Car total 3 months ago, insurance settlement pending: best approach?

Car total 3 months ago, insurance settlement pending: best approach?

I’ve been wired all along with conflicting input, without any concrete input as to the progress of the case.

BHPian handheld handle recently shared this with other enthusiasts.

Dear All,

Due to an unfortunate turn of events, my car was declared a total loss three months ago. This happened out of state with the vehicle now parked in the nearest svc. I have made an insurance claim with the company within the specified claim period. The company launched an investigation that ruled out a crime. This took about a month. Since then I have been told the following:

  1. An internal debate within the company about recoverability versus total loss (SVC declared it total loss at the same time).
  2. Damage assessment by the insurance company – took almost 1.5 months.
  3. Floating quote for a scrap quote. I was initially told that one quote had been obtained (against the minimum two required) and now, at a turn, they say nothing has come in.

I’ve been wired all along with conflicting input, without any concrete input as to the progress of the case. The company-provided claim status monitoring app is useless.

I finally managed to get a number from the circuit leader who assured me last month that the claim would now be settled within 15 days. Three weeks later he tells me that scrap dealers do not quote the car and that there is therefore a delay. The only alternative/worst-case scenario according to him is to have my car deregistered (I assume it’s a lengthy process because it’s out of state). So they ask me to give them more time to get the salvage quote.

  • Is this right or are they stringing me along? If so, for what?
  • Is registering the car my headache? If so, what next?
  • What are my obligations with regard to the SVC where the car is parked? (I have started getting calls for an interim payment for parking fees/estimation preparation fees)

It has been 3 months and a week so far. I’ve been without a car all summer and the prospect of getting through without the monsoon doesn’t cheer me up.

Given that I’m getting some (correct) input from the company now, I’m tempted to hang on a little longer before I’m all over social media/ombudsman/IRDAI etc.

I would be really grateful for a specialist opinion from someone in the know.

Thanks in advance.

this is what BHP speed79 had to say about this:

I am in the same boat as my car (2015 Safari Storme) which was totaled in a traffic accident in mid-April. As I was injured in an accident with a fracture in my right hand, I was not able to collect my car from the accident scene because the local police (AP) did not allow my friends and demanded that me or my father drive the car, and car lay there for 5 days, during which time various parts of the car were looted. Once I got out of the hospital, my father went 200km in a taxi and had the car towed to the Tata Service center in Bangalore. The towing costs were my costs. I chose the SVC having a cashless claim with the national insurance company (as I was hoping to get my car repaired as I loved it so much) as the process gets smoother. The car has been declared a total loss by the insurance company.

Once the insurance company decided on a total loss and I agreed (I was devastated to see some parts looted from my car), they took my permission to put a newspaper ad for a salvage auction. They received 4 offers and the highest bidder was selected.

The insurance company has asked me to deregister the car from RTO, so that the 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 charged a huge amount to get RC cancellation so I went for the RC cancellation process alone. It’s been about 6 weeks now and I hope to finish it 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 the insurance company to take the car home after repair estimate as I would be charged RS 350 + GST ​​per day as a parking fee. So I had paid parking fees for the day the car was parked at SVC + estimate costs.

I hope this information is helpful. Please let me know if you need more information about the RC cancellation process.

this is what BHPian Sran had to say about this:

Have you been to the insurance company’s office yet? Go there, talk to the manager. A phone call will only get you so far. Do it at the earliest, because the service center charges a hefty daily fee. If there is a problem because it is in a different condition, have the car towed to your place.

Unsubscribing is your job. You will get the remaining years back from RTO. I’m not sure about the timing ie when to start it, you can read several threads about it. All I know is that you have to be stubborn. About 5 years ago I had to barge into an insurance company’s office and speak rudely to a manager for the settlement of my friend’s stolen car, which had been languishing for 3 years. They paid within a month. Good luck.

this is what BHPian thanixravindran had to say about this:

My condolences on your loss and glad you are safe.

As for the insurance part, your insurer is buying time to sell the car “as is” to lower its payout. This is why he doesn’t give you a scrap report yet and asks you to sign out to sell for scrap. He hopes to find a buyer who can repair it and sell it. This is why he will not provide a total loss report (not possible to repair to be roadworthy) but will use it as a constructive total loss case (repairable to be roadworthy, but not financially viable). In that case, you will be required to sign a car transfer ownership form, you will get money from the buyer and the insurer will pay the balance from IDV.

Ideally the insurance would just need to settle the claim with you and take over the entire car and they can do what they can but this is India and they are playing all these games. Sad but true.

My suggestion – If you decide to fight, please look at your insurance document and look up the Irdai plan registration number as all insurance plans must be submitted to Irdai. Take the section on claims processing and scrap/salvage process, whether it’s yours or the company’s. Send a printout of it along with your claim number in a certified mail requesting that the claim be settled within 14 days. After that, you can legally go to the ombudsman to get your money back.

If you want to avoid a confrontation, research cash loss settlement with an insurer, say about 80% of IDV, and settle with insurance. If they settle, the entire car is yours. Work with your SVC and sell it or unsubscribe and sell it to scrap. They will help you because they also benefit from it and have contacts with scrappers.

Finally, I am not an insurance specialist, but mentioning the insurance company will not adversely affect your claim in any way.

Check out BHPian’s comments for more insights and information.

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