Insurance Claim For A Condemned Vehicle With Open Papers

[maskventura]

Hi,

I bought a car with open papers and drove it for about an year without transferring the ownership of the vehicle since I planned to sell it.

Recently it met with an accident and the car got damaged pretty bad and I think the Insurance will go with Condemned option.

Insurance is under my name and I'm wondering whether I'll face any problem?

Please give your expert advice on this.

Regards,

[jayanathkarunarathna]

You should not face issue as you had the same papers when you insure your vehicle. IMO They insured your vehicle because they have no any legal matters. Don't raise about open papers unless they asked for it. when I claim my insurance didn't even ask about the ownership.

Edited November 27, 2015 by jayanathkarunarathna

[Rumesh88]

You should not face issue as you had the same papers when you insure your vehicle. IMO They insured your vehicle because they have no any legal matters. Don't raise about open papers unless they asked for it. when I claim my insurance didn't even ask about the ownership.

In fact it is in a grey area. Technically the car does not belong to you and you cannot insure an asset that is not yours. It is against the very basic principles of insurance. However now that it is insured and if the insurer has agreed to pay just keep quiet and get your claim. If it goes for a legal proceeding you will not get a cent.

Edit: Never do this kind of foolish things ever in your life again.

Edited November 27, 2015 by Rumesh88

[priyanka]

Simple.

Transfer it now at least.

You can do it with a past date, but will have to pay a panelty.

Most probably the insurance company will ask for the papers in your name

At least in our case they did ask for it ( SLR 3 years ago )

[maskventura]

Simple. Transfer it now at least. You can do it with a past date, but will have to pay a panelty. Most probably the insurance company will ask for the papers in your name At least in our case they did ask for it ( SLR 3 years ago )

Yeah. I did transferred it now. Even before transferring I got a Claim before too. It was minor and I got it without any issue. But this is a Major Damage and most probably it will be Condemned.

Your case was a Condemned one? What was the Company?

[priyanka]

Yeah. I did transferred it now. Even before transferring I got a Claim before too. It was minor and I got it without any issue. But this is a Major Damage and most probably it will be Condemned.

Your case was a Condemned one? What was the Company?

for a minor repair no issue

but for a total loss they will ask for the CR

mine was a total loss.

it was SL I*******

they have deduct only 4000 as the transfer fee, from the insured value

they have deduct only

[VVTi]

Insurance companies goes through docs with a fine tooth comb. there is no guarantee that they will pay you even after you registered the car as the day of registration and the day of the accident will raise questions, and if they dig they can easily say that the cover was given in good faith and you withheld crucial info. This is a write off, trust me, for write offs they go through EVERYTHING!!! If a comma is out of place they will find a reason not to pay.

Edited November 27, 2015 by VVTi

[chan5]

You will get the full payment with no issues.

They will send you and offer letter and ask you to transfer the ownership to them.

Or it's going to be a double transfer to your name and then the insurer.

You can't get a total loss claim without transfer It to them.

Do it yourself now.

[AbeysinghE]

If it's a double transfer or whatever, most probably they are going to raise the question as to why you haven't transferred it when you bought it and running with open papers..Seriously I don't think anybody should use a vehicle with open papers even though have plans to sell it off.

[Watchman]

Yeah. I did transferred it now. Even before transferring I got a Claim before too. It was minor and I got it without any issue. But this is a Major Damage and most probably it will be Condemned.

Your case was a Condemned one? What was the Company?

1. If it's condemned you'll need to transfer the car's ownership to the insurance company; shit's gonna hit the fan here as others pointed out.

2. If the previous owner didnt cancel his policy yet, and wants to make a quick buck he can easily claim the money for himself and there's nothing you can do to stop him.

[Seeker LK]

Hondama wade. People like you should go through this and realise by keeping vehicles on open papers you are ruining yours and others peace of mind. Good luck with insurance