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All general insurers must ensure the cancellation of the Certificate of Registration for vehicles settled under total loss claims. Law enforcement authorities report that scrap dealers misuse salvage and documents from total loss accident vehicles to give false identities to stolen vehicles. Insurers must prevent this misuse by complying with Section 55 of the Motor Vehicle Act 1988, which requires reporting destroyed or permanently incapable vehicles and forwarding registration certificates to the registering authority.
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[Image omitted. See the official document.]
Ref: IRDAI/NL/CIR/MOTOD/118/07/2019
Date: 25th July, 2019
To,
ALL GENERAL INSURERS (OTHER THAN STAND-ALONE HEALTH INSURERS AND SPECIALISED INSURERS)
Re:- Misuse of Total Loss Accident Vehicle Documents over Stolen Vehicles
It has come to the notice of Authority that in case of Total Loss (TL) of the vehicle, salvage of the vehicle is being sold to scrap dealers without cancelling Certificate of Registration (RC) of the vehicle.
It has been informed by the Law Enforcement Authorities that documents pertaining to such vehicles are being misused like giving new identity to the stolen vehicles by forging engine number and chassis number of destroyed vehicles under TL claims.
As per Section 55 of Motor Vehicle Act 1988,
(1) If a motor vehicle has been destroyed or has been rendered permanently incapable of use, the owner shall, within fourteen days or as soon as may be, report the fact to the registering authority within whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, and shall forward to the authority the certificate of registration of the vehicle.
(2) The registering authority shall, if it is the original registering authority, cancel the registration and the certificate of registration, or, if it is not, shall forward the report and the certificate of registration to the original registering authority and that authority shall cancel the registration.
Yours faithfully,
[Image omitted. See the official document.]
(Yegnapriya Bharath) Chief General Manager (NL)
सर्वे नं. 115/1, फाइनेंशियल डिस्ट्रिक्ट, नानकरामगुडा, हैदराबाद-500 032, भारत | Survey No. 115/1, Financial District, Nanakramguda, Hyderabad-500 032, India (न) : +91-40-2020 4000 वेबसाइट : www.irdai.gov.in ( : +91-40-2020 4000 Website : www.irdai.gov.in
