Car Was Wrecked Asian Alliance Is Undervaluving The Car.

[chan5]

Guys,advice needed.

The car involved is 1997 Toyota Caldina Turbodiesel auto with indipendet suspension.65 series.

two weeks back,car met with an accident.

rear end and a side collided with telephone post and the main frame was deformed.i was not injured luckily.

My mechanic recommended the car is beyond the repair and insurance company also decided the same.

We had a valuation at de silva motors and Value was given as 1.85 million.

i had a 500000 loan for the car from comercial bank and they carried out the insurance things behalf of me.

on 2013 august,Bank insured the car at asian insurance for 1.85 million.

i didnt get the fine print. and bank sent me the card through post.

insurance firm didnt even had a photo or inspection prior to policy.all based on valuation report.

now after 7 months of policy,car is write off.

now what they have done is,they have taken a market value from some other firm and offering me 1.45 million.

which is nearly 30% loss of original value and genuinly i cant buy a replacement by that price. The car is passenger station wagon with all bells and whistles of carina 212.genuinly the said trim level car is moving around 17.5. may be due to rarity.

they have taken the average market value of rear leaf spring basic model and forcing me to agree for that offer.

what should i do now.?

Bank is also showing not much responsibility in this case.

Is there anything could be done at this level?.

i remember we had old van which damaged by thsunami and SLIC paid the full insured amount of 16 or so as i remember.

what is the retionale behind this offer?.

What should i do for this now?

can a 1.85 falls into 1.45 by 7 months?.

thanks... . .

Edited May 17, 2014 by chan5

[GayanR]

Hi chan i have no idea about insurance stuff but it seems the current market value goes around 14-15 for a caldina 1997 diesel and 16 for a 1999 diesel..couldn't find any vehicle that goes around 1.8 range,Have no idea about the trim level commented just by observation...I think it's a fair offer...

[chan5]

You are correct machan.

the usual caldina is going around that margine.

let me explain it with a common example.

corolla wagon CE 108 goes around 13- 15 with rear leaf springs.

but their is a rare trim level called G-Touring and L-Touring.which are with indipendant suspension and headrest seats at back and all bells and whistles of full optioned corolla 110.

which are very rere to find and often goes beyond 17-18.

my case also similar to that machan.

it must have been the fair offer if it is basic trim level.

my one was a totaly similar to carina 212 mechanicals and interior and comfort.

sorry bro,there are non of them in classifieds currently to show you the difference.

all are rear leaf spring models.

just to know machan?.

does insurance companies exclude trim level differences when paying a total loss.?

[GayanR]

You are correct machan.

the usual caldina is going around that margine.

let me explain it with a common example.

corolla wagon CE 108 goes around 13- 15 with rear leaf springs.

but their is a rare trim level called G-Touring and L-Touring.which are with indipendant suspension and headrest seats at back and all bells and whistles of full optioned corolla 110.

which are very rere to find and often goes beyond 17-18.

my case also similar to that machan.

it must have been the fair offer if it is basic trim level.

my one was a totaly similar to carina 212 mechanicals and interior and comfort.

sorry bro,there are non of them in classifieds currently to show you the difference.

all are rear leaf spring models.

just to know machan?.

does insurance companies exclude trim level differences when paying a total loss.?

Sorry mchn i have no experience on claiming a loss..other members will help you...Just to tell you once i had a fb14 super saloon for sale that time current market value was around 15.90,my one was in superb spotless interior and exterior condition could easily sell it was the second owner...once i allowed this buyers insurance guys to come and they evaluated it for 13.90,I don't think these guys have any idea about the differences in trim levels,mileage,any other add ons or condition compare to other cars,they just go for the market value of a 'fb14'....

[VVTi]

A write off always pays much less than what the car is valued for. Normally this is around 30-40% less. You can sweet talk for a more but they will not give the full amount,.

[Magnum]

A write off always pays much less than what the car is valued for. Normally this is around 30-40% less. You can sweet talk for a more but they will not give the full amount,.

