Car Was Wrecked Asian Alliance Is Undervaluving The Car.

[similarnames]

Rumesh88,

I don't know this is true or not. This photo appeared coincidentally on my FB homepage today. Totally agree to the fact that there is a quite a lot of bogus claims made by people to insurance companies. In Chan5's case, its sad that the company doesn't seem being fair and has somewhat breached the trust between itself and the customer !!(If my understanding is Correct !!).. May be you could enlighten us on this topic a little more.. respect !!!

[Schiffer]

Not going down without a fight,

I Respect you man. wish my dad had the guts and presistence you have

we had a mazda bg5 totalled and we got around 40% it was insured for. he just shut up and took the amount.

so once again Respect

[Rumesh88]

Rumesh88,

I don't know this is true or not. This photo appeared coincidentally on my FB homepage today. Totally agree to the fact that there is a quite a lot of bogus claims made by people to insurance companies. In Chan5's case, its sad that the company doesn't seem being fair and has somewhat breached the trust between itself and the customer !!(If my understanding is Correct !!).. May be you could enlighten us on this topic a little more.. respect !!!

Well, to begin with insurance policies are contracts based on utmost good faith (hence the use of Latin term uberrimae fidei to describe the basis of such contracts). Insured is supposed to provide all the known information on the asset to the insurer. For example, someone who has a terminal illness going for a life insurance should inform the insurer of his illness but only if he knew about it. In chan5's case there is a valuation from a reputed valuer which is a sufficient proof for the value of the vehicle. However, the insurer can still challenge this valuation because the insurer is only liable to restore the financial status of the insured to the point just before the accident. Hence the insurer can claim that the value of the car at the time of the accident was less what it was at the time of the first valuation. But if chan5 had stated in the valuation the trim levels or any other factors which would attract a premium price over parallel models then he would have been in a stronger position to prove his case.

It is because of these seemingly irregular practices in insurance here that I chose to go for third party insurance for the first two cars I bought in SL after my return from the Middle East. Accident claim procedure was very simple in Qatar where I had my fair share of accidents and insurance claims. All you need was to get a police report which was mandatory to repair your vehicle, take estimates from three places including one from the agent and produce them to the other party's insurer. You get your payment within a week and no questions asked because the whole procedure is based on a police report (which of course I could not even read). Traffic case would be taken care of by the police. Bogus claims were unheard of. This why I say that here in SL the genuine people pay a higher premium to cover the cost of other's bogus claims.

[chan5]

Thank you all for the inputs and replies. .

After quite a bit of struggle they agreed to pay 1.625.000 Rupees instead of their initial 1.45.

It was really helpful all your support.

today i received the following letter from the insurer,

Registered Post

21^st May 2014

***********

***** *****

****** ******

********

Dear Sir,

Total loss claim on vehicle No. 65-****

This has reference to your letter of 17^th May 2014 and subsequent discussion you had with us in respect to the above.

Having re-valued your vehicle we note that the current market value of your vehicle is Rs. 1,625,000.00.

Accordingly and as agreed by you the claim will be settled on Total loss basis for a sum of Rs. 1,625,000.00 less excess of Rs.1,500.00.

In order to finalize the claim please comply with the requirements requested by us in our letter of 16^th May 2014.

Thanking you,

Yours faithfully,

******* ********

Senior Technical Manager - Motor Claims

CC: Commercial Insurance Brokers (Pvt) Ltd

......................................

it has been a struggle for the total insured sum, and i could have been able to prove that they must pay my original insured value,

and i had strong reasoning to go beyond this.

but due to 2 reasons i decided to settle on.

1- beyond this it seems that i have to take matters to legal level, and we all know that it is a lengthy process.

2- my mechanic (professional valuer) insist that this is a reasonable offer and settle for it rather than dragging this longer.

Edited May 21, 2014 by chan5

[similarnames]

[chan5]

for the information of others i will list down the total process.

the car was seriously damage from behind.

due to sudden emergency braking at wet conditions,the car turned 180 degrees and hit a Telecom post.

underneath was collided with concrete ridge by the road and caused severe damage to suspension system which mal aligned the mounting points of all 4 shocks. all 4 shocks were broken from shafts.

indeed the driving compartment seems intact while the total body of the car deformed.

these are some pictures of the scene.

before taken out from the mud

rear end

the front

on next day

Had to pay for the telecom post before taking the car out from police.

and car was non steerable.

the garage people concluded following

the controversy starts from there.

Asian alliance take valuation of the current model from DE Silva motors and they have given it as 1.45.

and insurer was trying to offer me that value.

i strongly denied as i had a valuation from 7 months back which is way above the current.

and then mine has been insured by commercial bank.

so i was writing letters to Commercial bank and insurer.

my points were solid.

1- I had uncommon model and cannot be compared with common lemons.

2- I had a proper valuation.

3- Nobody can give a value for wrecked vehicle without knowing previous mechanical condition.

