Pre-delivery Inspection & Check List

You are obviously excited about the delivery of your new car, but WAIT! Many have paid a huge price for the resultant haste, and its best to take some necessary precautions before driving away in your new machine.

We enlists all that you should check for as a part of the pre-delivery inspection:

Before Registration:

We recommend visiting the dealerships stockyard and checking your car prior to registration. Once it is registered in your name, there is little you can do. Check the car manufacturing month/year, especially when buying in the first quarter of any year. Fiat India was notorious for selling cars that have been manufactured up to 18 months earlier. Ascertain that the year of manufacture is current. Best way is to ask the dealer for the "Form 22" certificate (issued by the manufacturer). You will find the engine / chassis numbers on this certificate, while the month / year of manufacture are on the "road-worthiness" certificate (part of Form 22).
If the odometer is disconnected, in all probability, the allocated car has been used as a test-drive vehicle. Also check for any repair jobs / body damage; damage to some cars is inevitable in transit and most repair work is glaringly obvious.

IMPORTANT : Check the tax calculations on the dealership invoice. Overcharging for RTO / octroi / lifetime taxes is a popular scam at many Indian dealerships. Pay only the actual charges due to the authorities and not a rupee more.

Preparations:
1. Confirm: the date of delivery with your dealership. It is best to go there only after the car has been prepared and is ready. If you have a preference for a particular day / time (for auspicious reasons), inform the sales person.
2. Daylight: We recommend accepting delivery in broad daylight, since the dark can conceal a lot. You may also not get good service in the evening since dealership personnel are in a hurry to wrap the day up.
3. Documentation: Ascertain that you carry any required documentation with you. This may include forms, receipts etc.
4. Payments: If any payment formalities are to be completed, carry along the relevant PDC’s / Cash / Credit Cards.
5. Third Person: It’s always a good idea to take a relative / friend along for suggestions, observations and comments.
6. Memories: Take a camera along.
7. Music: Carry a CD / cassette if your car is equipped with a stereo.
8. Gift: Take a token gift along for the sales guy.

At the Showroom:
1. Be Courteous: Don’t bully around. It’s a nice happy moment and the sales staff is as excited as you are. Treat them with respect, and you will get better service.
2. Get a Demo - Part of the salesperson's job is to acquaint you with your new car's features and how each one operates. Ask him to demonstrate the car fully, and top to bottom, in order to understand how everything works on the vehicle.
3. Visit the Service Department: We recommend meeting the service manager and getting familiar with the service center facilities.

Final Inspection:
1. Check the car again: A lot could have happened between the pre-registration inspection and today. It’s best to walk around the car and ascertain that the car is super clean! Look for any signs of repair work / damage such as paint difference, dents etc. Even the interiors should be squeaky clean.
2. Check that all lights and electric accessories are working fine.
3. Confirm that all the accessories you ordered are fitted on the car.
4. Check that the spare wheel is fresh. And that all related tools (spanner, jack etc.) are present. Are there wheel locks? If so, ensure that the lug key is there in the car.
5. Misc : Wipers, floor matting, first-aid kit & hazard sign.
6. What is the mileage on your car? It should not be more than a 100 km (or in the whereabouts) for most brands.
7. Ensure that there is enough fuel in the car. At least to get you to the nearest petrol pump.
8. Somehow, most new cars are delivered with over-inflated tyres by the showroom. Check the tyre pressure and make the necessary adjustments.

Documentation:
Read the paperwork! Don't take anybody's word for anything. Make sure all the blanks in the contract are filled in.
1. Invoice. (Check that the Chassis and Engine number of the car matches with the Invoice and / or Challan).
2. Sales certificate.
3. All payment receipts.
4. Registration book or temporary certificate (Some States). Is your name spelt correctly? Are the car chassis / engine number matching with the actual? Is the number plate made in accordance with the number on the registration book?
5. Insurance: Ensure that coverage is valid and active.
6. Original PUC certificate. This is valid for one year.
7. Owners Manual.
8. Duplicate Keys.
9. Original warranty with all relevant dealership stamps.
10. Extended Warranty (If opted for).
11. Warranty of third party items such as battery, tyres etc.
12. Roadside assistance Contact details.
13. Business cards of dealership and service personnel.

Say Thanks to everyone and leave!

Accident claim for your car?

Every car accident insurance claim starts with a car accident. If you are the owner of the car and want to claim for damages, you should report the accident to your insurance company at the first opportunity. This will officially set in motion the claim process.

Usually, an insurance company settles the claim based only on the adjuster/surveyor's report on the extent of the damage to your car. And if you are satisfied with the claim your insurance company has offered to you then the issue is settled. But what do you do if you think the claim amount offered by your insurance company is not right?

