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Car Insurance Claim Settlement: Accident Total Loss

Car Insurance Claim Settlement: Accident Total Loss

Car Insurance Claim Settlement Process. Know Insurance Company Terms with IRDA norms in Accidental Total Loss, CTL, Cash Loss and Stolen Theft Cases

 

Car Insurance Claim Settlement - Accident Cases

A Car is Considered Total Loss or CTL (Constructive Total Loss) If due to accident - cost of repairs exceed 75% of IDV (Insured Declared Value of the car)

  

Accident Cases (CTL Loss wherein repair cost is more than 75% of IDV of Vehicle)

Interpretation of IDV: IDV (Insured Declared Value) shall be treated as the ‘Market Value’ of the Car

» throughout the policy period

» without any further depreciation

 for the purpose of Total Loss / Constructive Total Loss (TL/CTL) claims

The repair cost of 75% of IDV as mentioned does not conclude Insurance company payable amount – but the total cost of repairs (irrespective of contribution of Insurance company and Owner)

So – If Insurance company is deducting any amount on further depreciation – then don’t accept it. You are entitled for a full amount claim settlement cheque equivalent to IDV of the Vehicle (less the Standard Deduction and any Voluntary Deduction if taken at the time of renewing the policy)

In case of CTL – Let the salvage part be dealt by Insurance company directly. You claim for amount equivalent to IDV and don’t deviate on it

 

Cash Loss Case (Settlement of Claims)

In Cash Loss - where Repair cost is less than 75% - but still on higher side then a settlement is also a possibility which can be done with Insurance company to a mutually agree-able amount

For Instance – if say a car having IDV of 4 Lakh has met an accident with cost of repairs to be say 2.5 Lakh and basis the policy coverage – Insurance company has liability of Rs 2 Lakh and your liability say is Rs 50000

Then you can even go in for settlement option with Insurance company – provided a scrap or salvage buyer is identified.

Presuming the scrap buyer is found and is ready to pay Rs 1 to 1.2 Lakh

Insurance company may negotiate to bring the final paid settlement amount reduced by 15% and can make one lump sump payment of say Rs 1.7 Lakh and may close in the policy.– it would be better off to make settlement with Insurance company for 1.7 Lakh and sell car to scrap dealer for say 1 to 1.2 Lakh

 

Aggregator OEM Approved Insurance 

» Maruti Insurance (having Maruti Insurance Policy) - (011/022/033/044) 33774477 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Insurance Companies Contact

Here are contact details of some Insurance Companies - wherein you can lodge in the claim and can email in details or inquire more

» Bajaj Allianz : 1800 209 5858 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» Tata AIG : 1800 266 7780 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» ICICI Lombard : 1800 2666 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» Royal Sundaram : 1860 425 0000 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» Bharti Axa : 1800 103 2292 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» HDFC Ergo : 1800 2700 700 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» Reliance General Insurance : 1800 3009 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» SBI General Insurance - 1800 22 1111 / 1800 102 1111 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» Oriental Insurance - 1800 118 485 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

» United India Insurance - 1800 425 33333 or Email on This email address is being protected from spambots. You need JavaScript enabled to view it.

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Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments

 

Comments 12

Guest - Shashank Sirsalkar on Saturday, 31 August 2019 17:51

My car decleared total loss. IDV is 4.8 lacs and estimate given by showroom is 5.6 lac. In this seniro how much amount insurance will give me? Also I have one insurance of HDFC which had credit shield protection. So can I got waive off from balence loan? Pl. Suggest.
Shashank

My car decleared total loss. IDV is 4.8 lacs and estimate given by showroom is 5.6 lac. In this seniro how much amount insurance will give me? Also I have one insurance of HDFC which had credit shield protection. So can I got waive off from balence loan? Pl. Suggest. Shashank
Guest - shegan on Tuesday, 26 March 2019 14:34

Dear Sir,

My car met with an accident. The IDV is 1,62,000/- and repair cost is 1,35,000/- as per surveyor. The insurance company is refusing to consider it as a total loss case. They are saying that their liability is 93,000/- out of the 1,35,000/- repair cost as my insurance is a comprehensive insurance and not zero dep.
They are refusing to consider it as total loss. I have escalated it to grievance officer, but still they are not accepting it as a total loss case. They are asking me to repair it.