4- the 30% steep loss is impossible to given period of time.

5- there is no evidence of over valuing.

6- insurer has been agreed to 1.85 at the time of insurance.

7- there are no specimens for sale in any classifieds for the given offer price.

8 -If you are so confident about the given market value,Just replace me a similar spec car without a cash pay.

9- Insurer is Violating the principle of INDEMNITY.

10- Manufacturer classify Caldina-Van and Caldina Wagon as 2 different vehicles,not 2 trim levels of same vehicle.

went for discussion and with all points in documented.

they had no clear explanations other than de silva motors, market value document.

so they requested for another day.

meantime,the same day i called the De Silva guys and asked what is the rationale for issuing the 1.4 for my car which is rare specimen,

their reply was ,"that's the market value"

So i faxed the letter with all the facts and warned that will report this to relevant Authorities if you misuse your valuation licence like this.

evening that i received a call from De silva guys and said that they will not issue any other valuation for this wrecked car.

meanwhile the insurer has taken a Valuation from Mr Godfry Yapa and that was 1.625 .

they were offering me the same.

i resisted here saying that this is unethical and just a random guy cant valuate my car without seeing it in real and without knowing the condition prior to accident.

so negotiate them to send a Charted automobile engineer to see the car and note the technical differences and reconsider the offer for 1.85 insured value.and for which they requested 3 more days and seems its crossing the line of negotiations towards the legal aspects.and my mechanic insists that this is a good offer and settle for it.

so i finally decided to stop the battle after 20 days of Emails, Faxes and letters to here and there.

But still i Had enough evidences to beat them down in any court.

And at the latter stages,that insurer wanted to get rid of me rather than dragging this for long,

also they were being so professional at latter stages with very polite manners.

in real Gentleman style.

i had to read a Small book of Insurance principles to get ready to talk with them,

it's difficult to talk if you just don't know anything on their line(Thanks Rumesh88 for the hint),and so easy to tackle them if you know what they are talking about.

https://drive.google.com/file/d/0B5Oyn4KEhUaATFZlVGF5UXc0UEU/edit?usp=sharing

so thanks to everybody,

the simple lesson is.

it is not always impossible, we don't try enough

thanks for everybody for all the help given.

Edited May 21, 2014 by chan5

[Clark's son]

Insuarence aside from the looks of the rear of the vehicle you are lucky to be alive

[chan5]

Insuarence aside from the looks of the rear of the vehicle you are lucky to be alive

Actually bro, life gives lessons.

This time a Strong one without a single scratch,may be the luck to the last drop.

so Noted seriously.

I was trying to save the life of small kid who was about to cross the road on heavy rain,

machine was not young enough to handle the situation.and i was over confident or stupid ,maybe both.

[NRX]

Actually bro, life gives lessons.

This time a Strong one without a single scratch,may be the luck to the last drop.

so Noted seriously.

I was trying to save the life of small kid who was about to cross the road on heavy rain,

machine was not young enough to handle the situation.and i was over confident or stupid ,maybe both.

+ lack of ABS ?

Glad that you got sorted everything anyways..

[Rumesh88]

That's some accident chan5. Consider yourself really lucky. Just can't believe even with good tires the vehicle went out of control to this extent. As for the claim I think you have stretched the matter to its feasible limits. This is a good example for demonstrating the complications in automobile insurance. How about the third party damage (telecom post)? Did your insurance paid it or you had to pocket it out? Of course for the insurance to pay a third party claim there will be a traffic case against you.

[Supra_Natural]

Congratulations on sorting it out man... Great that you kept fighting till they backed down. Many insurance companies generally do try to screw the customer as a matter of policy and many people just bend over so it encourages them. Your experience is a lesson to us all. I'm going to pin this thread up because it is really valuable.

Edited May 22, 2014 by Supra_Natural

[VVTi]

It is stories like this that made me switch to 3rd party cover for both vehicles now. If I crash, I crash. No need to chase after in-bred retards to get myself compensated rightfully.

WTF is Godfrey Yapa, BTW????.

[VVTi]

7- there are no specimens for sale in any classifieds for the given offer price.

8 -If you are so confident about the given market value,Just replace me a similar spec car without a cash pay.

9- Insurer is Violating the principle of INDEMNITY.

10- Manufacturer classify Caldina-Van and Caldina Wagon as 2 different vehicles,not 2 trim levels of same vehicle.

Point 8, masterpiece.... LOL!!!

Edited May 22, 2014 by VVTi

[Crosswind]

It is stories like this that made me switch to 3rd party cover for both vehicles now. If I crash, I crash. No need to chase after in-bred retards to get myself compensated rightfully.

WTF is Godfrey Yapa, BTW????.

I believe he's talking about Godwin Yapa.

A valuer who always sticks to his principles, unlike certain popular valuers. I know this by experience.

[chan5]

Sorry. . .

