Total Loss Coverage for 6 month old vehicle

[BingLim]

Hi ma'am BingLim, ask ko lang kung saan place ka at ano yung auto mo na pumayag ang STANDARD INSURANCE na matotal loss kasi lagi lang nila sinasabi na FOR REPAIR LANG DAW TALAGA sila. Sa Pasig kami at sa nasa Toyota Ortigas yung auto ko. Para naman masabi ko sa kanila na bakit yung iba na nabaha ng Ondoy pumayag sila na maTOTAL Loss e sa akin bat ayaw nila pumayag. If kung ok lang sayo?

Hi! sorry for this late reply. Anyway, my car is a Mazda 3. We initially brought it to mazda greenhills days after ondoy but it was not accepted due to the bulk of repairs they had then so we decided to bring it to Pampanga. Mazda Pampanga declared it total loss. Actually the amount they offered us is not full 100% of the insured value but we accepted it to lessen the hassle. Honestly, I still miss my car and wasn't really keen on having it declared total loss (compared to the Hyundai Tucson which i never want to see again after the stress given by the Bonifacios of Hyundai Pasig and Mapfre!). Anyway, the estimated repair would be tantamount or even more than the insured value cost that's why they decided to declare it total loss. Actually I think we were just lucky because there was point of precedence. Prior to our car being checked, Standard had an experience with another Mazda 3 whom they repaired at 400k ++ and the car kept on coming back for additional repairs, which apparently reached the insured value. So i think that was their basis to declare ours as total loss. Maybe the cost of repairing your vehicle is not that big yet or 70% of the insured value. But may i know if we are talking about a newly bought Innova here coz then that would definitely make a big difference, like how i've been fighting for our 6month old tucson that was submerged in the flood.

good luck!!!

[Reinier.Domingo]

[SIZE=2]Section III – Loss or Damage of BPI/MS Policy [/SIZE]
[SIZE=2]> [/SIZE]
[SIZE=2]> 2. At its own option, the Company may pay in cash the amount of the loss or damage, OR MAY REPAIR, REINSTATE OR REPLACE the Scheduled vehicle or any part thereof or its accessories or spare parts. The Liability of the Company shall not exceed the value of parts lost or damaged and the reasonable cost of fitting such parts or the value of the scheduled vehicle at the time of the loss or damage, whichever is the less. The Insured’s estimate of value stated in the Schedule shall be the maximum amount payable by the Company in respect of any claim for loss or damage[/SIZE][SIZE=2].[/SIZE]



- My car was declared TOTAL LOSS by BPI/MS. I understand that paying us a huge amount of money to remove the hassle up ahead is a teasing offer. My question is, why can't BPI/MS REINSTATE/REPLACE a vehicle as stated in the POLICY agreement? San na napunta ung bayad sa Insurance? Mawawalan ka na nga ng sasakyan tapos kung kukuha ka ng bagong auto mauulit ulit ang cycle mo sa mortgage? hindi ba tayo talo sa ginagawa nila?



I hope someone can reply to my query. Coz' I'm planning to take my concern up a notch by filing a lawsuit. I need some professional advise. Thanks.
[SIZE=2][/SIZE]

[TechieN00b]

[SIZE=2]Section III – Loss or Damage of BPI/MS Policy [/SIZE]
[SIZE=2]> [/SIZE]
[SIZE=2]> 2. At its own option, the Company may pay in cash the amount of the loss or damage, OR MAY REPAIR, REINSTATE OR REPLACE the Scheduled vehicle or any part thereof or its accessories or spare parts. The Liability of the Company shall not exceed the value of parts lost or damaged and the reasonable cost of fitting such parts or the value of the scheduled vehicle at the time of the loss or damage, whichever is the less. The Insured’s estimate of value stated in the Schedule shall be the maximum amount payable by the Company in respect of any claim for loss or damage[/SIZE][SIZE=2].[/SIZE]



- My car was declared TOTAL LOSS by BPI/MS. I understand that paying us a huge amount of money to remove the hassle up ahead is a teasing offer. My question is, why can't BPI/MS REINSTATE/REPLACE a vehicle as stated in the POLICY agreement? San na napunta ung bayad sa Insurance? Mawawalan ka na nga ng sasakyan tapos kung kukuha ka ng bagong auto mauulit ulit ang cycle mo sa mortgage? hindi ba tayo talo sa ginagawa nila?



I hope someone can reply to my query. Coz' I'm planning to take my concern up a notch by filing a lawsuit. I need some professional advise. Thanks.