What can I do in this situation? thanks in advance

Dear Sir, My car met with an accident. The IDV is 1,62,000/- and repair cost is 1,35,000/- as per surveyor. The insurance company is refusing to consider it as a total loss case. They are saying that their liability is 93,000/- out of the 1,35,000/- repair cost as my insurance is a comprehensive insurance and not zero dep. They are refusing to consider it as total loss. I have escalated it to grievance officer, but still they are not accepting it as a total loss case. They are asking me to repair it. What can I do in this situation? thanks in advance
Guest - PRAKASH SHARMA on Monday, 03 September 2018 19:30

Sir, My car met with an accident in May 2018. Claim lodged (Oriental Insurance. Zero debt, through Aggregator- Maruti) within a week and it was declared as a Total Loss. Survey over, investigator appointed and I have submitted all related documents. It's more than three months passed, I have not received any hopeful response from the Insurance Company. Met personally with Claims manager, mailed various times to customer services, senior managers, but reply is still awaited. PLEASE HELP WHAT SHOULD I DO without adversely affecting my claim amount and period.

Sir, My car met with an accident in May 2018. Claim lodged (Oriental Insurance. Zero debt, through Aggregator- Maruti) within a week and it was declared as a Total Loss. Survey over, investigator appointed and I have submitted all related documents. It's more than three months passed, I have not received any hopeful response from the Insurance Company. Met personally with Claims manager, mailed various times to customer services, senior managers, but reply is still awaited. PLEASE HELP WHAT SHOULD I DO without adversely affecting my claim amount and period.
Guest - Sulabh on Monday, 19 March 2018 13:51

My case falls under "Breach of trust" since my authorized driver ran away with the vehicle, but the issue is Police has registered the complaint as the case of theft (in spite of Breach of trust) CrPc 173. Now insurance company is asking me to update section 406 in the FIR and submit the doc again for processing claim.

However, court has already given the orders, and it is impossible to change the section on FIR at this stage, could you please guide me on what process shall I adopt?

My case falls under "Breach of trust" since my authorized driver ran away with the vehicle, but the issue is Police has registered the complaint as the case of theft (in spite of Breach of trust) CrPc 173. Now insurance company is asking me to update section 406 in the FIR and submit the doc again for processing claim. However, court has already given the orders, and it is impossible to change the section on FIR at this stage, could you please guide me on what process shall I adopt?
Guest - Arun Babu on Friday, 16 February 2018 03:53

Sir, I have a doubt. My 2013 model Alto 800 Lxi car met with an accident, and is towed to the authorised Maruti Service Centre. The insurance is Maruti Insurance (New India Insurance). The IDV of my car as per the present Insurance is 1,57,000 rupees. The estimated repair amount of my car as quoted by them is Rs. 1,21,522. The depreciation is 35%. What wo get aill be the possible outcome? Am I eligible to get a TOTAL LOSS? If so, will i receive the total IDV of Rs. 1,57,000? If in case, I am not receiving the TOTAL LOSS, what other option is profitable for me? I am actually planning to buy a new car, also a MARUTI SUZUKI... Please advice.

Sir, I have a doubt. My 2013 model Alto 800 Lxi car met with an accident, and is towed to the authorised Maruti Service Centre. The insurance is Maruti Insurance (New India Insurance). The IDV of my car as per the present Insurance is 1,57,000 rupees. The estimated repair amount of my car as quoted by them is Rs. 1,21,522. The depreciation is 35%. What wo get aill be the possible outcome? Am I eligible to get a TOTAL LOSS? If so, will i receive the total IDV of Rs. 1,57,000? If in case, I am not receiving the TOTAL LOSS, what other option is profitable for me? I am actually planning to buy a new car, also a MARUTI SUZUKI... Please advice.
Guest - Ravikant Junghare on Sunday, 28 January 2018 18:58

Hello. I met with an accident on 11th Jan my car was chevrolet aveo Oct 2010 model. My car insurance is from Bharti axa. Survey done and considered as total loss case. My car policy is comprehensive type.IDV is 200000 .Can anybody tell me how much amount I can get and how much time it can take for settlement.

Hello. I met with an accident on 11th Jan my car was chevrolet aveo Oct 2010 model. My car insurance is from Bharti axa. Survey done and considered as total loss case. My car policy is comprehensive type.IDV is 200000 .Can anybody tell me how much amount I can get and how much time it can take for settlement.
Guest - Subhasish Sen Gupta on Thursday, 09 January 2020 13:01

Did you get back the money sir? How much time it took to get the money.

