Quote:
Originally Posted by anujmishra I am too confused (as not sure of real rule around TL vs Partial Loss
settlement) why they (insurance company) are not ready for repair
based settlement, even if the cost of repair is going to be less than
75% of IDV. They are telling based on their cost benefit analysis
total loss is beneficial for them; because they need to pay only
13K(1.1L they are getting from salvage buyer.) to meet IDV of 1.23L.
Where as if they go for repair, their liability may reach 40K. |
Total Loss - If the cost to the insurance company exceeds the 75% of IDV, then they call it a total loss.
Partial Loss - If you accept to repair the car by yourself outside the purview of Insurance company, then its called Partial loss.
The difference is, in total loss, the car is suppose to be handed over to Insurance company and it has to be "salvage". They will give a certificate / document highlighting it and you can apply or adjust that Road tax in next car purchase.
This 75% is not full cost of repair. Its the cost to Insurance company (excluding dep and plastics for which owner pays).
If he says total loss, he should give you full IDV. Since the IDV is declared value after the depreciation.
So, I am surprised with the reaction from Insurance guys. Also, if they make it total loss, then you should get the Road Tax reimbursed from RTO with some official documents from Insurance.
When they say they will give you 13K and the car, it means its cash loss. So, they are escaping from their liability by just paying 13K.
If their liability is 40K, then how can it be a total loss. To make it a total loss, their liability should be more than 90K. And no way, its going to be more than that for this repair.
Quote:
Originally Posted by anujmishra And when I am insisting for repair based settlement instead of total loss
settlement, they are not ready for it, saying its at their discretion
to decide how they want to settle the claim. Any help in this front
would be helpful for me to deal with them. |
This is not true. Then there is no use of having a insurance body and policy. Its always have to be MUTUAL decision. And that why a third party - surveyor is involved.
Which insurance company is this?
Also, these insurance companies will drag it to make sure you become exhausted. And for everyday you lose, you need to pay parking charge in service station if you are not repairing.
I would say, take a day off, meet there superiors, sit and talk with them.
Tell him the terms of total loss and ask them why they can push for total loss or cash loss, when "their" portion of repair bill will be only half of the 75% value.
If you are really in a need to get it repaired, then ask them to get a 2nd surveyor. If not, you can also escalate it to
IRDA. Us the name, and see their reaction.
If possible, collect information from them on mail. Send a mail to their office with your explanation of what is total loss, and how much is it, and why they are urging to make it cash loss. With the answers from them on mail, would help.