Car - Major Damage & Total Loss - How much of the IDV can I claim

Great Ishwar. You have executed it very well.

And I agree that in such cases we need lot of case study and patience.

Fight for whatever you have decided to get. Minimum value anyways it comes.

@ others, We shouldn't bother about no claim bonus. If any repair costs 3-4k then go for it.

Atleast your car gets whatever it has to. All the insurance companies are money minting companies. It all depends on how you deal with them. And always be at more profit side. You pay 10k+ insurance and ignore 4-5k amounted repairs is not acceptable. When you want to sell your car, you loose money on these repairs. So better keep your car in a proper shape irrespective of whatever it costs to Insurance. This adds value for your driving also. You can alays drive with a free mind.

Friends, here is an update on my claim process.

Bajaj Allianz (BA) has disallowed certain major items recommended by the surveyor. The item being the body shell costing about 1.4 lakhs. The company seems to have influenced the surveyor to submit the second report without the shell. Even the surveyor tells me in confidence that the structurally the car needs a new shell.

When I asked for the surveyor's report, BA sent me an internal document that bears no details or signature of the surveyor. 

Now they have asked me to start repairing the car too, since their offer of Rs 1.3 lakh was not acceptable to me. Earlier they also asked me to dismantle the car without giving explicit instruction to start repairing (knowing well that the dismantle car will get much less value). 

I can see that the case is heading to the insurance ombudsman.

In my case, Bajaj Allianz even influenced the surveyor to modify the first report (that included replacement of a body shell). Surveyor was asked to submit a report without replacement of a body shell, but including denting work, which is a lot cheaper. Surveyor himself informally told me this. Now I am dragging bajaj allianz to the insurance ombudsman. We must make more people aware of trickery bajaj allianz plays with consumers. Once the case is closed, I will write a case report on how they tried to cheat and circulate it on the net. 

But be clear about the requirement. Repair or replacement. Consult with the garage and any garage would prefer to repair because it gives them more profit than just replacement. Despite high value the profit will be very marginal in case of body items. In spite of this certain damages could not be repaired and this is where replacement comes in.

So insist on replacement if the damages so warrant. Never mind the surveyor's opinion. Fight it out.

One more important issue we have to consider. Most of the structural repairs could be found out on close inspection. This will affect the resale value.

So be careful and do not yield to pressure from Insurers. At the same time don't fight, just assert things. They will come to know you are not a pushover after a few discussions.

I was an Insurance Surveyor for 20 yrs and a garage owner now for 15 yrs. So knowing both sides I will be glad to help on any issues on insurance.

Hi,

I own Ford fiesta ZXI (diesel) reg. on 6-Jan-2010

IDV ~ INR 703000

Unfortunately i met with an accident on 2-Jun-2010 and the estimate was ~12 lakh which was given by the ***** servicing company.

The insurance survayor did survey and estimated as below:

SUMMERYOF ASSESSMENT Estiamte Assesed
Spare parts total amount 194.311.00    471.317.26
Labour charge                   59382.00      51,454.95
Spot repair/ towing.                                      0.00
Anticipatory parts                                 75.000.00
Gross amount                  56,464.00    597,772.21
Lesspolicy excess                                     500.00
Lesssalvage value                                29.035.94
Approximate repair charge assesed      568,236.27
IDV = Rs. 703016.00
75% of the IDV = Rs. 527262.00
Total Bil amount=Rs. 692.173.67
werck = Rs. 100000.00
Salvage loss laibility = Rs. 575000.00
Cash loss laibility = Rs. 312529.95

From this estimate I found that he have considered 5% depreciation for the parts which is wrong and it is 0% because the vehicle is less than 6 months old.

They are now forcing me to accept 6.5 lakh and that too 5.75 from insurance and rest after selling the wreck.

They are saying they cannot consider this as total loss.

It is already 4 months passed after the accident.

Please advice how to proceed.

Thanks in advance

I am sorry about the accident.

This is Total Loss. There is some difference in the value of veh and the IDV. For an IDV of 7.03 you are getting 6.5 and it seems reasonable. Some years back the insurer used to take possession of the damaged vehicle(keeping it in the repairer workshop), then advertise in newspapers for the sale of wreck. It used to take long time and the repairer used to play a lot with the available wreck resulting in disputes. So they have avoided this and started disposing it off before settlement of the claim.

Squeeze a little more.

Dear sir,

I had bad accident.

(INDICA VISTA BS4) My new  CAR IS JUST 5 month & 20 Days OLD.

According to Guarage CAR IS TOTAL LOSS.

BODY SHELL IS FULLY DAMAGAED AND IT IS NOT POSSIBLE TO REPAIR IT.

But BAJAJ ALLIZE is forcing me to repair it and they wll not provied new body shell.

Car insurece IDV: 4,49.500/- ruppes.

According to surveyer reoprt : Glass/Rubber/plastic Coast: 62,000/-

           : metal parts coast(without bodyshell)+ Labour : 2,97,041/-

If i Want to Total loss the vehical then Insurence company will pay only: 3,50,000/-

but my insurence IDV is 4,49,500/- then why they are paying less to me.

According to Bajaj allize salvage value of car is 1,25,000/-

I feel Insurence company like BAJAJ ALLIZE is cheating me and all of us.

pls. help me and suggest how can i solve this problem and get proper value of

If your car is just 5 months old, you have every right to stand your ground and demand full IDV value. But this is subject to Bajaj Alliance agreeing that its a total loss.

As you have read from my post above, insurance companies normally always issue a work order as a negotiating tactic against consumers. This works mostly in cases when the car is 4-5 years old and after depreciation, the owner has to pay around 40% of insurance value.

In your case its new, which means all metal parts will be covered at least till 90% of the value, labour is completely paid for by insurance.Any plastic or fibre parts, you will have to bear 50% of the cost

In your case, I suggest accept whatever suggestion the insurance company gives you. If they are saying repair the vehicle - then you agree. Because anyway at least 80% of costs will have to be borne by the company, and you get a repaired vehicle back.

This is what I think will happen, as it happened this way with me. Once you agree to give it for repair, Bajaj alliance will call you and ask you for a total loss. It might take a month or so of negotiations, but they will call you.

At that time, they will try to drive the best bargain like 3.5 lacs , 4 lacs. Your car is new and you should just stand your ground and demand full IDV. I think you will end up getting at least 90% of IDV if it goes for Total Loss.

if it goes for repair - you get your car back.

All the best. please note that I am no expert in insurance matters, I am just giving you the above suggestions basis my experience with my honda city and bajaj alliance. I hope it helps you, but please don't hold it against me

i dragged bajaj to the insurance ombudsman. unfortunately the ombudsman's office has no ombudsman since Nov 2010. It is June, and the insurance ombudsman was suppose to resolve is 3 months as per its constitution. Such a mess. The finance ministry simply do not bother to appoint the ombudsman for last 6 months, may be because this ombudsman office is located in the north-east. Poor insurance customers like us in the region. 

mms, sorry to hear still your case is not resolved. It's high time now for you , suggest you to go for a RTI and check why ombudsman has not been appointed ? This will have an impact and can see things moving.