Did you get back the money sir? How much time it took to get the money.
Guest - Uchit on Friday, 12 January 2018 19:06

It's been just 3 months from delivery and a two wheeler hit the car and car banged the electricity pole. Damage is greater than 80% of idv. How much time will it take if total loss formality and getting a new car where insurance is from Oriental and car is of tata make

It's been just 3 months from delivery and a two wheeler hit the car and car banged the electricity pole. Damage is greater than 80% of idv. How much time will it take if total loss formality and getting a new car where insurance is from Oriental and car is of tata make
Guest - Shrey on Monday, 06 August 2018 11:56

You won't get a new car, the insurance company will settle the claim and give the amount mentioned as IDV minus compulsory deduction (generally ₹1,000 or ₹2,000).As per the time duration for total loss cases,it takes about 3-5 months for settlement but since your insurance is from oriental you never know how much time they will take. My car's total loss claim from oriental insurance isn't settled even after 2 years of accident.

You won't get a new car, the insurance company will settle the claim and give the amount mentioned as IDV minus compulsory deduction (generally ₹1,000 or ₹2,000).As per the time duration for total loss cases,it takes about 3-5 months for settlement but since your insurance is from oriental you never know how much time they will take. My car's total loss claim from oriental insurance isn't settled even after 2 years of accident.
Guest - Kishore on Tuesday, 05 September 2017 11:52

Due to the recent flood, my Hyundai Verna (bought in 2016 April) drowned in water and towed after 4 days (from Basement 2 of the Apartment). When I spoke to the Workshop Manager, he informed that the car will be considered TOTAL LOSS, since repair cost may go beyond 10 Lakhs. ( I bought it from showroom at 10.8 Lakhs, one year before and ran only 8K KM).

However, I was informed that the Insurance company may pay me 5 Lakhs against the actual market value of 9 Lakhs, since I've reduced the IDV to 7.5 in order to minimize the yearly premium. Is there a help to get better price from TOTAL LOSS of IDV 7.5 L??? Can I get at least 7 L from the IDV?

Thanks

Due to the recent flood, my Hyundai Verna (bought in 2016 April) drowned in water and towed after 4 days (from Basement 2 of the Apartment). When I spoke to the Workshop Manager, he informed that the car will be considered TOTAL LOSS, since repair cost may go beyond 10 Lakhs. ( I bought it from showroom at 10.8 Lakhs, one year before and ran only 8K KM). However, I was informed that the Insurance company may pay me 5 Lakhs against the actual market value of 9 Lakhs, since I've reduced the IDV to 7.5 in order to minimize the yearly premium. Is there a help to get better price from TOTAL LOSS of IDV 7.5 L??? Can I get at least 7 L from the IDV? Thanks
Admin on Tuesday, 05 September 2017 21:34

Hello,

As its a case of Total Loss, on what grounds is Insurance company deducting in 2.5 Lakh from the Insured Declared Value
At max
> Complusory Deduction : Rs 1000
> Salvage : at 5% as General Norm

which means in no way should the claim be less than 7.1 Lakh
Suggest to speak and raise issue with Insurance company as complaint and ask them in writing on what grounds can they deduct
If you have taken car insurance through showroom and renewal done through showroom - also lodge complaint with Hyundai about malpractice as a preferred insurance company and seek support to take it up with Insurance company too.

Hello, As its a case of Total Loss, on what grounds is Insurance company deducting in 2.5 Lakh from the Insured Declared Value At max > Complusory Deduction : Rs 1000 > Salvage : at 5% as General Norm which means in no way should the claim be less than 7.1 Lakh Suggest to speak and raise issue with Insurance company as complaint and ask them in writing on what grounds can they deduct If you have taken car insurance through showroom and renewal done through showroom - also lodge complaint with Hyundai about malpractice as a preferred insurance company and seek support to take it up with Insurance company too.
Guest - Anup pareek on Friday, 17 March 2017 12:04

Sir, I buy insurance policey from oriental insurance for my four wheeler in a accident my car has been damage, my cars insurance valu was 300000, vehicle consider as total loss , noow company cutting my a amount and making value 217000 , wait I have to do

Sir, I buy insurance policey from oriental insurance for my four wheeler in a accident my car has been damage, my cars insurance valu was 300000, vehicle consider as total loss , noow company cutting my a amount and making value 217000 , wait I have to do
Guest
Saturday, 13 August 2022

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