Company Car Accident: Who Covers Costs and What Happens to My Contribution?

I was assigned a company car worth 15 lakhs (company limit is 12 lakhs, I paid 3 lakhs additional). After 6 months of driving the car, my car had an accident and it was totaled.

My Questions:

- The tax and insurance component was 2 lakhs, which the company will lose. As the car is totaled, will I have to pay for that, or will the company cover it?
- I paid 3 lakhs to buy the car. Will the company refund me or prorate my portion?

Who was driving the car? You or your driver? If your driver, then who employed him - you in your personal capacity or was he a company employee? Who has totaled the car? Has the insurance adjuster declared the car totaled?

Are the insurance authorities ready to pay the insurance? Since you paid 20% of the amount at the time of purchase, whatever money you get from insurance, 20% of the amount you should keep, and the rest 80% should go to the company.

If the insurance authorities refuse to pay any amount because of negligent driving, then it becomes a tricky case. Of the Rs 12 Lakh that the company paid, how much they ask you to pay remains to be seen.

Thanks,
Dinesh V Divekar

1) I was driving the car myself.

2) The insurance company is declaring the car as totaled.

3) The insurance company is willing to pay the insured value. My only question is about the cost of taxes that were paid on the car. Will that be borne by me or the company?

Regards,
Niral

Who paid the taxes initially - you or your company? The division should be apportioned as per the terms of the agreement. However, if the terms of the agreement do not include this particular clause, then it's better to apportion it 80:20 - 80% by the company and 20% by yourself.

Ok...

Regards,
DVD