In most cases apart from the trauma of an accident the next biggest ordeal could be the long negotiating process a non-agreement on the claims amount could spark off with the insurance company!

So how do you negotiate a claim to get it fully or at least the maximum amount? What do the insurance companies usually do during a negotiation process? What are your rights and when and how do you exercise them?

The following is a comprehensive guide to give you an insight into the various possibilities involved in negotiating accident claims for cars.

Understanding the basics is important

Perhaps the first thing that you should do in case your car is damaged in an accident is report it to your insurance company within the time frame as mentioned in your car insurance agreement.

You could also do your best to get as many details of the accident as possible like taking pictures of your damaged vehicles and any injuries sustained. You could also get in touch with the witnesses to the accident who could be a big plus later on to help prove your insurance claim.

Fill up the claim form with all facts mentioning the claim amount you believe your claim is worth.

Support your claim with all related documents including your medical bills if any, the first information report (FIR), if any, in case of accident involving third party injury or damage and the original estimate of repairs obtained from the workshop. This will put you in an advantageous position in case there is an impasse on the claims amount settlement.

The estimation process: Know your rights

After you have submitted your claim and before a claims adjuster or a surveyor from the insurance company who deals exclusively with claims contacts you regarding your claim, the insurance company will look into your policy details to know the extent of its coverage, the deductibles if any and also the coverage limits that may affect your claim.

That is whether your car accident policy is the Motor Policy A - Act Only Risk which is also known as third party risk or the more sensible Motor Policy B which is otherwise known as comprehensive insurance policy. It is always a sensible option to go for a comprehensive insurance policy for your car.

Physical assessment

After this initial check on your car policy coverage and depending on the claim amount, the adjuster/surveyor will physically visit the site or visit the accident site, talk to witnesses or refer to the police complaint if any to decide on the claim amount.

Usually many insurance companies have their own in-house adjusters/surveyors to assess the damage and decide on the claim amount, usually for claims below Rs.20, 000. But in some cases the in-house adjuster/surveyor assesses damages worth more than Rs. 20, 000 which is illegal.

There are provisions in the Insurance Act regarding that has specific rules about who qualifies for carrying out an assessment or survey of the damaged car in case the claim amount is more than Rs 20, 000. According to the Insurance Act it is mandatory that only an independent surveyor can do the assessment for all claims above Rs 20, 000.

This way a fair assessment of the extent of the damage is ensured paving way for an amicable settlement between the insurer and the insured. The law also states that the adjuster/surveyor should submit the damage assessment report within 30 days of the surveying the damage.

When you should negotiate

If your claim is simple that is there is no ambiguity on whose at fault issue, or the damage was negligible, and required only a little or no medical treatment for the passengers, then the adjuster/surveyor may require you give an estimate for repairs, study it and if satisfactory then probably settle the claims fully.

But if your claim is complicated that is if the liability is uncertain, or if your car insurance does not have adequate coverage or simply you do not agree with your adjuster's/surveyor's settlement offer, then this is when you should begin negotiations.

Remember, it is always better to keep a written account of the conversations/discussions on the claims dealings with your insurance agent and with adjuster/surveyor and any other people involved in the claims process.

When to preempt the adjuster's/surveyor's settlement

Usually it is the insurance company that makes the first move to offer you a settlement on your claim which could be all, or part, or in worst cases even nothing none, will typically be on the low side.

After all, it is the job of the adjuster/surveyor to save the employer's money. At the same time, the adjuster/surveyor would like to close a case and has the rights to typically allow a settlement range during negotiation.

In case you are definite on the value of your claim, which is advisable to be done only after consulting a lawyer experienced in handling car accident claims cases, you could preempt your insurance company by writing a demand letter mentioning the claim amount you believe your claim is worth.

Usually, the adjuster/surveyor will return to you with a counter offer which will be predictably lower sparking off a series of negotiations. Luckily if you reach an agreement then it is ok but when he gets to the top of his range that he usually has there will be no further offers and there is an impasse.

Before moving on to find out the other options available to you as the insured, you should first find out if your claim that has been denied either in whole or in part, has any legitimate and reasonable reasons to it.

Try to find out if the denial has to do anything with the limits in your coverage. Usually, the adjuster/surveyor will send you a denial letter against your policy. Check this to see if the denial seems legitimate or not. If you still feel that your claim has been unfairly denied, read on to find out the other options before you.

However, there is a word of caution. Whatever the course of action you decide to take on reaching an impasse remember that it should be based only on facts and made at the right time. If you sit on your claim for too long, there is every possibility that you might lose the right to sue in court to get your recovery.

