The joy of buying a new car is very special for everyone, but imagine what would happen if that shiny car meets with an accident as soon as you step out of the showroom gate? Recently, many such incidents have come to light from different parts of the country, where the vehicle met with an accident within a few seconds of taking delivery. In such a situation, the first question that arises in the mind of every buyer is whether he will get an insurance claim for this loss or not?
As per the law and the rules of the Motor Vehicle Act, the legal responsibility of the vehicle passes to you as soon as you sign the delivery papers. According to the rules, the vehicle can leave the showroom only when its insurance is active. So, technically you should get a claim, but there are some tricky aspects! Come, let us know about these also.
Rules of insurance companies: When is the claim received?
Nowadays, under the rules of the Motor Vehicle Act, no vehicle is allowed to be taken out of the showroom without valid insurance. Most dealers activate Zero Depreciation insurance policy even before delivery of the vehicle.
This means that as soon as the vehicle crosses the threshold of the showroom, its insurance cover starts. If any accident occurs during this period, the insurance company is obliged to compensate for the loss. The customer has to pay only the file charge or a nominal deductible amount prescribed under the policy.
The most important condition is to have the vehicle registered.
Despite having insurance, there is one rule due to which your claim may be rejected and that is the RTO registration of the vehicle. According to the decisions of the courts and consumer commissions, driving a vehicle on a public road without a valid registration number is a legal offense and a serious violation of insurance conditions.
In a recent case, the State Consumer Commission upheld the decision of the insurance company to reject the claim because the registration number of the vehicle was not issued. In such cases, if the dealer has carelessly handed over the unregistered vehicle, then the court can impose a fine on the dealer, but the customer may also have to bear a large part of the loss.
What if the showroom staff is at fault?
Many times, while bringing the car out of the showroom or getting the gate pass cut, the driver or staff of the showroom is driving it. If an accident occurs before the formal delivery process is completed or while the showroom staff is driving, the entire legal and financial responsibility lies with the showroom (dealer). In such a situation, no loss of any kind can be recovered from the customer.
Do these things immediately in case of an accident
If God forbid such an accident happens, then instead of panic follow these legal steps-
- Notify immediately: Notify your insurance company and dealer immediately after the accident.
- Gather evidence: Make sure to take mobile photos and videos of the incident site and the damage caused to the vehicle.
- File an FIR: If third party damage has occurred, then an FIR is necessary for the claim.