My car was stolen, on which I am still paying the EMIs. If it is not found, who will get the insurance settlement?
In your case the insurers will be issuing the cheque of the settlement amount in favour of the lenders only
My car was stolen, on which I am still paying the EMIs. If it is not found, who will get the insurance settlement?
Madhav Kini, Mangalore
It is a double whammy – your car is stolen, but you will need to continue the EMIs on it. As there was a loan on your car, the insurer would have issued the policy with ‘agreed bank clause’. The implication of this clause is that in the case of any claim under the policy, the claim would be payable to the lender. However, the interest of the lender in the claim amount is limited up to the outstanding balance of the loan amount. Therefore, in your case the insurers will be issuing the cheque of the settlement amount in favour of the lenders only. After receiving the settlement amount, the lender will deduct the outstanding amount of the loan and remit you the balance amount if any. It is early days, do not lose hope on recovering your stolen car.