate the IDV value, lower than what is mentioned in the policy ?. I read somewhere that IDV value in case of total loss is the "current market value", which need not be same as what is in the policy ?

The IDV needs to be calculated on pro rata basis which will be generally 0.833% less for every month since the start of the policy year. The Insurance co generally tend to push the current market value down the customer's throat coz the market value may be lesser than the IDV. One should stick to agreed IDV and not accept the market value.

[swageo]

Originally Posted by ghodlur

The IDV needs to be calculated on pro rata basis which will be generally 0.833% less for every month since the start of the policy year. The Insurance co generally tend to push the current market value down the customer's throat coz the market value may be lesser than the IDV. One should stick to agreed IDV and not accept the market value.

Insurance company is trying settle it as Constructive Total Loss , and wants me to sell the wreck to salvage buyer of their choice. I need to give RC book, RTO forms etc. Totally a shady deal. They were initially not ready to give in writhing that its a constructive loss, but finally agreed.

I had too many questions on this wreck sale, as vehicle is given to unknown salvage buyer, which he may resale or scrap it. But I have big risk as its still in my name as per RTO records.

So I took some legal/friends opinion and here's what

1) Insurance company to give me in writing that its a CTL, and advice me to sell the wreck.
2) I authorise company to get wreck sold, and get me in writing from the buyer that he will be responsible for the vehicle, to repair/re-certify or scrap and update RTO

What options I have if company is not ready for this ?. Ombudsman ? I am not in a hurry, but want to do it properly to avoid future troubles.

[ghodlur]

Originally Posted by swageo

Insurance company is trying settle it as Constructive Total Loss , and wants me to sell the wreck to salvage buyer of their choice. I need to give RC book, RTO forms etc. Totally a shady deal. They were initially not ready to give in writhing that its a constructive loss, but finally agreed.

If the Insurance co wants you to sell the salvage to the buyer of their choice, they might do it themselves. Why force you to sell?

Suggest to start the correspondence with the Insurance co customer care, their top management, Insurance co ombudsman and then IRDAI ombudsman. Highlight the issues faced and question the timelines of IDV reimbursement.

[swageo]

Originally Posted by ghodlur

If the Insurance co wants you to sell the salvage to the buyer of their choice, they might do it themselves. Why force you to sell?

Suggest to start the correspondence with the Insurance co customer care, their top management, Insurance co ombudsman and then IRDAI ombudsman. Highlight the issues faced and question the timelines of IDV reimbursement.

What is the practice followed in such cases when salvage buyer buys from the owner when Vehicle is declared as CTL ?. I am not able to get a clear answer on this

[swageo]

Originally Posted by ghodlur

If the Insurance co wants you to sell the salvage to the buyer of their choice, they might do it themselves. Why force you to sell?

Suggest to start the correspondence with the Insurance co customer care, their top management, Insurance co ombudsman and then IRDAI ombudsman. Highlight the issues faced and question the timelines of IDV reimbursement.

I need help again.

Insurance company says salvage buyer (some bigger bulk buyers) will give an affidavit to me that they will change the ownership with 4 to 6 months. Does this affidavit protect me from any legal issue if car meets an accident during this period ?. They are not ready to disclose the exact details of this affidavit.

I am worried as during this period, there is no insurance coverage too for the car. When I discuss this point, they are trying to laugh at it !!

[Thad E Ginathom]

As one of the Chennai flood victims, a salvage buyer took my car (cash from him, balance from insurance company). He had already sold it on. Goodness knows whose hands it would pass through before the restored vehicle would be back on the roads in private hands again. Of course, this guy wanted all the sale documents with no buyer specified, so that it could be finally filled in by the second owner (myself being the first). I refused to let it out of the gate without those documents completed.

[BigBrad]

Originally Posted by ghodlur

Suggest to start the correspondence with the Insurance co customer care, their top management, Insurance co ombudsman and then IRDAI ombudsman. Highlight the issues faced and question the timelines of IDV reimbursement.

My friend lost his Elite i20 in the recent Kerala floods. It was almost fully submerged as the water level had reached the roof of the car. The car has B2B insurance from Oriental and the repair estimate given is 9.7lacs!! It was bought for around 8.1lacs and the current IDV is 5.6lacs. The surveyor is playing similar tricks with him and is pushing him to agree for a salvage buyer which the company will find after auctions. As per the deal, the insurance co. will pay a nominal value to my friend immediately and the remaining money would be paid as and when the salvage buyer makes the payment. God knows when. My friend just wants to get out of this mess and get the IDV quoted and be done with this.

Few queries on behalf of him:
1. How to get a Total Loss declaration from the insurance co? Surveyor being least interested in this and his only point of contact with the insurance co isn't helping matters either.
2. Is he entitled to 100% IDV or is this a negotiable item?
3. In case of total loss, I believe he can apply for registration cancellation at RTO and get a refund of the road tax paid. What are the formalities to be completed from the insurer's side for this?

Originally Posted by swageo

I need help again.

I would advise you to push for total loss and claim the IDV. If the insurance company sells it to an unknown buyer from a different state, there is no guarantee about what will happen in future. What if the buyer doesn't transfer the car to his name and involves in an accident or the car gets involved in an illegal activity? I have first hand experience of this in my extended family. The insurance co. will simply wash off their hands and we will become scapegoats. Better to avoid such risks. Please DO NOT sign the affidavit, it could very well turn out to be a royal trap.

