Total Loss - clarifications

Dear All,

Pls clarify. Incase the accident car is declared as total loss, then should the RC original be handed over to the insurer?

Is it possible for the 'scrap' buyer to repair the car and sell for a profit (ex used car dealer, ASC etc). this can be avoided if the original RC is retained bby the owner.

incase the owner buys the total loss car as scrap and repairs the same, what will be the status of the insurance. Current and future.

thanks

Arun,

Insurance company will take away all the papers of the car when they repay you the loss amount alongwith the car. Its upto the insurance co. to decide what to do with the car.

Why will anyone buy a total loss car when it is beyond repair ??

Dear manish,

in my case, thhe accident is only on the rear and front surface (bumpers, fenders, bonnet, windshield etc) No problem with the engine and other running parts. In fact I drove the car after the accident to the police and then the ASC. No chassis or frame damage. So the car is quite repairable.

The IDV is 90 K and the repair cost will come to abt Rs. 75 - 80K. Here, the insurance company will have to pay abt 50K. The surveyor informed that eventhough their liability is well below 75% of IDV, the company will still go for total loss since the scrap quote is Rs. 50k and then they will have to pay only Rs.40K instead of the repair cost of 50 to 55K.

Can the insurance company do this? I mean. if their liability is well below 75% of the IDV, can they still go for total loss since it is cheaper for them? In this case, I think the ASC is trying to buy the car for scrap rate, repair and sell for profit. Previously, the ASC had offered to take the car as is for Rs.70K if I go for new santro GL pLus. Since I want a diesel car in future, I declined.

How do I tackle this? For now, I have told to go ahead with the repairs since the insurer has survayed the damage. Then I plan to claim with the bills. Since I plan to use the car for another year, it is profitable to me to repair. But I need to know if the insurance company can claim total loss in this case and not pay the extra 10k liability for repairs.

Requesting advise to tackle this issue.

AFAIK, Insurance company do not give original RC book to the buyer of damaged car under total loss. Even they may get back the plate where the VIN is marked. They give the car by preparing notarised document. You just steak to what is favourable for you. Best of luck.

thanks for the feedback.

Very much simlar case happened with me. My car was declared as total loss.I got the amount very near to the IDV. Insurance company paid 60% and remaining 40% was paid by the vendor who purchased my car. The vendor has a freedom to do whatever he wants to do with it.

thanks for the feedback. In my case, I have decided to repair the car and the insurance will pay the balance amount (Rs. 40K) equivalent to their share on the total loss. I will hopefully be paying about 30 to 40k from my end.

I intend to keep the car till about mid next year and then try to get another car. lets see.

in your case, did you hand over your original docs to the insurer?

thanks.

Yes. Since it's as good as they(+vendor) purchased the damaged car from me. Mine was second hand M-800 and I had planned for the replacement in next 3-4 months hence opted for total loss.

But you need to be firm on the contributions that has been agreed upon between you and the insurance company

Thank you all for your clarifications. One more detail to clarify.

Since I am repairing the car after insurance company has declared it total loss, what is now the status of my insurance after I get the car repaired? My renewal is due this december 2011. Will my insurance (at least 3rd Party) be valid till then and can I renew my insurance?