CODE OF PRACTICE FOR MOTOR VEHICLE SALVAGE DISPOSAL (INDIA)

CODE OF PRACTICE FOR MOTOR VEHICLE SALVAGE DISPOSAL (INDIA)

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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	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

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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.