Motor Insurance, who should pay salvage value on write off

[LouisCribben]

Peters car was written off by the insurance company with flood damage

The market value of the car is 20'000

Peter expects a cheque for 20'000

The insurance company enter into an agreement to sell the car to Jasons repair garage for 9'000 (salvage value)

The insurance company send Peter a cheque for 11'000

When Peter asks the insurance company (a very pleasant girl in India answers the phone) why did they not send a cheque for 20'000, she says that Peter needs to ask Jasons repair garage to send Peter a cheque for 9'000.

Peter was expecting that the insurance company would pay him 20'000, and that Jasons repair garage would pay the insurance company 9'000

The insurance company say that it is standard practice for the salvage garage to pay the insured party the salvage value..........

Peter now has to call Jasons repair garage to ask him for a cheque for 9'000, he feels that he shouldn't have to deal with the salvage garage..

Is the scenario above common practice ?

 

[mathepac]

... Is the scenario above common practice ?

Standard practice as detailed here before.

 

[boe]

Yes, that's standard practice. They need to contact the salvage company and they will send on a cheque for the salvage value.

 

[Ravima]

normal practice - difficulty is if he does NOT get the €9000. He needs to contact the salvage buyer immediately to get the money as if he delays, then the value of salvage might lessen. He ends up with the €20K anyway.