Illegal resale of total loss vehicles in Kerala: MVD warns RC owners of liability

Vaikom, Kerala: The Motor Vehicles Department has issued a strict warning to owners of completely damaged (total loss) vehicles, stating that they must cancel their vehicle registration. The notice comes after authorities found that some total loss vehicles were being illegally repaired and sold in the market without cancelling their registration.

If such vehicles are used to commit crimes or violate traffic laws, the RC (Registration Certificate) owner will be held liable. 

A vehicle is considered a total loss when the amount an insurance company must pay to restore a damaged vehicle exceeds its market value. Typically, vehicles are considered a total loss when repairing it requires 75 per cent of its current value. Such vehicles must be scrapped, as per the law.

Some insurance companies, with help from private individuals, buy the RC book and other documents from the owner and sell the vehicles through public auctions or online platforms. Buyers are often unaware of the vehicle’s history. Anyone purchasing a second-hand vehicle must verify the full insurance details before buying.

Full insurance details are not readily available at RTO offices or on the Parivahan website. Once this information is uploaded to Parivahan, both authorities and the public will be able to access. Officials noted that legal amendments to the Motor Vehicles Act are needed to enforce this effectively.

Buyers of second-hand vehicles must submit an application to transfer the insurance within 14 days of changing the RC ownership. Otherwise, the chances of receiving an insurance claim may be reduced, warned Motor Vehicles Department officials.