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Old 29th August 2016, 15:07   #1
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Default Buying a 'total loss' vehicle from an insurance company

Was interested in buying for a project a crashed/totaled HD Sportster 883 from an insurance company in Karnataka. I have 2 queries:

1) A friend advised me that as per the rules, once the insurance company writes off the bike as 'total-loss', it has to be de-registered in the RTO records and a portion of the Road-Tax (depending on life of vehicle) is refunded to the last owner of the vehicle. I have to buy it as Scrap and once rebuilt it has to be re-registered/tax paid afresh.

From the above look of things, it seems a complicated and uphill task! But wanted to know if the above is the exact procedure and has anybody 'successfully' managed to go through this & re-register the restored bike in Karnataka?


2) If a customer had an accident and does not have full insurance cover and the bike is NOT a Total-Loss and he wants to dispose off in as-is damaged condition, can the ownership be legally transferred to me in the damaged condition BEFORE I start the rebuild?

Thanks in advance for the kind inputs from the knowledgeable members here.
Haroon

Last edited by Haroon : 29th August 2016 at 15:27.
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Old 31st August 2016, 12:44   #2
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Default Re: Buying a 'total loss' vehicle from an insurance company

The HD sportster 883 is a good option that you are considering. But you will have to get the bike soon, since the Insurance Company organises auctions with these bikes as they have a turnaround time for a particular case and they just give away to the highest bidder or a salvage buyer who has some tie-ups with the company.

Quote:
Originally Posted by Haroon View Post
1) A friend advised me that as per the rules, once the insurance company writes off the bike as 'total-loss', it has to be de-registered in the RTO records and a portion of the Road-Tax (depending on life of vehicle) is refunded to the last owner of the vehicle. I have to buy it as Scrap and once rebuilt it has to be re-registered/tax paid afresh.
De-registration of the bike is an uphill process, absolutely true. Moreover the officials aren't that helpful as this is an unusual circumstance, so going through the whole process would be time consuming. One thing to look out for during transfer of papers is whether the bike is hypothecated or not. If there is no loan on the bike, then there would be no problems with the transfer.

One of the cases wherein deregistration is considered when the frame of the vehicle is to be changed (The old registration number needs to be removed). The stuff regarding the road tax is something I am hearing for the first time.
If you do plan to change the frame (Chassis) of the bike, you will need to de-register according to the rules. (Related information)

If you don't then I would suggest that you carry out the repairs and then get the bike registered in your name by the normal process of owner transfer. (Link here)
Here are the documents for the transfer: CMV29 and CMV30

Quote:
If a customer had an accident and does not have full insurance cover and the bike is NOT a Total-Loss and he wants to dispose off in as-is damaged condition, can the ownership be legally transferred to me in the damaged condition BEFORE I start the rebuild?
The transfer of ownership in the damaged condition is not possible as far as I know. The vehicle is inspected before the ownership transfer and I don't think they consider damaged vehicles.

To sum it up, rebuild the bike and get it registered in your name as the second owner to avoid the frequent visits to the RTO and long waiting for the paperwork.

Hope this helps.

Last edited by Omkar : 31st August 2016 at 12:49.
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Old 31st August 2016, 20:29   #3
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Default Re: Buying a 'total loss' vehicle from an insurance company

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Originally Posted by Omkar View Post
The HD sportster 883 is a good option that you are considering. But you will have to get the bike soon.....

De-registration of the bike is an uphill process, absolutely true. Moreover the officials aren't that helpful.........

One of the cases wherein deregistration is considered when the frame of the vehicle is to be changed (The old registration number needs to be removed).......

If you don't then I would suggest that you carry out the repairs and then get the bike registered in your name...............

To sum it up, rebuild the bike and get it registered in your name as the second owner to avoid the frequent visits to the RTO and long waiting for the paperwork.

Hope this helps.

Many thanks Omkar for the prompt and very detailed response and the links and guidance

I am considering using part of the original frame to keep the same VIN number, so I am now thinking of probably looking for option 1) An accident bike from an individual seller (I know thats also like looking for a pin in a haystack) rather than the total loss bikes from Insurance. Somehow it seems the scrap dealers always reach the insurance company a lot 'faster' than ordinary buyers like us Option 2) Probably pick up a good used 11 or 12 bike from outside Karnataka and then change to KA regn. Most prices of even high mileage used Iron 883 in KA seem like out at lunch kind of prices!

Anways shall update here if I have any progress
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Old 1st September 2016, 10:05   #4
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Default Re: Buying a 'total loss' vehicle from an insurance company

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Originally Posted by Omkar View Post
The transfer of ownership in the damaged condition is not possible as far as I know. The vehicle is inspected before the ownership transfer and I don't think they consider damaged vehicles.
Please correct me if I'm wrong, for ownership transfer vehicle inspection is not necessary. All that we need is valid paper, transfer form and sufficient proofs (identity and address proof) of buyer.
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Old 1st September 2016, 12:29   #5
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Default Re: Buying a 'total loss' vehicle from an insurance company

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Originally Posted by Mr.Boss View Post
for ownership transfer vehicle inspection is not necessary. All that we need is valid paper, transfer form and sufficient proofs (identity and address proof) of buyer.
I should have mentioned that my comment was based on an experience of a friend of mine whose bike was just primarily inspected during the ownership transfer. Though it was minimal, the bike had to be taken to the RTO and the concerned person just checked the bike whether it was in a working condition or not.

As you correctly mentioned the emphasis is on the paperwork, the working condition of the vehicle is also a factor to be considered IMO. Other than that the process is pretty much smooth.
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Old 1st September 2016, 13:42   #6
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Default Re: Buying a 'total loss' vehicle from an insurance company

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As you correctly mentioned the emphasis is on the paperwork, the working condition of the vehicle is also a factor to be considered IMO.
Taking my own experience with all my used vehicles (count exceeds 10, 2 wheeler and 4 wheeler included) in 3 different states (TN, GJ, MH), right from mid 2000s till date, never ever taken any of those vehicles to RTO for ownership transfer. Physical inspection is required only during fitness certification (re-test)
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Old 3rd September 2016, 20:03   #7
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Default Re: Buying a 'total loss' vehicle from an insurance company

Needed a little more kind advise on the issue of ownership transfer of an accident/regular bike from outside state.

If physical inspection is not required at a Karnataka RTO and I have to purchase a bike from a state where I do not have an address proof(outside state), do I just pay the buyer and take his signature on the empty forms or is there any other formality before moving the bike from that state. Similarly is the NOC from that state to be made on my name or the 'existing owner' or its just without a name and on the plate number of the bike?

Thanks
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