Other options before you even if you reach an impasse
The obvious and wise choice for you will be to seek the advice from a lawyer specialized in handling car accident claims. This will help you determine if the settlement amount you seek is reasonable or not based on the facts and the supporting documents that you intend to furnish.

On the other hand if you prefer to continue negotiations on your own without a lawyer, you could write to the insurance company explaining the situation and strengthening your claim amount with more additional documentation and/or information not previously provided.

You could also talk to the adjuster/surveyor directly or if required seek an appointment with his superior. Else, you have the option to request for an alternative dispute resolution like mediation or arbitration.

If none of this works out you may file a complaint with the concerned state or central authorities/ministries or move the court of law to sue your insurance company for Bad Faith. Of course this depends on the clause provided in your car insurance agreement.

Most insurance policies mentions about an "appraisal clause" on the preferred way to settle disputes between insurers and policyholders. Usually, the clause says that disputes must be arbitrated, where a neutral party could hear the case and decide. There is very little room for a provision that disputes can be settled through litigation or in a court of law.

Car Insurance Tips

When you own a car, it is legally necessary that you get it insured.

There are two kinds of Motor Vehicle Insurance:

"Motor Policy A" (Third Party Risk) the 'Act Only Policy' covers third party damages up to Rs 6000/- only. Risk from fire and theft requires an additional premium.

"Motor Policy B" (Comprehensive Insurance Policy) protects you from the following eventualities:

1. Damage due to man made or natural calamities: Natural calamities include fire, floods, hurricanes, landslides, cyclones or earthquakes. Man made calamities include, theft, riots, strikes, malicious acts of vandalism or damage occurring in transit via road, rail, waterways or air.

2. Personal accident cover: In the event of an accident, it is important that you have personal accident coverage. You may also opt for a personal accident cover for passengers traveling with you, just to be on the safe side.

3. Third party legal liability: This would cover you for legal liabilities that result in permanent injury/death or damage to property, in the event of a mishap.

The insurance policy is valid for a period of one year. If you do not make a claim during the policy period, you are eligible for a discount, which is adjusted against the renewal premium. In case your policy expires, you can still avail the no claim bonus if you renew the policy within 90 days of its expiry.

The following rates of discount apply:

* First year - 20%
* Second year - 35%
* Third year - 50%
* Fourth year onward - 65%

This insurance policy does not cover these circumstances:

* Damages arising out of mutiny, nuclear risk or war
* Depreciation and consequential loss thereof
* Mechanical/ electrical failures
* Wear and tear of car tires and tubes
* Vehicle being used other than the purpose for which it was purchased
* Damages occurring from driving without a valid license
* Damages occurring from intoxication by alcohol or drugs
* Everyday wear and tear


In case you have an accident, how do you claim your Insurance? You need the following documents to submit to the insurance company:

* Your Vehicle Insurance Policy
* Original + Copy of the Registration Book
* Original + Copy of Driving License
* FIR in case of an accident involving third party injury or damage
* Claims form + the estimated cost of repairs from your workshop

Once you submit these documents, the insurance company will inspect the damaged car and authenticate the estimated cost of repairs. Once the surveyor has completed the inspection, the car can be repaired.

Present the final bill for the repairs and a stamped receipt from the workshop to the Insurance Company for settlement of the claim. An insurance surveyor will once again certify the repaired car, after which, you can take delivery of it.

Insurance Policies

Whenever you buy a car, you need to insure it or get the insurance papers transferred into you name in case it is a second hand car.

There are various insurance players in the market who offer Motor Insurance Policies. Popular among them are the General Insurance Company (GIC) and its four subsidiaries:

New India Assurance Company
Oriental Insurance Company
National Insurance Company
United India Insurance Company

Besides, there are several private insurance players, who have tie-ups with car companies to offer you motor insurance.

So why do you need insurance or your car?

Legally, you need to take motor insurance as soon as you buy a car. Every year, you need to renew the insurance policy by paying the premium.

Basically, there are two types of motor insurance, Policy A or Policy B. While you can satisfy the legal needs by getting the former kind of insurance policy, it is always wiser to go for the latter, as it is much more comprehensive. Policy B is also known as comprehensive insurance policy.