I thought its only 10%

[Schiffer]

Seems like u had a Caldina CZ turbo

those do fetch around 1.7-1.8M

but afaik u will never get the full amount

[Crosswind]

U can talk to them, talk to the higher management, send letters etc etc. Keep trying till they agree for something more.

U can even consider taking them to courts... at a risk.

[VVTi]

I thought its only 10%

In your wildest dreams....

[VVTi]

U can talk to them, talk to the higher management, send letters etc etc. Keep trying till they agree for something more. U can even consider taking them to courts... at a risk.

Taking them to courts will not work.... its not as if they are refusing to pay. Just that they are paying a rate they feel is correct.

[peugeot407]

you can appeal to Insurance ombudsman.

http://www.insuranceombudsman.lk/

[Rumesh88]

Taking them to courts will not work.... its not as if they are refusing to pay. Just that they are paying a rate they feel is correct.

It may cost a lot and may not make sense in taking them to courts. But there is a prima facie case here against the insurer for the insured has documentary evidence in the form of a valuation which was accepted by a bank. There is no way the insurer can establish that the car was intentionally over valued at that point. On the other hand they will find it very hard to prove that the value of a car with the same specifications as the one got damaged is only 1.45 million. However, the best approach is the one above given by Crosswind.

[chan5]

<blockquote class='ipsBlockquote'data-author="VVTi" data-cid="261565" data-time="1400343689"><p>

In your wildest dreams.... </p></blockquote>

Seems it depends machan.

Once SLIC paid back our valuated 1.6 total for total loss of van.without cutting a penny at Thsunami time.

And one of my friends family had a claim of 1.15 for van, They have insured as me by a valuation.insured sum was 1.2 and it was 17 year old bongo.

My mechanic has documents payed by j********i of 400000 for D*MO batta valuated at 825000 by the time of insurance.

have documents with one of SLIC agent about payment of 13.5 million for 13.6 insured SUV.may be new one.he showed the documents in promotion at my workplace.

so i learn theat there should be rationale for this payment methods.

does anybody know how these calculations are made?

or what points shoud i bring up in case of a negotiation.

Edited May 18, 2014 by chan5

[Hoonigan]

Another point is that they accepted the car's value as 1.85 when you took out the policy and paid a premium for that value. It's not a brand new car to have it depreciated by 30% in 7 months. While you may not get the full value, you should be able to get a bit more if you are persistent.

[Rumesh88]

does anybody know how these calculations are made?

or what points shoud i bring up in case of a negotiation.

First get yourself familiar with the insurance jargon (perils, deductible, indemnity,... google for insurance principles for something like http://www.insurance-schools.com/samplepages/adjusterchap.pdf ) before you begin negotiations with them . A basic principle in Insurance is the Principle of Indemnity. Now you are going to argue that you are not adequately indemnified. So it boils down to the current value of your asset. Keep a copy of the valuation and manuals/brochures of the car to prove your trim levels. Ask them to produce hard evidence (not just empty talk) against those of yours to prove that the value of the vehicle is what they say it is. You may not get 1.85 but with proper reasoning you should be able to get a value sufficient to replace your vehicle.

One more thing before or at the negotiating table you hand over a letter to them explaining and justifying your position. In case if they insist on a value which is unacceptable to, tell them to write back with reasoning behind their valuation for you intend to take them for arbitration. If their arguments are baseless then they would think twice before replying you.

Edited May 18, 2014 by Rumesh88

[chan5]

link is not working RUMESH88

[Rumesh88]

link is not working RUMESH88

Just type the link address.

[chan5]

Thank you everyone for the inputs.

Today i went to meet the bank and insurance people too.

Bank was promising to stand strong on my side.

Feel that they are taking genuine effort.

I have given letters to insurance company and the bank with clear explanation of the situation.

Asian Alliance now saying that the car was over insured at the moment of policy.

And they had a document from De Silva mortors about Estimate of 1.45 for my vehicle.taken after the accident.

they say that its the amount that they are going to pay.

and planning to get a second opinion.

i clearly proved with documents that my vehicle is not the same commen caldina. Actually manufacturer has classifed it as total different vehicle as Caldina station wagon and other variety is classified as caldina VAN in toyota global website.They admitted that.

