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Old 26th March 2019, 16:01   #1
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Default Car declared total loss 4 years back, but is still running in our name!

This Strange case of i don't know what to say!

As many might know my car Skoda Rapid got drowned in Chennai Floods (Dec 2015). The Car was declared a Total Loss by the Dealers and the same as taken up with the Insurance Agency.

The Agency honored us the IDV value of the car by doing the following:
They Auctioned the car and it fetched XX amount of Rupees
The Remaining YY amount was given by the insurance company to match the IDV

All forms were signed and given to the (Scrap) Dealer from Bangalore who took the car from us. I am not too sure if he gave us an under taking, of transferring the ownership of the vehicle, but what i know is the Insurance company cancelled the License.

I did hear about the car being resurrected back and is doing duty in Bangalore roads.

Couple of days back i got an email from an unknown person (from Chennai), Claiming that he now has my Rapid and he needs my ID proof and NOC so that he can sell via cars 24. I was surprised and called him up to check on how he got my email for which he replied he got the details from Gurudev motors since they have the car's service history.

He was saying only if i gave the proof, he can transfer the ownership to the next owner. Else, if he is to give this to some other 3rd party dealer, there is no guarantee the car would be transferred in new owners name

I checked the details in Vaahan site and it indeed reflects our name as the owner of the car.

Now my Dilemma is:
A car that is declared a Total loss with Insurance company honoring the IDV, is still running in our name! Without this background, doesn't this look like a Insurance cheating case ?

Secondly, i have no idea what happened to that car for last 4 years, who was using it or what purpose was it being used for! This is dawning on me in 2019 all of a sudden

I denied giving any proof or NOC stating that, i have email from Insurance company honoring this claim, and i dont think it is legally right! The Guy who spoke to me said he runs a S/W firm and was willing to let me know if he has found any other work around

I am both curious and perplexed about this entire saga. Any expert help would be greatly appreciated
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Old 26th March 2019, 17:00   #2
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Default re: Car declared total loss 4 years back, but is still running in our name!

Do you have the documents relating to the disposal of the car, the auction process etc?

You could

1: Check for any traffic fines and sign the papers off - Car will be totally off your hands, the innocent buyer is off the hook.

2: Make an affidavit declaring what has happened, make copies of the documents, notarise them and send these off to the RTO, cc insurance company and watch the ensuring mayhem. However the poor current owner will have an unsaleable asset.

I would go for 1 considering the car owner is a victim, if it is the scrap dealer or a car dealer, then look at 2
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Old 26th March 2019, 17:07   #3
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Default re: Car declared total loss 4 years back, but is still running in our name!

Interesting.. the S/w firm owner using your car never knew that the car belonged to him?

Did he rent the car? Did he lease the car? Did he buy the car (as second hand maybe)?

I would assume he bought the car, since he was planning to sell the car at Cars24 now.

If he bought the car, did he not have an RC copy with him all these years? How did he 'buy' the car if the car was not registered to his name at all. Did he never ask for an RC copy with the seller?

Infact, I would think the car is just not his and he should not be selling the car. I think he is just stuck with a car and can do nothing with it (but drive around).
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Old 26th March 2019, 17:09   #4
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Default re: Car declared total loss 4 years back, but is still running in our name!

Quote:
Originally Posted by ajmat View Post
I would go for 1 considering the car owner is a victim, if it is the scrap dealer or a car dealer, then look at 2
The current owner was using the car for 4 years without transferring the ownership to himself. I would think he is also guilty.
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Old 26th March 2019, 17:13   #5
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Default re: Car declared total loss 4 years back, but is still running in our name!

Quote:
Originally Posted by ajmat View Post
I would go for 1 considering the car owner is a victim, if it is the scrap dealer or a car dealer, then look at 2
Pretty sure he is trying to sell the car as a single owner, and probably the reason he never reached out till date for RC transfer. Wouldnt Mi10 become a party in this fraud if he were to provide the seller information now?