[Thad E Ginathom]

No to affidavit, but I'd say it is ok to get the proper RTO sale document completed by the buyer and notify RTO himself.

My insurance/salvage deal was quick and smooth. The salvage buyer pays when collecting the vehicle. It is not a "whenever" situation. Just like any car sale, do not let the car go without payment in hand.

I cannot remember dates and timings but I recall being impressed by how quickly the insurance company, in an extreme situation, got everything done. I guess that this may be company-specific: ours was Sundaram.

[swageo]

Originally Posted by Thad E Ginathom

As one of the Chennai flood victims, a salvage buyer took my car (cash from him, balance from insurance company). He had already sold it on. Goodness knows whose hands it would pass through before the restored vehicle would be back on the roads in private hands again. Of course, this guy wanted all the sale documents with no buyer specified, so that it could be finally filled in by the second owner (myself being the first). I refused to let it out of the gate without those documents completed.

Did you get the name of the buyer filled in eto forms before they took the vehicle from you ?

My insurance company is not agreeing and want to give the vehicle to salvage buyer they choose and with blank forms. This buyer seems to be a wholesale buyer whom immediately sell it to smaller players.

Company is asking me why I only have this issue, when they have 1400 other claims without such demand !

I may have to move to ombudsman

[Thad E Ginathom]

Originally Posted by swageo

Did you get the name of the buyer filled in eto forms before they took the vehicle from you ?

Yes. Even had DL copy, etc, as ID.

It is a very hard situation to be in. The whole flood experience is so traumatic. It had been sad enough looking at the wrecked car; it was worse seeing it go. We raised several questions with the our insurers, and they were always helpful. That helped.

[ghodlur]

Originally Posted by swageo

Insurance company says salvage buyer (some bigger bulk buyers) will give an affidavit to me that they will change the ownership with 4 to 6 months. Does this affidavit protect me from any legal issue if car meets an accident during this period ?. They are not ready to disclose the exact details of this affidavit.

I am worried as during this period, there is no insurance coverage too for the car. When I discuss this point, they are trying to laugh at it !!

Firstly why would the Salvage buyer give you an affidavit, if anyone has the right to give it it would be the Insurance co. When they mean they would change the ownership, it is clear the salvage buyer would sell it ( I am sure without repairs to a known workshop who further would sell it to an unsuspecting customer). If the affidavit is coming from Insurance co then it should not be an issue provided the wording clearly reflect your non involvement in anything related to the vehicle.

Whatever you do, do not hand over the original RC till the financial transactions is concluded

Originally Posted by BigBrad

Few queries on behalf of him:
1. How to get a Total Loss declaration from the insurance co? Surveyor being least interested in this and his only point of contact with the insurance co isn't helping matters either.
2. Is he entitled to 100% IDV or is this a negotiable item?
3. In case of total loss, I believe he can apply for registration cancellation at RTO and get a refund of the road tax paid. What are the formalities to be completed from the insurer's side for this?

1. If the repair cost is more than 75% of the IDV, then the car is automatically declared as total loss. Write to Insurance co ombudsman.
2. Generally it is IDV agreed but on pro rata basis. For eg if the policy start is six month back, then the IDV is depreciated by 0.833% every month and IDV is arrived
3. Yes, the road tax can be refunded, a certificate of total loss would be required from the Insurance co. The RTO would also require the surrendering of the original RC. Generally this process should be facilitated by the Insurance co but I guess in your friend's case he would have to do it on his own.

[swageo]

Originally Posted by ghodlur

Firstly why would the Salvage buyer give you an affidavit, if anyone has the right to give it it would be the Insurance co. When they mean they would change the ownership, it is clear the salvage buyer would sell it ( I am sure without repairs to a known workshop who further would sell it to an unsuspecting customer). If the affidavit is coming from Insurance co then it should not be an issue provided the wording clearly reflect your non involvement in anything related to the vehicle.

Whatever you do, do not hand over the original RC till the financial transactions is concluded

Its not going anywhere. Following is the process as per insurance compnay

1) Claim will be settled under "Net of salvage"
2) I give the car to them along with RC original and blank RTO forms signed. Also an agreement authorising insurance company to find a buyer giving best price.
3) Buyer identified by company will give the DD for wreck in my name.
4) Buyer give an affidavit that they will do the name transfer within 4 months
5) Insurance company then start the internal process and eventually give me DD less above wreck value
6) All transaction with buyer is via insurance company.

As I am not comfortable giving car without name transfer, I have objected to this. But no much response from them.

If I want to repair in a local workshop, insurance company will approve only around 20k, not upto 75% of IDV.

[Thad E Ginathom]

Very bad service. Makes me feel that my experience was lucky.

But at the time of major flooding it is really in the insurer's interest to make everything simple and streamlined for themselves.

[swageo]

Originally Posted by Thad E Ginathom

Very bad service. Makes me feel that my experience was lucky.

But at the time of major flooding it is really in the insurer's interest to make everything simple and streamlined for themselves.

If I agree to above process, everything will be smooth. And it seems 1400 claims got settled like this ! and they blame me asking this question...

[BigBrad]

Originally Posted by swageo

If I agree to above process, everything will be smooth. And it seems 1400 claims got settled like this ! and they blame me asking this question...

Are you dealing with Oriental Insurance? I understand all companies are following the same pattern, but from the experiences I heard from friends, Oriental seems to be the worst one.