There are reports in news sometimes that the car thieves are sometimes allegedly involved in purchase of Total loss vehicles and using the documents of total loss vehicles in converting stolen vehicles as genuine vehicles.
Suggestions and modes for curtailing such activity by bad elements are expressed as our views on the matter for a discussion
OVERVIEW
MV act in India provides that vehicles which become unworthy to ply on road, owner should inform to the concerned registration authority and the same will be noted in its books of records and registration cancelled.
General conclusion of same is taken by law enforcing agencies that if a vehicle is declared total loss the owner/ insurance company should thereafter inform the registration authority and get the registration certificate cancelled......... but the situation is quite complex.... Most of the total loss / constructive total loss etc do not recommend that the vehicle can not be repaired again but in all such cases the vehicle stand declared total loss by insurance companies as the repairs cost may be more than the economic liability of insurers in case the same is declared total loss as other factors like lower IDV of vehicle becomes a major factor.
In advanced countries .... the system is different ... as for all such declared vehicles as total loss the same are sent to dismantles and they issue certificate to the owner/insurers that the vehicle is properly dismantled and its identification numbers destroyed and also inform the registration authorities for the same. Also if the vehicle is not to be dismantled the same is repaired and they issue certificate that the vehicle has be genuinely repaired and is fit to ply on road and the information sent to Registration authority and after vehicle after repairs passes the fitness test the same is allowed to ply on the road and sale of same allowed.
The same can not apply to the INDIAN condition in our opinion for many reasons .... who will monitor the dismantlers ... the dismantling is not a preferred choice in Indian condition .... and repairs with used 2 nd hand parts is often preferred and furthermore repairs costs by local repairers are far less than being charged by authorized dealerships and almost all such vehicles are subsequently repaired by local roadside repairers.
WHAT CAN BE DONE ???
At start the genuine salvage buyers should take preventive measures as ...... Whenever they buy a total loss vehicle along with the vehicle documents they should make records as under :
a) In case they intend to dismantle the vehicle completely then they should get the registration cancelled by informing the registration authority and should also deposit the manufacturer's plate with the registration authority and should get certificate for the same from authority.
b) In case they intend to repair the vehicle then the said repairs should be properly recorded and one of the best way is to engage a local surveyor ( Independent Surveyor Loss Assessor) who will inspect the vehicle during its all stages of repairs and will confirm the modes of repairs undertaken and will finally inspect the vehicle after repairs and certify that the same is satisfactorily repaired. The report for same should be obtained and copy of same given to the owner / INSURERS of vehicle also for his/their record. There will be some fee to be born by the salvage dealer for the same but same will be worth the effort. The said final inspection by surveyor will also help you in seeking reinsurance of the vehicle with the insurers. All such records should be properly maintained.
The insurance companies may also insist for the said practice and may include provisions of same in their tender documents with provision that at time of delivery of salvage only the salvage will be delivered with certificate for such delivery . Now and if buyer opts for mode
(a) the RC will be sent to registration authority for cancellation of RC. and in case opts for
( b) the RC will be handed over after certification by the licensed surveyor along with the report with detailed photographs for nature and manner of repairs carried out.
Such survey reports will be somewhat like final survey and reinspection report without assessment part.
WHAT MORE THE BUYERS CAN DO ????
Since the buyers of the trade have more in depth knowledge of their competitors, they can and should inform the law enforcing agencies about any such activity being carried out by some bad elements. This is very important as wrong activities by bad elements brings the even genuine persons in scanner of the law enforcing agencies . One should also participate in salvage deals openly in a fair and transparent manner.
LET US ALL PLEDGE THAT SUCH BAD ELEMENTS WILL NOT FIND THIS SECTOR SAFE OR SUITABLE FOR THEM AND WILL NOT BE SPARED FOR THEIR WRONG ACTIVITIES
These are personal views on the matter and more suggestions are welcome.
Suggestions and modes for curtailing such activity by bad elements are expressed as our views on the matter for a discussion
OVERVIEW
MV act in India provides that vehicles which become unworthy to ply on road, owner should inform to the concerned registration authority and the same will be noted in its books of records and registration cancelled.
General conclusion of same is taken by law enforcing agencies that if a vehicle is declared total loss the owner/ insurance company should thereafter inform the registration authority and get the registration certificate cancelled......... but the situation is quite complex.... Most of the total loss / constructive total loss etc do not recommend that the vehicle can not be repaired again but in all such cases the vehicle stand declared total loss by insurance companies as the repairs cost may be more than the economic liability of insurers in case the same is declared total loss as other factors like lower IDV of vehicle becomes a major factor.
In advanced countries .... the system is different ... as for all such declared vehicles as total loss the same are sent to dismantles and they issue certificate to the owner/insurers that the vehicle is properly dismantled and its identification numbers destroyed and also inform the registration authorities for the same. Also if the vehicle is not to be dismantled the same is repaired and they issue certificate that the vehicle has be genuinely repaired and is fit to ply on road and the information sent to Registration authority and after vehicle after repairs passes the fitness test the same is allowed to ply on the road and sale of same allowed.
The same can not apply to the INDIAN condition in our opinion for many reasons .... who will monitor the dismantlers ... the dismantling is not a preferred choice in Indian condition .... and repairs with used 2 nd hand parts is often preferred and furthermore repairs costs by local repairers are far less than being charged by authorized dealerships and almost all such vehicles are subsequently repaired by local roadside repairers.
WHAT CAN BE DONE ???
At start the genuine salvage buyers should take preventive measures as ...... Whenever they buy a total loss vehicle along with the vehicle documents they should make records as under :
a) In case they intend to dismantle the vehicle completely then they should get the registration cancelled by informing the registration authority and should also deposit the manufacturer's plate with the registration authority and should get certificate for the same from authority.
b) In case they intend to repair the vehicle then the said repairs should be properly recorded and one of the best way is to engage a local surveyor ( Independent Surveyor Loss Assessor) who will inspect the vehicle during its all stages of repairs and will confirm the modes of repairs undertaken and will finally inspect the vehicle after repairs and certify that the same is satisfactorily repaired. The report for same should be obtained and copy of same given to the owner / INSURERS of vehicle also for his/their record. There will be some fee to be born by the salvage dealer for the same but same will be worth the effort. The said final inspection by surveyor will also help you in seeking reinsurance of the vehicle with the insurers. All such records should be properly maintained.
The insurance companies may also insist for the said practice and may include provisions of same in their tender documents with provision that at time of delivery of salvage only the salvage will be delivered with certificate for such delivery . Now and if buyer opts for mode
(a) the RC will be sent to registration authority for cancellation of RC. and in case opts for
( b) the RC will be handed over after certification by the licensed surveyor along with the report with detailed photographs for nature and manner of repairs carried out.
Such survey reports will be somewhat like final survey and reinspection report without assessment part.
WHAT MORE THE BUYERS CAN DO ????
Since the buyers of the trade have more in depth knowledge of their competitors, they can and should inform the law enforcing agencies about any such activity being carried out by some bad elements. This is very important as wrong activities by bad elements brings the even genuine persons in scanner of the law enforcing agencies . One should also participate in salvage deals openly in a fair and transparent manner.
LET US ALL PLEDGE THAT SUCH BAD ELEMENTS WILL NOT FIND THIS SECTOR SAFE OR SUITABLE FOR THEM AND WILL NOT BE SPARED FOR THEIR WRONG ACTIVITIES
These are personal views on the matter and more suggestions are welcome.
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