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 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?
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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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