[ghodlur]

Originally Posted by shrinath_m2

Hi all, if the insurer is asking me to pay for salvage, can I deny it? The insurance PDF that was mailed to me when renewing/buying does not say a single word on salvage.

The difference in what scrap dealer is quoting vs what insurance is calling salvage value has huge difference. Hence wondering if I should fight it.

There are 2 ways to go about in case of total loss
1. Insurance co pays the claim amount applicable and deals with the scrap dealers for recovering the salvage amount, pockets the difference if in profit
2. Car owner engages the scrap dealer and Insurance co pays the difference form the claim amount minus the salvage.

If the Insurer is asking for salvage which means they think there are parts which can still be be sold instead of scrapping for which the Insurance co will not want to pay. This can be confirmed by the workshop. Insurance co always will try to under value the scrap value either through their own scrap dealers or outside. The value needs to be contested with an alternate estimate from an independent scrap dealer.

[shrinath_m2]

Originally Posted by ghodlur

There are 2 ways to go about in case of total loss

This is for repair, not total loss case.

We've zero dep insurance, there are metal parts that were damaged and repaired. Insurance paid most of it, but expects me to pay a small %age as "salvage costs". Say around 20k I am supposed to pay from pocket.

I asked an independent scrap dealer how much value of the scrap was, they suggested 3.5k at most.

This is where I am confused. There are no useful parts to resell.

[Aviator_guy]

Originally Posted by shrinath_m2

This is for repair, not total loss case.

We've zero dep insurance, there are metal parts that were damaged and repaired. Insurance paid most of it, but expects me to pay a small %age as "salvage costs". Say around 20k I am supposed to pay from pocket.

I asked an independent scrap dealer how much value of the scrap was, they suggested 3.5k at most.

This is where I am confused. There are no useful parts to resell.

Never heard of salvage cost for a repair claim that too with zero depreciation. Something doesn't add up. Can you please elaborate what exactly happened, was it cashless or reimbursement settlement, is it via authorized shop/do they have tie up with the insurance company, which insurance company, what did surveyer say when he approved etc.

[shrinath_m2]

Originally Posted by Aviator_guy

Never heard of salvage cost for a repair claim that too with zero depreciation. Something doesn't add up. Can you please elaborate what exactly happened, was it cashless or reimbursement settlement, is it via authorized shop/do they have tie up with the insurance company, which insurance company, what did surveyer say when he approved etc.

1. Cashless, direct to service centre.
2. Authorised shop, they do have cashless with HDFC ERGO.
3. HDFC ERGO.
4. Surveyor is saying there will be 5-8% salvage charges.

I have never seen the surveyor, only talked to him once, when he called for document enquiry. So now, I have no copy of bill in my hand yet, however ASS is suggesting I've some payment to make due to this salvage charges.
Also, given that it is a 3 year old vehicle, tyre will be given at only 50%!

[Aviator_guy]

Originally Posted by shrinath_m2

1. Cashless, direct to service centre.
2. Authorised shop, they do have cashless with HDFC ERGO.
3. HDFC ERGO.
4. Surveyor is saying there will be 5-8% salvage charges.

I have never seen the surveyor, only talked to him once, when he called for document enquiry. So now, I have no copy of bill in my hand yet, however ASS is suggesting I've some payment to make due to this salvage charges.
Also, given that it is a 3 year old vehicle, tyre will be given at only 50%!

Did the Insurance company contact you or vice versa for this salvage charges?

AFAIK, salvage comes into picture only for total loss claim when the cost of repair far exceeds the residual value of the car. Please check with the insurance company if any doubt.

[shrinath_m2]

Originally Posted by Aviator_guy

Did the Insurance company contact you or vice versa for this salvage charges?

AFAIK, salvage comes into picture only for total loss claim when the cost of repair far exceeds the residual value of the car. Please check with the insurance company if any doubt.

I called them after I heard this from service centre. Insurance folks from sales to surveyor everyone is singing same tune. "It is common to claim salvage of 5% to 8% on deprecated parts depending on age of vehicle."

Somehow this is the first time I am hearing about this.

If you all know this is not the case, let me know. I will move out of HDFC ERGO into something else in time for next renewal (soon).

[Aviator_guy]

Originally Posted by shrinath_m2

I called them after I heard this from service centre. Insurance folks from sales to surveyor everyone is singing same tune. "It is common to claim salvage of 5% to 8% on deprecated parts depending on age of vehicle."