And if the next owner finds out about the total loss claim and files a complaint - who is responsible? In the current scenario, it is the insurance company, but I assume it will be Mi10 alone solely responsible if he is involved in the sale.

Last edited by CrAzY dRiVeR : 26th March 2019 at 17:15.
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Old 26th March 2019, 17:14   #6
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Default re: Car declared total loss 4 years back, but is still running in our name!

Quote:
Originally Posted by Samurai View Post
The current owner was using the car for 4 years without transferring the ownership to himself. I would think he is also guilty.
Probably, you would be surprised at how many people are ignorant or possible mislead about the paperwork. First question to ask is does he actually have the RC book?
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Old 26th March 2019, 17:35   #7
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Quote:
Originally Posted by ajmat View Post
Do you have the documents relating to the disposal of the car, the auction process etc?

You could

1: Check for any traffic fines and sign the papers off - Car will be totally off your hands, the innocent buyer is off the hook.

2: Make an affidavit declaring what has happened, make copies of the documents, notarise them and send these off to the RTO, cc insurance company and watch the ensuring mayhem. However the poor current owner will have an unsaleable asset.

I would go for 1 considering the car owner is a victim, if it is the scrap dealer or a car dealer, then look at 2
We shifted to new house last year!
Need to dig up my dungeon to see if i still have those documents.

I think First option is a good peaceful way for want of peace of mind. But the catch is cars 24 would probably be giving the Cheque / NeFT in my account! and i would need to transfer that to him



Quote:
Originally Posted by OrangeCar View Post
Interesting.. the S/w firm owner using your car never knew that the car belonged to him?

Did he rent the car? Did he lease the car? Did he buy the car (as second hand maybe)?

I would assume he bought the car, since he was planning to sell the car at Cars24 now.

If he bought the car, did he not have an RC copy with him all these years? How did he 'buy' the car if the car was not registered to his name at all. Did he never ask for an RC copy with the seller?

Infact, I would think the car is just not his and he should not be selling the car. I think he is just stuck with a car and can do nothing with it (but drive around).
From what i hear, he has got this from a second hand car dealer a couple of months back (at least that is what he says). I dont think the RC was cancelled in the first place. Else how would it be possible for someone to sell the car in first place!

Quote:
Originally Posted by Samurai View Post
The current owner was using the car for 4 years without transferring the ownership to himself. I would think he is also guilty.
He is a new owner sir. He says he's been using this for couple of months.

Just read this thread

https://www.team-bhp.com/forum/india...ies-etc-2.html (Getting rid of a Total Loss Car. Paperwork, Insurance formalities etc.)

Will check for Indemnity and Subrogation docs. If i have those, i think i am covered!

Last edited by Samurai : 26th March 2019 at 20:38. Reason: B2B
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Old 26th March 2019, 19:33   #8
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Default re: Car declared total loss 4 years back, but is still running in our name!

I read this thread and I as like Wow, How advanced The Indian insurance industry is.

A couple of queries:
1) When the car was declared a total loss, did you hand over the RC to the Insurance co for cancelling the same? If yes, and even then if the car was reconstructed and sold, the Insurance co will also be at fault.
2) If the RC was cancelled and car was made street ready how was it used on road without a valid RC?

I would suggest to file an FIR with local police station giving all details of the total loss documents. This way you nullify your liability coz any illegal episode with the car and you will be made to stand in front of the cops. You may take the advise of an expert here (read lawyer). Secondly send an application to the insurance co requesting for the proof of RC cancellation. Thirdly raise a grievance with IRDAI detailing the entire episode with the unknown driver supported with the e-mail document.

The foremost priority should be to ensure your indemnity.
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Old 26th March 2019, 19:40   #9
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Default re: Car declared total loss 4 years back, but is still running in our name!

I'm supportive of being humane, but please do whatever is needed to indemnify yourself of liability first. You disposed the car following proper procedure and in good faith, and there's no reason why you should be part of this conversation from a legal perspective.

The current owner needs to sort this out with the dealer he bought this car from, not you.
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Old 26th March 2019, 19:51   #10
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Default re: Car declared total loss 4 years back, but is still running in our name!

