CODE OF
PRACTICE FOR MOTOR VEHICLE SALVAGE DISPOSAL (INDIA)
CATEGORY
|
A
|
B
|
C
|
D
|
E
|
F
|
G
|
Type
of Damages
|
Vehicle
Engine Body shell, Chassis Badly damaged and beyond repairs. Total Burnt
Vehicle Cases
|
Vehicle
badly damaged and opined that same can by no means made fit to ply on roads
again
|
Vehicle
major damage, May require replacement of either engine or chassis and may get
repaired
|
Vehicle
major damage, settlement made considering new parts, but can be repaired and made fit to ply on roads
|
Vehicle
damage settled due to less IDV or being nil dep policy and vehicle can be
repaired and is still roadworthy
|
Vehicle
theft cases
|
Accidental
of Non Accidental, But completed the life and life not further extended
|
Condition
|
Vehicle
having become junk / scrap only
|
Most
of vehicle will be junk/scrap but some parts will be re-useable as safe
|
REPAIRABLE
Replacement with engine or chassis and old and new parts
|
REPAIRABLE
Repairs instead of replacement of parts and use of old and new making viable
the repairs
|
REPAIRABLE
Normal
means of repairs
|
Vehicle
not traceable
|
Not
being further used as completed its useful life
|
Example
|
Total
burnt, Complete vehicle crushed
|
Extensively
damaged and can not be repaired
|
Requires
veh. ID part replacement
|
Body
shell damaged and can be repaired does not require veh ID parts replacement
|
Normal
repairs
|
Entire
vehicle stolen
|
Old
vehicle and not being in use further
|
ROAD
WORTHINESS
|
NEITHER
E ROADWORHTY NOR REPAIRABLE
|
Disabled
and may become roadworthy after repairs
|
REAPIRABLE
AND WILL BE ROADWORTHY
|
NA
|
MAY
OR MAYNOT BE ROADWORHTY
|
||
Type
of settlement
|
Total
Loss Cases
|
Constructive
Total cases
|
Total
loss
|
Abandoned
Vehicle
|
|||
Registration certificate status
|
R/C
must be cancelled and as per provision of Sec 55 of MV Act The owner be
advised to inform the RTO and get the R/C Cancelled.
|
Insurers
to Request for suspension of R/C with RTO under Sec 53 of MV Act
|
No
Action except for change of ownership if required
|
As
in Case A type
|
R/C
validity has expired
|
||
What
should be done for Registration certificate
|
The
VIN No. plate be removed and submitted with RTO. After cancellation of R/C
the Chassis no and Engine numbers may be got destroyed and photo records be
kept by the owner.
|
R/C
to be submitted with RTO & will
remain suspended and buyer will either get suspension revoked under sec 53 of
MV act or may get the R/C cancelled as per Sec 55 of MV act and follow mode
as in Category A and B.
|
No
action
|
R/C
must be got cancelled
|
Public
may be notified and R/C be kept in own possession in records
|
||
What
should be done with security number plate
|
The
Security Registration Number Plate should be damaged and submitted with RTO
and photo records of same be kept.
|
The
Number plates must be removed and submitted with the RTO during the suspended
R/C period and buyer if opts for repairs then he on getting revoked the R/C
can get the same from RTO issued or reissued
|
No
Action
|
No
Action can be taken
|
The
same be removed and either kept in records or destroyed and record of same be
kept
|
||
Sale
value will be for
|
The
Sale of wreck/ junk be made and valuation of same will be based on saleable
vehicle by weight.
|
The
sale will be based on the wreck value along with salvage value of re-useable
parts
|
Salvage
or wreck as per the buyers decision
|
Salvage
in repairable condition
|
No
Sale value . Only if recovered the same will be applicable as per condition
on recovery as category A, B, C,D or E.
|
For
junk of vehicle
|
|
Documentation
with the buyer
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Cancelled
RC Copy be provided to buyer and Affidavit be obtained from buyer for
dismantling the vehicle along with ID and Address proof of buyer
|
Letter
for request for suspension of R/C be provided and RTO may after passing of
fitness tests for roadworthiness and mode and means of repairs used scrutiny,
allow R/C restoration and may charge applicable registration taxes
|
R/C
and transfer papers be provided to buyer after getting full payments and
clearance of hyp
|
If
recovered sale will be as per category applicable
|
Only
photocopy of R/C be provided to buyer with remarks sale for dismantling of
vehicle on it
|
||
Registration
taxes
|
Owner
on cancellation of RC may apply for refund of lifetime tax if applicable in his case.
|
Owner
may apply for refund of lifetime tax if applicable in his case
The
buyer if repairs and gets R/C revoked will have to pay the taxes for further
periods opted as annual or life long
|
Owner
may negotiate for same with the buyer
|
Owner
on cancellation of RC may apply for refund of lifetime tax if applicable in his case.
