bhalchandra

Insurance claim on Total loss and Dealer commission

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Guys,

My Bro in law met with an accident in his Scorpio and the car in a total loss condition. Insurance claim has been sent to the bank ( new india Insurance company ).

I am totally surprised by the the procedure the dealer informed us and need expert advice on the same.

Issue : Dealer have made us signed a quotation of the repair ( cost is whooping 13lacs ) where the actual OTR was 11.53lacs Ex nashik . Current IDV is 8.53lacs.

As per dealer we would need to pay the dealer 3% commission on the Estimate and Rs 200 per ay till the car is with them.

My concern:

1. How can estimate of repair is 13lacs when OTR is less than 12lacs for a new car of the same varient ( VLX)

2. Why should we consider the estimate ? whats the dealer role here ?

3. Why should we pay him commission 3% on the repair estimate when we are not going to repair the car and claiming total loss

4. If at all we need to pay the dealer , Why should we pay 3% on estimate which has no relevance , IDV and claim amount to be considered here!

Experts please advice here as how do we deal in such situation , i do not want him to be cheated by dealer

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Dealer may ask some minimum amount for estimation and parking charges etc.. Except that nothing is his business. Estimate may cost more than cost of new cars as if you buy a car in spares it my cost 4 times compare to a new car.

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recently, i had to new my Ritz's insurance for second year. When i checked back into the first year insurance i got to know that although the ex-showroom price of ritz in 2012 in gurgaon was 5.08 Lacs but delear had only mentioned 4.83 lacs in the first year insurance as total insured value.

When i yesterday called them to know the glitch they said "Sir we give insurance on brand new car with a 5% depreciation". Now, who does this??

This is loot.

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@sstar

No, this is the general practice, they always issue insurance at that rate as per IRDA norms.

@ bhalchandra

Think of the bigger picture, the dealers estimate is the first step in the insurance claim settlement.This is mostly done free of cost if the vehicle was purchased from that very dealer and he can be assured that the repair work will be carried out at his workshop,mostly what happens is that people scout from one dealer to another getting the setimates and then present the highest estimate to the insurance company for its consideration.

You have kind off answered your own question ,when you say that you will aim for the total loss.The dealer knows all his effort in preparing a detailed estimate report are to go waste anways , this task is a time consuming task and with a certainity that the dealer gets nothing at the end and so the charges are fair, tell me will you spend an entire day on a job with the certainity that you will not be paid at the end of the day.

Unlike our fellow Forum members :-D

If you have already worked out with the Insurance companies surveyor no need to pay any charges .

The space your vehicle occupies at the dealership/ workshop needs to be compensated for, there is nothing wrong with these charges its better for your own vehicle not to be out in the open to avoid pilferaging of item , not that the workshop staff wont try to give it a shot but its relatively safer if your car went through a photo session before it was handed over or while it was being handed over to the workshop for safe keeping to justify the charges.

If you dont know the surveyor ,You will be better off not butting into the work of a Surveyor, point in case , if the vehicle is on the boderline of what can be repaired and what cannot be repaired (Total loss) , reason being if they dont give the Total loss finding to the insurance company there is a chance you will have to live a repaired car for the rest of its life.You will find yourself even the more cheated then.

The money they are asking for is certainly not correct but this would make the difference of you getting a new car after paying a balance amount or living with a repaired one.The dealer and surveyor ensure that vital elements that ensure vehicle road worthiness are shown as beyond repair , if these things are still alright in your vehicle they will aim to damage them or document them as damaged.

This is critical as you might think that the vehicle should not be repaired after so much damage and they will insist they it can be repaired fully .

IDV is just a figure which is where the calculations start,in no way it comes even close to actual settlement , it all depends on the vehicle condition , point in case, try selling your car at IDV. Not this damaged one , any other vehicle for that matter.

Work as closely as possible with the surveyor and dealer to achieve your Total Loss dream.

Best of luck.

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@sstar

No, this is the general practice, they always issue insurance at that rate as per IRDA norms.

What are the norm? I mean is it stated some where that 5% decpreciation flat on the ex-showroom price the moment we take the first insurance?

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This is something very strange, Till now I've not seen anyone to ask for commission in claim settlement! I think you should raise this issue to the higher authority at the dealer & officials at the insurance company! Though M&M dealer from nashik is a reliable, but I'ld recommend you to cross-check this figures from some other dealer or M&M officials!

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