Now they requested for one more day to decide.

and i clearly asked for written reasons amd solid evidances for their fabricated Valuation.

specifically asked for replacement not money,if theu believe that vehicle could be brought for 1.45.

and as per fundamental insurance policies,Insuarer is legaly bound to uplift tje financial status of insured to the point where just before the accident.They admitted that as well..

still do not know what is the end result.

Buy will keep you guys posted.

About the way they handle matters,felt that they are not so profeaaional in customer care.Had to make a scene to even speak to a responsible person. .

[Magnum]

Thank you everyone for the inputs.

Today i went to meet the bank and insurance people too.

Bank was promising to stand strong on my side.

Feel that they are taking genuine effort.

I have given letters to insurance company and the bank with clear explanation of the situation.

Asian Alliance now saying that the car was over insured at the moment of policy.

And they had a document from De Silva mortors about Estimate of 1.45 for my vehicle.taken after the accident.

they say that its the amount that they are going to pay.

and planning to get a second opinion.

i clearly proved with documents that my vehicle is not the same commen caldina. Actually manufacturer has classifed it as total different vehicle as Caldina station wagon and other variety is classified as caldina VAN in toyota global website.They admitted that.

Now they requested for one more day to decide.

and i clearly asked for written reasons amd solid evidances for their fabricated Valuation.

specifically asked for replacement not money,if theu believe that vehicle could be brought for 1.45.

and as per fundamental insurance policies,Insuarer is legaly bound to uplift tje financial status of insured to the point where just before the accident.They admitted that as well..

still do not know what is the end result.

Buy will keep you guys posted.

About the way they handle matters,felt that they are not so profeaaional in customer care.Had to make a scene to even speak to a responsible person. .

Smart move

[Crosswind]

Good luck buddy. De SIlva is well known for giving different valuations for the same vehicle at the same point of time. You can always demand the valuation of another valuer. You have the option of going to the insurance ombudsman as well.

[Rumesh88]

This is a good lesson to everyone. If, for some reason like trim levels, rarity, antique value, fitted with a new engine etc, your car is valued over and above the other parallel models you can ask the valuer to mention these factors in the valuation certificate. Then you are in a much stronger position to argue your case. Good luck chan5.

[Davy]

Got to admire the fact that you are doing everything within your power to get this turned around. Thanks for sharing this and as Rumesh88 said, this is very valuable info.

Hope things end up in favour of you. Good luck!

[MkX]

Wish you good luck and I hope you will end up in better copensation. Your best option is to settle down for another 200K, may be?

Edit : Also check the possibility of bringing Ensurance ombudsman as Rumesh88 said and Comsumer Affairs Authority.

Edited May 20, 2014 by MkX

[similarnames]

Chan5,

Good luck with you requests to the insurer to reconsider their offer as they had willfully insured your car for its real value .

I also hope that the things would turn out in favor of you.

This reminds me of a similar incident happened to me 10 years ago with j********i, which made me loose faith in that

company !!!!..

In the meantime in another place...

[Rumesh88]

Chan5,

Good luck with you requests to the insurer to reconsider their offer as they had willfully insured your car for its real value .

I also hope that the things would turn out in favor of you.

This reminds me of a similar incident happened to me 10 years ago with j********i, which made me loose faith in that

company !!!!..

In the meantime in another place...

Is this for real?

In any case, in a country where the law can be bought and bent to your whims and fancies, IMO insurance is not a viable business. It is common knowledge that the insurance companies have to deal with a bulk of bogus claims on vehicles accidents, factories and warehouses damaged by fire etc., on a daily basis. So if you take the view of insurers it is not an easy task to sort out the genuine claims from the bulk of bogus ones and the law and order situation is not helping them either. The end result is that the genuine customers are at the receiving end of all this.

BTW I do not think Consumers Affairs Authority can intervene here because the matter goes beyond a simple contract of sales. The insurance policy is a separate contract between the two parties and the dispute here is that the insured has misinformed the insurer (that is what the insurer claims) on the value of the asset.

Edited May 20, 2014 by Rumesh88