What is the claim procedure in case of a vehicle purchased under a hire purchase scheme?
Technically hire purchase company is the owner of the vehicle, while the registered owner is the hirer. By an endorsement made on the policy any money payable under the policy(except the repairers bill) will be paid only to the financiers and their discharge is final. However in practice the financiers interest is limited to his financial committment to the vehicle and he will receive the entire claim amount as a trustee only. Naturally the financiers will have to refund balance if any after adjusting his outstanding amount to the hirer.
