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  1. Tapas
  2. Finance, Insurance
  3. Wednesday, October 17 2018
Please clarify that, what will happen to the loan EMI in such a case where the vehicle is declared TOTAL LOSS due to accident and the owner is surviving.

I understand that the owner will get his IDV claim from insurance company, but what will happen to the remaining EMIs of the finance company ? Whether the owner has to continue to pay the EMIs as per schedule or that will be adjusted against the IDV through the insurance company?
Admin Accepted Answer

Its not that the Insurance company will make payment to owner
Rather the payment is done to the Financing Bank, been loan HP is mentioned

So - suppose the IDV is rs 3 Lakh and presuming that Outstanding Loan amount is Rs 2 Lakh
Then Insurance company will make complete IDV payment (after salvage deduction) to Bank. The Bank after deducting in loan amount and applicable charges for closure of loan will deduct it from the amount as received from Insurance company, will close the loan and make balance payment to the vehicle owner

Hope should help !!

  1. more than a month ago
  2. Finance, Insurance
  3. # 1
Jitendra Gupta Accepted Answer
My car total loss due to accident car Insurance Company not given claim but bank emi continue so waival of loan emi in case of total loss of car due to accident

  1. more than a month ago
  2. Finance, Insurance
  3. # 2
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