How To Claim Insurance? My Toyota Corolla


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As some of you know, I recently bought a Pajero Sport. I since sold my old Corolla, to a buyer who is well known to me. The Insurance cover of the Corolla was due for renewal, hence I renewed for continuity of insurance cover during the discussion on the terms for sale of my Corolla specifically on 22nd August 2015.

Me and the buyer agreed upon the terms and we signed the transfer documents (form 28/29/30) on 10th September'15, and the buyer gave me a cheque dated 10th Sep'15 and took possession of the car on 11th Sep'15, a set of original documents is held with me.

In the mean time the buyer met with an accident on an outstation trip and damaged the car (front right panel damaged, so largely a painting and denting or panel replacement job). The buyer is concerned on the huge cost of repair which may come on him and wants to claim insurance.

Since I have parted with the car and signed the documents and delivered the car I would want not to have any claim in my name and sully my record and lose my no claim record.

I was under the impression that I am immune from any insurance claim and that the insurance company will automatically understand that the ownership had transferred. I just want to be sure before I advise the buyer to go ahead - he has been kind enough to wait for my reply on this.

Will be very grateful for your advise - is the insurance claim going to be under my name?
 

Akash1886

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Ok, buddy have you got the insurance from dealer or directly from the insurance brand? In case of transferring the ownership, it is advisable that the insurance personnel/brand should be informed about it. In order to avoid the claim in your name, you need to firstly inform the insurance agent about the transfer of ownership and in the existing policy the name of new owner will be added and your's removed. You might need to show the sales deed as well. Once the insurance is transferred then the new owner can proceed with the claim for damage.

Please post a pic of damage if possible so it would be easy to understand whether insurance is actually needed or not.

Regards

Akash
 
Thread Starter #3
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Hi Akash, the insurance is from a dealer. He has helped me for many years and i can usually get what i want over the phone, even if it means paying more than the best i would get online.

If in the existing policy the new owner's name is added, the insurance company will come to inspect. I am fine with that, except that the damage has already happened. The car must be insured at all times, and any car sold is sold with insurance. The car is transferred first through signing of transfer documents, then ratified by RTO then insurance change of name done. In this case the accident has happened immediately after the first step. So I will call my dealer anyway, but is not the insurance expected to protect the current owner financially at all times?
 
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Let us be clear here. In whose name the car was when it got with an accident? I assume it in your name.So the claim needs to be done in your name. But since the other person was driving, he cannot say he will not pay up.The best way is that you say,Since I dont want to lose on my NCB,I would like you to take charge of the expenses.This is true as you had already signed the sale agreement.A side panel repair doesn't cost that much.
 

Akash1886

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Buddy to cut the long story short, There are 2 options for you:

1) Get the insurance transferred in new owner's name and he can take claim.

2) You take claim and let go of NCB as fact being insurance is in your name till now. If you don't want to let go of NCB, either you or the new owner pay it from your pocket.

Regards

Akash
 
Thread Starter #6
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Akash, those are indeed the obvious options. But will the insurance company pay up in option 1, which is my preferred option. Anyway, let me find out, thanks for your reply.
 

Akash1886

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But will the insurance company pay up in option 1, which is my preferred option.
Of-course, there is no way the insurance company can reject claim on a valid insurance policy. You see, the tenure of the policy will not be affected by the owner's name change. Till the time insurance policy is valid, the claim will be processed to the policy holder.

Regards

Akash
 
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Of-course, there is no way the insurance company can reject claim on a valid insurance policy. You see, the tenure of the policy will not be affected by the owner's name change. Till the time insurance policy is valid, the claim will be processed to the policy holder.

Regards

Akash
Akash,there is a loop hole here.They can say that the RC and insurance needs to be in the new owner's name.So if they came to know that the vehicle is sold they can reject the claim.
 

Akash1886

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They can say that the RC and insurance needs to be in the new owner's name.
I agree, however, without the transfer of RC, the deal is never complete. The first thing done in transfer of ownership of vehicle is the name change in the RC. The problem in this case with the name in Insurance policy.

Regards

Akash
 
Thread Starter #11
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Friends, I need some advice. The car mentioned above was damaged, and the service guy at Toyota (will leave the service centre unnamed for now) inspected it, came up with a bill of Rs250k approx, and my liability was almost 140k. I said that the used car division of Toyota would give me a lower quote than even 140k, so it did not make sense for me to go ahead. I negotiated with them based on my standing as a loyal customer for 10 years (perhaps I should have been less loyal).

The service guys backtracked quickly, reworked their math, and stripped out all fanciful suggestions and pruned it to 142k, with my liability at 57k. But my suspicion lingered. They agreed to bring the car from the yard to the service centre for another inspection, and then categorically stated that the final bill for me would not exceed 65k, and in the very worst case 70k, and while saying this, confirmed that the suspension was not damaged, which meant that only minor repairs would crop up incrementally.

I authorised them to go ahead - they would not without my authority. 3 weeks later, when the final bill came it was 213k with my liability at 91k.

I have told them that i will not pay a penny over 70k. The question is - what negotiating room do I truly have? I feel badly let down, and trust has been violated for sure.

Would deeply appreciate any suggestions. Thanks for looking.
 

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