The car crashed and scrapped, and the loan was not paid off. Generally speaking, the department where you borrowed the car will deduct the cost of your loan according to the insurance claim, and the rest will be returned to you.

1. The owner of a motor vehicle applying for scrapping and updating shall fill in the Application Form for Examination and Approval of Motor Vehicle Change, Transfer, Modification, Stopping and Scrapping, and affix the owner's seal.

2. Register and review the application, and issue a notice of automobile scrapping for vehicles that have reached the retirement age; For motor vehicles that have not reached the retirement age, if they meet the standards of automobile retirement after inspection, they will be issued with a Notice of Automobile Retirement.

legal ground

Article 667 of the Civil Code of People's Republic of China (PRC) defines a loan contract as a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Article 668 A loan contract shall be in written form, except as otherwise agreed between natural persons. The contents of a loan contract generally include terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.

The first beneficiary of the loan that has just been repaid is the bank. How to compensate for scrapping?

Whether to pay the bank depends on the division of responsibilities of the traffic police on the spot. If the other party is fully responsible, it has nothing to do with your insurance company. If you are fully responsible, you can directly provide the bank with the owner's name (any bank as long as it is the owner's name) to the insurance company. The bank will ask the insurance company for compensation. It is unlikely to be paid directly to the owner. Note: It is most convenient to call the insurance company directly for consultation. General insurance companies will have detailed compensation procedures and rules. Before taking out insurance, car owners should also understand the relevant rules and take out insurance carefully.

Do I still have to pay back the loan if the car I borrowed is damaged and scrapped?

Answer: If the loan car is damaged, you have to pay back the loan. If the loan car fails to pay off the loan and the obligations of the lender are not fulfilled, and a traffic accident occurs at this time, the lender may claim compensation from the perpetrator, but the damage to the car does not affect the obligation to repay the loan. According to Article 671 of the General Principles of Civil Law of People's Republic of China (PRC), if the lender fails to provide the loan on the agreed date and amount, thus causing losses to the borrower, it shall compensate for the losses. If the borrower fails to collect the loan according to the agreed date and amount, it shall pay interest according to the agreed date and amount. Article 673 Where the borrower fails to use the loan according to the agreed purpose, the lender may stop issuing the loan, recover the loan in advance or terminate the contract.

Excuse me, I haven't paid off the balance of my installment car. The car crashed and was scrapped. How will the insurance company compensate me? I read the compensation form, and the first beneficiary of my insurance is the bank.

The first beneficiary of the loan vehicle is generally the bank, and the insurance beneficiary is also called the "insurance beneficiary", which refers to the person who is designated by the insured or the insured and has the right to claim the insurance money according to the insurance contract when the insurance accident occurs or the agreed insurance period expires.

The third paragraph of Article 18 of China's Insurance Law clearly stipulates that "the beneficiary refers to the insured or the person designated by the insured in the life insurance contract who has the right to claim insurance money".

Extended data

The first beneficiary is not necessarily the future shipper or promisor, because if the amount of the letter of credit is transferred to the transferee, the transferee is the shipper. The first beneficiary is usually:

(1) An exporter who does not export goods in his own name;

(2) Only some exporters are exporters. In principle, the first beneficiary should bear the transfer fee of the letter of credit.