Differences between motor insurance policies

Motor Policy A: This insurance policy covers personal injury and property damage caused by your car. The parties covered under this include:
Pedestrians, occupants of other vehicles etc except those within your vehicle.
Driver of the other vehicle .
The passengers with whom your vehicle is for hire. Here, the owner of the vehicle gets an insurance cover on third party property damage only in case of an accident. In other words, if you are in an accident, the affected party can claim damages from you. The premiums generally are dependent on the cubic capacity of the car.
This cover does not go to fire and theft accidents, for which you need to pay additional premiums. Motor Policy B: The premiums of this comprehensive insurance? are much higher than those paid for regular insurance cover. This type of policy covers both third party insurance and own damage liability. Covered under this policy are:
Loss or damage to the vehicle caused by environment as well as other reasons. That is, accident, fire, explosion, lightning, theft and other malicious acts are covered under this policy.
Damage to the vehicle while it is under transit.
Risks due to natural/man-made calamities like floods, earthquake, riots, strikes and terrorism.
Damage to accessories like car stereo, car AC and other items that are not part of the original equipment.

Important clauses of auto insurance policies:

The vehicle insurance cover is not applicable if there is consequential loss, depreciation, wear and tear or mechanical and electrical breakdown. It is also not applicable in the following cases:
Drunken driving

Driver does not hold a driving licence

More people in the vehicle than the capacity permitted by the RTO

Damage incurred in a war zone.

Insurance Policies

Whenever you buy a car, you need to insure it or get the insurance papers transferred into you name in case it is a second hand car. There are various insurance players in the market who offer Motor Insurance Policies.
Popular among them are the General Insurance Company (GIC) and its four subsidiaries:
New India Assurance Company
Oriental Insurance Company
National Insurance Company
United India Insurance Company
Besides, there are several private insurance players, who have tie-ups with car companies to offer you motor insurance. So why do you need insurance or your car? Legally, you need to take motor insurance as soon as you buy a car. Every year, you need to renew the insurance policy by paying the premium. Basically, there are two types of motor insurance, Policy A or Policy B. While you can satisfy the legal needs by getting the former kind of insurance policy, it is always wiser to go for the latter, as it is much more comprehensive. Policy B is also known as comprehensive insurance policy.

Insuring your new car

Insurance amount: The amount of insurance is equal to the market value of the vehicle and not the original purchase price or book value of the vehicle.
Renewal: The insurance policy needs to be renewed before expiry of the policy period. Any delay in insurance renewal can deprive you of the insurance benefits and also attract a penalty while renewing. Remember, it is against the law to drive an uninsured car. Moreover, if the insurance policy isn’t renewed within the period of validity, the car will have to be brought to the insurance company office for inspection.
No-claim bonus: No-claim bonus (NCB) clause is basically applicable to holders of comprehensive insurance policy. The clause refers to the discount that a policy holder can receive on the amount of premium payable, if he/she has not lodged any claim during the year. The policy holder can claim a 20%, 35%, 50% and 65% discount in the premium in the first, second, third and fourth year of holding the policy. NCB cannot be claimed in the 5th year premium. The discount is based upon the claim that he has lodged with the company. Besides this, NCB is important when you are buying another new car because you can transfer this record (clean claim period) to your new vehicle. Let us work out some numbers on this. Say you have to pay Rs. 5000 as premium of your car. However, as you have a clean record, you would have to pay just Rs 1750, when you enjoy NCB @ 65%. Now, when you buy a new car which has a value higher than the current one, premium is undoubtedly higher. But you get to transfer the bonus percentage onto your new car. So, if on your new car, the premium that you have to pay is Rs 10,000, because of the NCB, you need to pay only Rs. 3500; that is, you save Rs 6500. But remember that the new car purchase has to be made within three years of sale of the old car.

Registering a new car at the RTO

Firstly, when you buy a new car, you have to register it with the Regional Transport Office (RTO). Remember that despite taking a loan from a bank, you are entirely responsible for the registration of the car.
Also, every car has its own Certificate of Registration (RC) book that tracks the history of the car. Moreover, as a car buyer, you need to ensure that all the legal forms should be filled in completely and submitted to the right authorities. Say, you live in Mumbai and bought a new car. You need to submit the relevant documents to the RTO under whose jurisdiction your address falls. If the new car is from another state, you will need to obtain a certificate of temporary registration from the RTO. In most places, this certificate is valid only for a very short period, after which a permanent registration number has to be obtained.
While driving the new car to the RTO for registration, take the following with you:
1. Application for new car registration or Form 20
2. Photocopy of the invoice, insurance policy, ration card or telephone bill as proof of address
3. Original Sale Certificate or Form No 23, Sales Tax Receipt, Octroi Receipt
4. Pollution Under Control Certificate from the manufacturer or Form No 22
5. Letter from the financier, in case you have taken a loan to purchase a car, addressed to the RTO asking them to endorse their lien on your car registration certificate book or Form No 34
6. Your PAN number.
7. Imprint of your car’s chassis number.