The General Insurance Industry is showing promising growth due to technology and internet. The customers want fast claim settlements and better service. With the increasing number of private insurers and increased competition undoubtedly the demand for better service and fast claim settlements has become the need of the hour. Every Insurer demands their Surveyors for fast claim settlement to retain their clients.
For many surveyors and Insurers, a major step during claim assessment and settlement is disposing the scrap / salvage generated during the loss. Many Surveyors and Insurers are presently not aware of the process involved in disposal of scrap and how a good Salvage partner can really solve this problem for them.
The major PSU Insurers have a clearly laid out guidelines for processing salvage disposal during claim assessment. Select E Auctioneer Pvt Limited is an online auction company which has been providing this service to all PSU Insurers and many surveyors across India. Let us understand the step by step process of Salvage disposal as per CVC guidelines followed by Select E Auctioneers Pvt Ltd.
Guidelines for Disposal of Salvage Select E Auctioneer Process
Salvage value exceeding the above limit but up to an amount of Rs.50,000/- shall be disposed of by inviting offers from prospective buyers by issuing sale notices to all the salvage buyers. At least 3 offers must be received to process the sale. The offers shall be received in writing before date to be specified in advance. Marketing among our all India database of buyers, through email, & tele calling.
- Arranging buyers visit at site
- Arranging quotations from prospective buyers.
- Management of security amount from the buyers.
- Submitting quotations to Insurers and Surveyors
- Final payments and lifting coordination with the Buyer & Insured.
Submitting an exclusive salvaging report to the Insured and Surveyor
- In other cases where the expected value of salvage is exceeding Rs.50,000/- but up to Rs.2 lacs Surveyors/Insurers appoints auctioneer for salvage sale. The cost of disposing the salvage by means of advertisement should not be beyond 40% of the salvage expected. Advertisement in One newspapers is published as required.
- Marketing among our all India database of buyers, through email, & tele calling.
- Arranging buyers to visit at site and coordination with them.
- Taking EMD’s from the prospective buyers.
- Giving training and bidding manuals to the Buyers.
- Providing witness ID’s and passwords to the concerns parties to witness the live auction.
- Providing e-auction report to the Insurers/Surveyors for their approval.
- Final payments and lifting coordination with The Buyer & Insured.
- Submitting an exclusive salvaging report to the Surveyor.
3. For all salvage where the expected value exceeds Rs.2 lacs. A sale notice in more than one
newspaper as may be necessary and which is most likely to be read by the prospective buyers of the salvage to be disposed off. Disposal through auction may be carried out, after ascertaining that it would fetch a better salvage value.
Surveyors/Insurers appoints us for salvage sale.
- Advertisement in Two newspapers as required marketing among our all India database of buyers, through
email, & tele calling. - Arranging buyers to visit at site and coordination with them.
- Taking EMD’s from the prospective buyers.
- Providing training and bidding manual to the Buyers.
- Providing witness IDs’ and passwords to the concern parties to witness the live auction.
- Providing e-auction report to the Insurers/Surveyors for their approval.
- Final payments and lifting coordination with The Buyer & Insured.
- Submitting an exclusive salvaging report to the Surveyor.
4. The sale notices inserted in the press should,inter-alia, contain the following particulars:
- A brief description of the item(s) offered for sale, indicating the approximate quantity and condition thereof, as also the location where the same can be inspected by prior arrangement.
- The item(s) offered for sale must be strictly on an ‘as is where is basis with all faults’.
Offers will be received in sealed covers indicating brief particulars of the offer on top by
the concerned, accompanied by Earnest Money Deposit remitted by a Bank Draft/Pay Order
(but not by cheque) drawn in favor of the Company for an amount not less than 10% of the offer value so as to reach not later than … (date to be specified).
SEA publishes a proper Sale notice as per guidelines:
- E-Auction Participation Form are collected from all prospective buyer having all the terms & condition as per CVC/GIPSA/Insurance Guidelines.
- Proper and quick salvage disposal is important for claim settlement and to maximise the salvage value, a good salvage disposal partner can be of great use.
