Vehicle Completely Damaged. Ensure the RC is Cancelled within 14 DaysPosted on: June 3, 2020, by : Rakesh Sashmal
In case of an accident, wherein the complete repairment expense is greater than 75% of the insured declared value, a claim in regards to the same can be made. However, if you intend to sell your damaged vehicles it is important to consider certain aspects.
As per the Insurance Regulatory and Development Authority of India, it has been observed that the vehicle-related documents are misused while selling the damaged vehicle. The documents are being used to create fake identities of the stolen vehicles leading problems for the real owners of the vehicle on whose name the vehicle has been registered in the past.
To avoid getting into unnecessary troubles, in case of a vehicle stolen/ damaged and is beyond use the owner of the vehicle under whose name the registration of the vehicle is done need to report within 14 days to the respective registering authority and the certificate of registration (RC) should also be forwarded to the authority. The original authority will likewise cancel the RC or will further forward the RC to the original registering authority.
As per the directions of IRDA the policyholders to ensure that the RC is cancelled to file a claim against total loss or to settle the claim further. To avoid any legal trouble in the future, ensure that the RC is cancelled.