[JardaniJovonov]

Hi all,

I currently own a car, having IDV value of around 20 lakhs. Due to an unfortunate accident, the insurance claim (with a private insurer) is heading towards a Total Loss, as service centre gave a repair estimate of around 14 lakhs. The insurance company is saying that this will be an NOS (Net of Salvage) settlement, where they will auction off the car to highest bidder, who will most likely repair the car and sell it off. The balance amount will be transferred to me from Insurance company.

The Insurance company is saying that I will have to hand over original RC and sign Form 29,30 for eventual transfer of ownership, which will not be immediate. To make the matter worse, the car is having BH-series registration.

I went through many total loss threads on team-bhp like https://www.team-bhp.com/forum/india...oss-claim.html (The tale of a Total Loss Claim).

I also went through https://www.team-bhp.com/forum/india...-needed-6.html (Car sold to buyer who resells it without ownership transfer, now totalled. Advice needed!).

Based on above 2 threads and some of the legal forums, I understand that unless the ownership is transferred and reflected on Parivahan portal, for all legal purposes, the original owner (i.e. me) is liable. Even the documents like delivery note, affidavits, don't hold in court of law.

There were some suggestion in above threads to make the transfer myself, but given its a BH-series registration, I doubt the auction buyer will qualify for it (the new owner must be an employee of a company having offices in equal to or more than 4 states), so I cant even do that.

Now I am in a soup, and don't see any way out.

Can esteemed members of this forum please suggest any ways to safeguard myself or any other way out?

[Turbanator]

Originally Posted by JardaniJovonov

The Insurance company is saying that I will have to hand over original RC and sign Form 29,30 for eventual transfer of ownership, which will not be immediate. To make the matter worse, the car is having BH-series registration.

I don't think this is a cause of worry. It is pretty standard procedure: Insurance will sell it to wholesalers who will either repair your car and sell it or resell it to people who stock such cars for parts. Either way, it's a documented process; you are not selling to any individual directly.

Besides, how can a third owner renew BH ownership without getting it transferred first to himself? I think, these days, OTP is sent for all such renewals or transfers.

[JardaniJovonov]

Originally Posted by Turbanator

Besides, how can a third owner renew BH ownership without getting it transferred first to himself? I think, these days, OTP is sent for all such renewals or transfers.

Thanks, Turbanator for the quick response.

In an ideal circumstance, I agree, that this (BH-series) would actually motivate the new owner to make the RC transfer sooner.
But on the other hand, I am worried that whole-seller would be even more motivated to sell without initiating the transfer of RC, due to difficulty of finding BH-series eligible buyer.

And if that happens (whole-seller selling without transferring), and the next buyer cant even renew the registration, what will happen to the RC? (since next 2 years of road tax is not paid?)
Does the RC stand void? or will there be penalties attached to this RC, and therefore I am liable to pay those, since on paper, I am the owner?

[Turbanator]

Originally Posted by JardaniJovonov

T
But on the other hand, I am worried that whole-seller would be even more motivated to sell without initiating the transfer of RC, due to difficulty of finding BH-series eligible buyer.

I understand your frustration as you are considering worst-case scenarios. Ideally, Insurance should get the car transferred to their names. This is fundamentally so wrong, and with that ruling, everyone gets worried.

In your case, since Insurance paid you out and it is all documented, I won't worry. Give the vehicle to them and move on. What they do is their own or that of whoever purchased it.

Remember, your car is a total loss, implying something serious happened. So there are a lot of assumptions that you are making. Somethings best left to destiny perhaps, you (or anyone else using that car) walked out without getting hurt (I assume) so, just Thank God and buy a new car with insurance money

[steadfast]

IMO, You should get a letter of indemnification from your insurer that any liability post handover of vehicle will not be yours and you should actually sign off any forms one hand and take this letter second hand. Please check if a BH series vehicle can be registered as a normal number in state to be transferred.

[abaliga]

The process of transferring vehicles in our country is a mess! It hardly protects sellers, this is exactly why I chose to do the transfer myself when selling a vehicle and I do not prefer selling it to a dealer. In your case it is hard to get a handle of the process, the best you can do is document everything and stay in touch with the buyer, that is if the Insurance company is willing to share the buyer/scrap dealer details, Our government has to introduce an interim ownership for qualified dealers, scrap dealers so as to rid the liability of original owners, this is a grey area that needs to be addressed at the earliest.

[ghodlur]

Originally Posted by JardaniJovonov

Hi all,

I currently own a car, having IDV value of around 20 lakhs. Due to an unfortunate accident, the insurance claim (with a private insurer) is heading towards a Total Loss, as service centre gave a repair estimate of around 14 lakhs. The insurance company is saying that this will be an NOS (Net of Salvage) settlement, where they will auction off the car to highest bidder, who will most likely repair the car and sell it off. The balance amount will be transferred to me from Insurance company.

The Insurance company is saying that I will have to hand over original RC and sign Form 29,30 for eventual transfer of ownership, which will not be immediate. To make the matter worse, the car is having BH-series registration.

Sorry to know your loss.

AFAIK in case of total loss when the RC is handed over to the Insurance co, they usually cancel the RC irrespective of whether they have to sell it to a new owner or salvage. I am not sure why the Insurance co is asking for Form 29, 30. If the RC is cancelled, the vehicle has to be registered freshly either BH or non BH type. So it should not matter to you how the future registration happens. All you need to do is get the confirmation from the Insurance co that the RC is cancelled and subsequently it reflects on the Parivahan or any other portal. If the Insurance co starts playing bad, raise it with their ombudsman or Bima Bharosa website with IRDAI. Also ask the Insurance co where in the Insurance policy issued is it mentioned that the Forms 29, 30 need to be signed in case of total loss, if they have separate T&Cs for total loss ask them to share.

In my opinion you need not get stressed of BH registration transfer.

Edit: Updated the post with Sec 55 of MV act reg the Cancellation of RC.

Section 55 in The Motor Vehicles Act, 1988
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.
[(5A) If any registering authority or other prescribed authority has reason to believe that any motor vehicle within its jurisdiction has been used in the commission of an offence punishable under section 199A, the authority may, after giving the owner an opportunity of making a representation in writing, cancel the certificate of registration of the vehicle for a period of one year:
Provided that the owner of the motor vehicle may apply for fresh registration in accordance with the provisions of section 40 and section 41.]
(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 of 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 sections 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.

[ruskinash]

Originally Posted by Turbanator

I think, these days, OTP is sent for all such renewals or transfers.

Nope. All you need is an original RC, copy of insurance, PUC, and signatures on the forms. All of these can be faked and the vehicle transferred without you even knowing.
I went through a sale recently and was wondering the same. I also wonder if the RTO verifies these documents for authenticity. The least they could do is call the owner and corroborate if a transfer is being initiated.

[sid18]

I own a BH series vehicle, and to my knowledge, while selling it to someone not eligible for a BH registration, he/she needs to re-register it with a regular number and pay the life time tax prorata basis. This is the same case for transferring a car from one state to another and registering it in the new state, isn't it?