QUOTE(imperialrealcs @ Apr 30 2013, 04:58 PM)
nevertheless, i never thought insurance company are that stupid?
pay your friend rm500k to settle
spend lets say 10k to refurbish it
sell rm350k as refurbish car?
sorry my math is bad but where is the "profit" that i dont see for the insurance company?
okay, u said they accomplice to fraud.
insurance company paid rm500k to settle
sold to "partner" bengkel for 50k
insurance company still lost 450k.
the bengkel spend 10k repairing it
the bengkel resell for 350k
profit 290k divided by 2, bengkel and insurance company
insurance company lost = 450k - 145k divided profit = 305k loss?? so where is the profit again? sorry i dont see it. my understanding abit poor need someone to shed light on this
Dude. Read properly. I never said that the insurance company made any profit for it.
1. My friend took a sportscar and
test drove it. Means the car still belong to the car company. Car insurance covered by related insurance company.
2. Means: holding company owns both car company and insurance company.
3. Means: insurance company pays car company RM500K.
a. To holding company: it's left hand to right hand transaction, no real money loss after adjustments, etc.
b. To car company: gained full covered amount, so no problem. The car company's involvement in this case ends here.
c. To insurance company: RM500K loss, maybe can recover some from reinsurance treaties, excess of loss policies and finally sell the car wreck to chop-shops/workshops for car parts.
4. End of the day, the insurance company do not profit from anything. It's a fact that the insurance company made a loss, maybe instead of RM500K, maybe just lose RM450K after reinsurance recovery and XOL.
5. Insurance company sell the car wreck to a bengkel for RM50K. Now, the insurance company just loss a total of RM400K. The insurance company's involvement in this case ends here.
6. Bengkel repairs the car for RM100K.
7. Bengkel sells the car for RMXXXK and make a tidy profit from it.
8. Bengkel divides the profit with the players.
From (5) to (8) do you see who are the players involved in the entire process from certifying the car as a wreck, transferring the car grant from owner to insurance company to workshop, approving the car wreck sales to workshop, providing parts to repair the car wreck, repairing the car wreck, marketing the newly repaired car, selling the car?
Is it clear enough for your understanding?
Lastly do you know how does this whole transaction affect the general public like you and me? The total loss amount that the insurance company paid out made up one part of the loss-ratio suffered by the insurance industry thus causing the rise in our auto insurance premium this year onwards.