Somehow this is the first time I am hearing about this.

If you all know this is not the case, let me know. I will move out of HDFC ERGO into something else in time for next renewal (soon).

As I said earlier, something is not adding up. Zero dep claims are not supposed to be like this. One only pays for exclusions and compulsory deduction. Unless your policy fine print has some salvage clause (which I highly doubt), you are being taken for a ride.
Tyre and other consumable are not covered fully in zero dep and there are separate cover like tyre protect /consumable cover. So it may be alright if they are asking to pay some amount for those.

Just curious if your accident was serious causing the repair bill to shoot up a lot or did you claim multiple times in the year already?

All in all, if you're not happy with the experience, feel free to shift to another company. Although HDFC ERGO is not known to mislead or cheat customers and your case looks like odd one out.

[shrinath_m2]

Originally Posted by Aviator_guy

Just curious if your accident was serious causing the repair bill to shoot up a lot or did you claim multiple times in the year already?

First time claim in this vehicle’s lifetime. 25% NCB running.

Repair bill is 10 lakhs. Is that too much? I’ve paid 1.8 lakhs in premium so far for insurance. Hence the surprise.

[Aviator_guy]

Originally Posted by shrinath_m2

First time claim in this vehicle’s lifetime. 25% NCB running.

Repair bill is 10 lakhs. Is that too much? I’ve paid 1.8 lakhs in premium so far for insurance. Hence the surprise.

Depends on the car (more so on the declared IDV). If repair bill is comparable to the IDV then it is fine line to repair vs claim total loss. I can't comment on your situation but if company is trying to squeeze every bit out of your pocket, it looks like that repair bill was quite high in their books.
Don't be surprised if the premium to go up significantly next year and/or if they don't offer zero dep. These things depends on the claim history and I have seen this happening to my friends when they made claims (big amount or multiple claims in the year).

[Arka]

Hello, please weigh in with your thoughts about "ARAI certified Anti-theft device discount". How does this apply apply to new cars nowadays? Considering that most cars have things like engine immobilizer and burglar alarm as standard features. So, how does one determine if a new car qualifies for this discount? Thanks.

[ghodlur]

Originally Posted by Arka

Hello, please weigh in with your thoughts about "ARAI certified Anti-theft device discount". How does this apply apply to new cars nowadays? Considering that most cars have things like engine immobilizer and burglar alarm as standard features. So, how does one determine if a new car qualifies for this discount? Thanks.

This discount is for fitting an ARAI certified anti theft device for eg the Autocop devices in the cars which didnt have the immobilizer. With most of the cars these days already equipped with immobilizer the discount is not eligible.

[androdev]

Off late I have been using United India because there is a person who takes care of all the insurance work and he also helped me with a minor claim processing. This gave me the confidence to switch from private insurers as I hate their call-centre approach to customer service. In general, I have started preferring govt/PSU type of service providers to escape from call centre IVRs and chat-bot based customer support.

Received these from car dealership for insurance options and I see the UNITED is almost blacklisted . How reliable and useful are these ratings?

[suavesouvik]

Hello, it's time for renewal of insurance of my 3 year old ignis. I was wondering if it is possible to renew third party insurance separately. I would like to renew just own damages insurance through maruti brokerage, but the online link is including both own damages and third party cover. Is there any way out? Also, has anyone been able to bring down the online price by negotiating through maruti brokerage during insurance renewal? Thanks.

[techspark]

Hi, I am buying a new audi q3 which I have already paid for and the dealer in his invoice had quoted me Rs 1,40,000 for insurance which was bundled in final amount paid by me but in actual he paid rs 1,24,000 to icici insurance company and I got receipt on my email. Should I fight with the dealer and ask for him to reimburse me 15000? I have not yet taken the delivery of the car. Please advise

[ghodlur]

Originally Posted by techspark

Hi, I am buying a new audi q3 which I have already paid for and the dealer in his invoice had quoted me Rs 1,40,000 for insurance which was bundled in final amount paid by me but in actual he paid rs 1,24,000 to icici insurance company and I got receipt on my email. Should I fight with the dealer and ask for him to reimburse me 15000? I have not yet taken the delivery of the car. Please advise

Thats the disadvantage of buying Insurance through the dealer. I doubt if you will get back the extra amount paid coz the dealer will claim that amount as commission. You could have searched the comparator websites to know the actual insurance premium applicable and asked the dealer to match the best code.

You could still stop the transaction if the car hasn't gone for registration as yet.