|
Not
Applicable
|
||
i
The Section 53, 54 and Sec 55 of INDIAN MV Act 1988 are reproduced below
53. Suspension of
registration. –
(1) If any
registering authority or
other prescribed authority
has reason to
believe that any
motor vehicle within
its jurisdiction - (a) is
in such a
condition that its
use in a
public place would
constitute a danger
to the public, or
that it fails
to comply with
the requirements of
this Act or
of the rules
made thereunder, or
(b) has been, o r is
being, used for
hire or reward
without a valid
permit for being
used as such, the
authority may, after
giving the owner
an opportunity of
making any representation he
may wish to
make (by sending
to the owner
a notice by
registered post acknowledgment due
at his address
entered in the
certificate of registration), for
reasons to be
recorded in writing,
suspend the
certificate of registration
of the vehicle- (i) in any
case falling under
clause (a), until the
defects are rectified to
its satisfaction; and (ii) in
any case falling
under clause (b), for a
period not exceeding
four months. (2) an authority
other than a
registering authority shall,
when making a
suspension order under
sub-section (1), intimate in
writing the fact
of such suspension
and the reasons
therefor to the
registering authority within
whose jurisdiction the
vehicle is at
the time of
the suspension. (3) Where the
registration of a
motor vehicle has
been suspended under
sub-section (1) for a continuous
period of not
less than one
month, the registering authority,
within whose jurisdiction
the vehicle was
when the registration
was suspended, shall,
if it is
not the original
registering authority, inform
that authority of
the suspension.
(4) The owner of
a motor vehicle
shall, on the
demand of a
registering authority or
other prescribed authority
which has suspended
the certificate of
registration of the
vehicle under this
section, surrender the
certificate of registration. (5) A
certificate of registration
surrendered under sub – section
(4) shall be
returned to the owner
when the order
suspending registration has
been rescinded and
not before.
Corresponding Law. – Section 53 corresponds
to section 33
of the Motor
Vehicles Act, 1939.
Objects and Reasons. – Clause 54
empowers the registering
authorities to suspend
the certificate of
registration of a
motor vehicle, if
the vehicle is
used for hire or
reward without a
permit. It also empowers
the registering authority
to suspend the
certificate of registration
of a vehicle
if the vehicle
is mechanically defective
or if its
use on public
road will endanger
public safety until
the defects are
rectified and the
vehicle is certified
to be road
worthy.
54. Cancellation of registration
suspended under section
53. –
Where the
suspension of registration
of a vehicle
under section 53
has continued without
interruption for a period
of not less
than six months,
the registering authority
within whose jurisdiction
the vehicle was
when the registration
was suspended, may,
if it is
the original registering
authority, cancel the
registration, and if it
is not the
original registering authority,
shall forward the
certificate of registration
to that authority
which may cancel
the registration.
Corresponding Law. –
This is
a new provision
in the 1988
Act.
55. Cancellation of registration. –
(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. (3) Any registering authority
may order the
examination of a motor
vehicle within its
jurisdiction by such
authority as the
State Government may by
order appoint and,
if upon such
examination and after giving
the owner an
opportunity to make
any representation he
may wish to
make (by sending
to the owner
a notice by
registered post acknowledgement due
at his address
entered in the
certificate of registration), it
is satisfied that
the vehicle is
in such a
condition that it
is incapable of
being used or its
use in a public
place would constitute
a danger to
the public and
that it is
beyond reasonable repair,
may cancel the
registration. (4) If a registering
authority is satisfied
that a motor
vehicle has been
permanently removed out
of India, the
registering authority shall
cancel the registration. (5) If a
registering authority is
satisfied that the
registration of a motor
vehicle has been
obtained on the
basis of documents
which were, or by representation of
facts which was,
false in any
material particular, or
the engine number
or the chassis
number embossed thereon
are different from
such number entered
in the certificate
of registration, the
registering authority shall
after giving the
owner an opportunity
to make such
representation as he
may wish to
make (by sending
to the owner
a notice by
registered post acknowledgement due
at his address
entered in the
certificate of registration), and
for reasons to
be recorded in
writing, cancel the
registration. (6) A
registering authority cancelling
the registration of
a motor vehicle
under section 54
or under this
section shall communicate
such fact in
writing to the
owner of the
vehicle, and the
owner of the
vehicle shall forthwith
surrender to that
authority the certificate
of registration o f the vehicle. (7) A registering
authority making an
order of cancellation
under section 54
or under this
section shall, if
it is the original registering
authority, cancel the
certificate of registration
and the entry
relating to the
vehicle in its
records, and, if
it is not
the original registering
authority, forward the
certificate of registration
to that authority,
and that authority
shall cancel the
certificate of registration
and the entry
relating to the
motor vehicle in
its records. (8) The expression “original registering
authority” in this
section and in
section 41,49,50,51,52,53 and
54 means the
registering authority in
whose records the
registration of the
vehicle is recorded. (9) In this
section “certificate of registration”
includes a certificate
of registration renewed under
the provisions of
this Act. Corresponding Law. – Section 55
corresponds to section
34 of the
Motor Vehicles Act, 1939.
Objects and Reasons. – Clause 55
contains provisions for
the cancellation of the certificate
of registration by
the registering authorities
where the vehicle
has been destroyed
or has been
rendered permanently incapable
of use or
has been lost
and not recovered
or is otherwise
not traceable or
its use will
constitute a danger
to public safety.
It also provides
that the registering
authorities may cancel
the certificate of
registration if the
registering authority is
satisfied that engine number
and chassis number
noted in the
certificate of registration
differs from that
found in the
vehicle, or that
the registration has
been obtained by
misrepresentation or fraud.