Quick question: in such cases, shouldn't Skoda have in their records that this car (basis VIN) has been declared total loss due to flood damage?

So, the scrap dealer (or whoever purchased it for XX) got the car repaired and sold it to someone. That someone now wants to sell it. After using it for four years on your name.

Sorry, but that chap, although having gotten cheated himself, also didn't act fair to you. This is assuming he didn't know the car was flood damaged as total loss. Start with why he didn't transfer - and if he knew the car was declared total loss.

If you are reasonably confident this chap won't mess with your happiness, I strongly recommend dropping an email to IRDAI, RTO and the Insurance company. I'd say Skoda as well but we all know, they're probably worse.

I can't find it now but I recall there was a Getz thread on the forum; a kid from Hyd got a flood damaged total loss Getz from Chennai and got it restored. So, this seems to happen all the time.
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Old 26th March 2019, 20:02   #11
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Default re: Car declared total loss 4 years back, but is still running in our name!

Indemnify yourself in some manner right away. Emails, letters etc to all the insurance people, to cars 24, to the local cops. File an fir or get some sort of record submitted with the police.
All humane consideration will go for a toss if the car kills someone and the current owner finds out that he can easily wash his hands off of the matter.
And I'm pretty sure that he knew the advantage of driving with the rc in someone else's name. Otherwise even one PUC due is more than enough to realize that the car is actually in someone else's name.
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Old 26th March 2019, 20:17   #12
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Default re: Car declared total loss 4 years back, but is still running in our name!

Quote:
Originally Posted by Mi10 View Post
The Agency honored us the IDV value of the car by doing the following:
They Auctioned the car and it fetched XX amount of Rupees
The Remaining YY amount was given by the insurance company to match the IDV
In my opinion, this transaction is "Salvage Loss" and not "Total Loss". Just that the insurance company made you believe that your car was a Total Loss and will be scrapped.

The buyer, repaired it and sold it without bothering to transfer the ownership.

Quote:
Originally Posted by Mi10 View Post
All forms were signed and given to the (Scrap) Dealer from Bangalore who took the car from us. I am not too sure if he gave us an under taking, of transferring the ownership of the vehicle, but what i know is the Insurance company cancelled the License.
Insurance company will cancel the insurance on the car, I don't think that they have the rights to cancel the registration of the car.
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Old 27th March 2019, 09:06   #13
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Default re: Car declared total loss 4 years back, but is still running in our name!

Quote:
Originally Posted by arun_josie View Post
In my opinion, this transaction is "Salvage Loss" and not "Total Loss". Just that the insurance company made you believe that your car was a Total Loss and will be scrapped.

The buyer, repaired it and sold it without bothering to transfer the ownership.

Insurance company will cancel the insurance on the car, I don't think that they have the rights to cancel the registration of the car.
The insurance company will typically collect the original RC of your car as part of the claim settlement documents. They are supposed to submit it to the RTO as part of the total loss process.

Try to put in the claim and also claim your taxes for the vehicle back from the RTO showing the total loss.
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Old 27th March 2019, 09:36   #14
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Default re: Car declared total loss 4 years back, but is still running in our name!

I am sure the current owner bought the car, wittingly or otherwise, and decided to not change the RC so he can sell the car later as single owner only. I wouldn't go out and help this chap as it is his fault for not transferring the car in the first place. If he would have then in all likely hood he would have also got to know about the damage history.

On a lighter note that is one Skoda refusing to die !
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Old 27th March 2019, 09:37   #15
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Default re: Car declared total loss 4 years back, but is still running in our name!

Quote:
Originally Posted by libranof1987 View Post
I can't find it now but I recall there was a Getz thread on the forum; a kid from Hyd got a flood damaged total loss Getz from Chennai and got it restored. So, this seems to happen all the time.
For the benefit of the forum members:

https://www.team-bhp.com/forum/techn...ndai-getz.html (Buying & restoring a Chennai flood-damaged Hyundai Getz!)
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