How do I know if it is a total loss or partial loss?
If the cost of repair is more than 75% of IDV it’s a total loss, else its partial loss.
a. In case of total loss company will pay the IDV less the salvage value.
b. In case of partial loss, company will pay the cost of repair less depreciation.
How much should I demand (if negotiations take place)?
The negotiations depends on various factors –
1- Who is at fault
2- Evidence available about accident
3- Car condition after accident (repairable/non repairable)
4- Garage Estimate (more than or equal to IDV)
5- Surveyor’s report (observations made by the surveyor)
How much should I demand (if negotiations take place)? OR If it’s repairable, then how to deal with insurance company (If they insist on total loss)?
You should be very careful dealing with the insurance guys, as they try to get you in fault position for accident so that they can save some money. You need to explain that you were not at fault the other side did, you have to prove that when these insurance guy comes, and they would ask for evidence. So be ready to provide your story with evidence.
If you are not happy with the insurer, don’t accept anything or sign any paper till you know – what it is? and lodge written complaint. (Don’t do anything verbally)
Total Loss – who will transfer/surrender the car to Insurance Company?
Insured will need to sign the transfer forms/documents or surrender forms of the car to Insurance Company. Rest will be managed by the Insurance Company before settling the claim.
My car is on bank loan (HP) – who will get the claim amount and who will tell the bank about accident?
Insured needs to inform the bank about the accident / theft / total loss as soon as accident/theft/loss happen. As your RC is Hypotheticated by Bank the Insurance company will settle the claims directly with the bank, as per bank clause/rider mentioned in the policy. You will then have to settle the account (+/-) with the bank.
Who pays the rent to the workshop in case of ‘Total Loss’ (Insurer or Insured)?
The rent is to be borne by the Insured. Rent is levied only in case of Total Loss. The rent is normally charged (on per day basis) when the vehicle is stationed idly for more than a week (before the work commences). Besides, it also charges for the estimate provided.
How do I know – for which part, what is the depreciation amount?
You will need to pay for the following costs which insurance will not cover:
1. In case of replacement of parts, depreciation is to be borne by you. Depreciation of rubber/plastic parts, battery, tyre etc. is charged at the rate of 50%. Depreciation for Metal parts/ electrical parts depends upon the age of car as mentioned in your insurance policy.
2. Compulsory excess of Rs. 500/- or RS. 1000/- as mentioned in your policy
3. Any extra job done (i.e. not related to the accident) by the workshop on your instructions, e.g. maintenance-related servicing.
4. Cost of towing in excess of Rs. 1500 will be borne by you.
Reference – Carwale