Thiruvananthapuram: Thousands of cars damaged in the floods are being re-sold in the state with the connivance of the insurance surveyors and automobile dealers, it is alleged. This is against the stand taken by the Kerala Automobile Dealers Association that damaged cars which have been repaired would be treated as scrap.
As per the data available, brand new cars worth Rs 10, 000 crore had been submerged in the floods for five days. These were expected to be sold during the Onam season. Nearly 1,000 new cars, 7,000 used cars and 8000-plus two-wheelers were affected. There are 400 insurance surveyors on the panel of four insurance companies in the state.
During the initial flood in July that affected Pala and Kuttanad, the insurance claim was minimal as per insurance surveyors. But once the floods ravaged the entire state in August, even the vehicles which were not damaged much are being targeted for sale by the North Indian automobile lobby.
An insurance surveyor told Deccan Chronicle that over the last few weeks a leading car company had increased the labour charges three times. He alleged that in the guise of helping the vehicle owner, the insurance surveyor and the dealer had increased the estimates.
"If earlier, an insurance surveyor was earning a minimum amount, it has shot up to several lakhs now.
The surveyors who are objecting to this mechanism will be rejected from the panel to assess the damage. The agents of the North Indian automobile lobby have started selling flood-affected cars by opening several yards across the state," said an insurance surveyor.
He explained how a car's carpet which was affected in the floods was assessed by the insurance surveyor stating that the antenna should also be changed. This would benefit the insurance surveyor and the dealer.
S. Preetha, Kochi regional manager of the public sector New India Assurance company, told Deccan Chronicle that she had received 10, 000 claims, including that for vehicles, houses, machinery and cattle.
"New India Assurance alone has received over 8, 000 claims for cars in the state. However, the largest claims have come from two-wheeler users," said Preetha.
But she denied the allegation raised by the insurance surveyor and added that the company has guidelines prescribed by the department of financial services under the union finance ministry.
She added that quotations from various surveyors are used while assessing the damage to vehicles and that there was no scope of corruption.
