"The initial estimate has been around 3 lakh. We have been given the option of 'total loss' now, but we are hoping something can be done to get back the car," he said, referring to the cut-off in the insurance policy that qualifies for the largest claim.
"For cars over five years of age, some policies will have a clause that says the final settlement is arrived at through mutual consent between the insured and the insurer. This is where the market value of an old car is taken into account, leading to a bargain," said a top official at United India Insurance who wanted to remain unnamed.
The four public sector insurers - United India Insurance, New India Assurance, National Insurance and Oriental Insurance - have teamed up for the first time to form a "matrix" for quick disposal of claims. This is how it works: Customers, after submitting the claim document, will be offered a fixed amount based on the age of their car, manufacturer, model and extent of water-logging, chassis level to seat to steering wheel to fully submerged. If the customer opts out of the matrix method, the insurance process takes place as usual. First the dealer makes a quotation and starts repairs. The insurer says how much can be covered and the customer pays the rest. The matrix method facilitates speedy settlement but the customer is left to deal with any further repairs or negotiate with the dealer on delivery time on his/her own. Private insurers such as Bajaj Allianz, Cholamandalam MS and Bharati Axa are reportedly working with larger teams to handle claims. They declined to comment when asked about the reason for having to negotiate with those insured.
Source: www.economictimes.indiatimes.com
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