Hi Reinier:

I would not advise a lawsuit. Its up to you though but I think apart from the headaches, it would be a loss-loss situation for both of you. Of course, whether or not to continue with a lawsuit depends on what 'exactly' the situation is. I just got the 'feeling' that you the only reason why you want to file a lawsuit is because you are 'debating' your insurance company's option to either: (1) pay the amount of loss or damage; or, (2) reinstate/replace the 6 mo. old vehicle.

Based from that fact alone, standard insurance policies does state: "in the company's option, either (1) or (2). Hence, there is nothing illegal with the company exercising its options.

I'm sorry if I will be the one to break this to you but you will end up being paid a smaller cash than that would be required to 'pre-terminate' your mortgage (if the car is still mortgaged).

Alternative: Try to negotiate a trade-in of the "damaged/totalled)" car --> at least may car ka, plus bayad ka ng smaller amount and mortgage can still be continued. Other than that, I don't have any other creative ideas right now.

Here are also some other things (related to your question, but doesn;t answer them) you may want to know:

1. To replace your car would mean that the company would find an exact model, within the same price range (including depreciations) that is also within the same '6-month' old range. It would be difficult to find a 6-month old car replacement. To replace it with brand new would also not be 'fair' from the insurance company's point of view (sa view nila ha, siyempre, ok sa atin yun, palit bago e).

2. It would take longer for them to replace the unit if you insist on replacement. The reason is number 1 above (they will have to find a reasonably prices 6-month old exact ar make and model as the one 'lost').

3. Also, please note that your car's total insured value (brand new ito di ba) = the posted sales price, NOT the entire net present value of the mortgage (5 years ba ito?) Mas malaki ang NPV (Net Present Value) ng total Mortgage cash out mo across X years, than the cash price.

4. Based on number 4, you will end up recieving cash, pero still in debt. If you will pay your remaining balance, the 'rule of 78' in financing applies. THUS, LUGI KA, because under the rule of 78, you are technically being penalized for cutting the mortgage early (the first 24 months has larger interest rate than the months after the 24th). you can use this to determine the exact amount that needs to be paid when pre-terminating your mortgage (using rule of 78, which unluckily for consumers, is being applied to ALL car loans): http://www.hughchou.org/calc/rule78.cgi



EDIT: BTW, there are cases, a 6-month old 'total loss' car was replaced, pero sa isang company fleet iyon. May officemate just informed me that it happened to one of his former colleagues in a previous company. Kumpanya ata ang nakipag-haggle sa insurance company. I don't know what insurance company that was.

[mark_t]

[SIZE=2]Section III – Loss or Damage of BPI/MS Policy [/SIZE]
[SIZE=2]> [/SIZE]
[SIZE=2]> 2. At its own option, the Company may pay in cash the amount of the loss or damage, OR MAY REPAIR, REINSTATE OR REPLACE the Scheduled vehicle or any part thereof or its accessories or spare parts. The Liability of the Company shall not exceed the value of parts lost or damaged and the reasonable cost of fitting such parts or the value of the scheduled vehicle at the time of the loss or damage, whichever is the less. The Insured’s estimate of value stated in the Schedule shall be the maximum amount payable by the Company in respect of any claim for loss or damage[/SIZE][SIZE=2].[/SIZE]



- My car was declared TOTAL LOSS by BPI/MS. I understand that paying us a huge amount of money to remove the hassle up ahead is a teasing offer. My question is, why can't BPI/MS REINSTATE/REPLACE a vehicle as stated in the POLICY agreement? San na napunta ung bayad sa Insurance? Mawawalan ka na nga ng sasakyan tapos kung kukuha ka ng bagong auto mauulit ulit ang cycle mo sa mortgage? hindi ba tayo talo sa ginagawa nila?



I hope someone can reply to my query. Coz' I'm planning to take my concern up a notch by filing a lawsuit. I need some professional advise. Thanks.

What do you mean by saan napunta ang bayad sa insurance?

How much exactly will be your loss by accepting a cash settlement?
There are specialist on flooded vehicles that are non casa. You may even
make a little money by buying back from your insurer your salvaged vehicle.
You generally can buy back your vehicle at around 160,000pesos salvage value.

Bpi ms does not have the facility to reinstate your vehicle.
How can you sue them for that?
It will save them money from advertising costs for the next 50 years
by simply settling your claim in cash. Damaging their brand by creative settlement options will be out of the question.

As to your bank, I hope you can negotiate a favorable settlement option.
That is another matter.