Godwin Yapa he is....

they say that he's vettern in valuation business

[Davy]

WoW, that's a terrible blow! Glad that no one was hurt (including you) and thumbs up for all the effort and getting a reasonable claim. Good example for everyone on how to deal with insurance companies. Thanks for sharing.

[Hoonigan]

Congratulations Chan5! I think you called it off at the right point. Beyond that, you would have wasted more money, time and effort than what you would end up gaining. And your approach is a lesson to all, thanks for sharing!

And as others have said, you're lucky you didn't have to battle it out from a hospital bed!!!

Onto more serious matters, what's the next car going to be?

[GTAm]

Congrats on the good fight.

Actually I am wondering if there is a way of suing the valuer for giving a misleading/inaccurate valuation. I get the impression that the said valuer decides the values depending on which side of the bed they woke up from. Perhaps the insurance companies are in tow as well.

My experience was that he valued two similar cars of the same make and model just a year apart very differently. The first car lower powered model and older got 2.2m and the higher powered newer car (same make and model) was valued at 1.4m, just months apart. When I produced the previous valuation and pointed out that that was an older YoM and lower engine capacity and spec they looked like idiots and increased the value to 1.8m.

I recently stumbled upon a guy who bought a classic car for Rs. 1.6m. Had a small mishap and the insurance co, refused to pay full cost saying that the said valuer's valuation was Rs. 300k! Ridiculous noh?

[Crosswind]

Congrats on the good fight.

Actually I am wondering if there is a way of suing the valuer for giving a misleading/inaccurate valuation. I get the impression that the said valuer decides the values depending on which side of the bed they woke up from. Perhaps the insurance companies are in tow as well.

My experience was that he valued two similar cars of the same make and model just a year apart very differently. The first car lower powered model and older got 2.2m and the higher powered newer car (same make and model) was valued at 1.4m, just months apart. When I produced the previous valuation and pointed out that that was an older YoM and lower engine capacity and spec they looked like idiots and increased the value to 1.8m.

I recently stumbled upon a guy who bought a classic car for Rs. 1.6m. Had a small mishap and the insurance co, refused to pay full cost saying that the said valuer's valuation was Rs. 300k! Ridiculous noh?

Suing a valuer won't be easy because valuations are always subjective. But it will be really interesting if someone manages to get a court order to get the valuation history out of a valuer for an independent investigation. That will clearly show that there are discrepancies happening at even the most famous valuers.

Far easy to say than to do though!

[Charith H Jayasinghe]

Congratulations chan5 for winning of the battle and thanks for sharing info and wow Rumesh88 you are an allrounder.

[VVTi]

Congrats on the good fight.

Actually I am wondering if there is a way of suing the valuer for giving a misleading/inaccurate valuation. I get the impression that the said valuer decides the values depending on which side of the bed they woke up from. Perhaps the insurance companies are in tow as well.

My experience was that he valued two similar cars of the same make and model just a year apart very differently. The first car lower powered model and older got 2.2m and the higher powered newer car (same make and model) was valued at 1.4m, just months apart. When I produced the previous valuation and pointed out that that was an older YoM and lower engine capacity and spec they looked like idiots and increased the value to 1.8m.

I recently stumbled upon a guy who bought a classic car for Rs. 1.6m. Had a small mishap and the insurance co, refused to pay full cost saying that the said valuer's valuation was Rs. 300k! Ridiculous noh?

IMHO, in this thrice cursed land, the bigger the engine, lower the value...bloody thel hinganna mentality.

[Charith H Jayasinghe]

IMHO, in this thrice cursed land, the bigger the engine, lower the value...bloody thel hinganna mentality.

100% agree with you.

[VVTi]

But it has its advantages for some...

[xXx]

So how long do you guys think it'll take for this car to resurrect and be up for sale at your friendly neighborhood car sale LOL....

On a bit of a serious note, is the moral of the story here is to undervalue your car for insurance knowing that the insurer will never settle the full amount???

[MkX]

Congrats and happy that it end up in this way.

Well, I still believe we should keep the full insurance. But we shouldn't fall for this "no-claim bonus" crap. when ever there is small dent or minor damage we should claim the insurance and keep the car in eye catching shape at least. If your car is a daily driver, or had to park in roads, car parks, you will get few dents with in a one year span. So get your money back and keep the car shining.

It is stories like this that made me switch to 3rd party cover for both vehicles now. If I crash, I crash. No need to chase after in-bred retards to get myself compensated rightfully.

WTF is Godfrey Yapa, BTW????.

I generally keep 100K - 150K below the market value. Not that I'm trying to save money from it, but other than a totaled incident, we will get full claim for most small accidents, irrespective of the full value.

So how long do you guys think it'll take for this car to resurrect and be up for sale at your friendly neighborhood car sale LOL....

On a bit of a serious note, is the moral of the story here is to undervalue your car for insurance knowing that the insurer will never settle the full amount???