In the rains last week, my driver lost control and the car was badly damaged. Since the repair cost is more than the insured value of the car, the insurer is offering me the insured value and asking me to deposit the car with them. But I want to get the car repaired. How do I go about it?
Ramandeep Singh, Gurgaon
Normally, in the cases where the repair cost exceeds the insured value of the vehicle, the insurers settle the claim on a ‘Total Loss’ basis, whereby the payment made to the insured is equal to the insured value of the vehicle as mentioned in the policy schedule. In exchange the vehicle is to be deposited with the insurers so as to enable them to recover some cost in lieu of its salvage. In your case, even though you want to retain the car and get it repaired yourself, the basis of settlement would be same i.e. ‘Total Loss’. The insurer would ascertain the salvage value of the vehicle with the help of an authorised valuer and after reducing the salvage value from the insured value of the vehicle, the balance amount would be paid to you. The balance cost of repairs would be borne by yourself, as you would be considered as the self-insurer for the rest of it. Further, once the insurer has paid the entire amount to you, the existing policy would cease to operate in this case.
