Page 51 - Insurance Times August 2019

Circular

IRDAI Circular

Misuse of Total Loss Accident Vehicle Extension of timelines to comply with
Documents over Stolen Vehicles the Guidelines on Standards and

Ref. No:IRDAI/NL/CIR/MOTOD/118/07/2019 Benchmarks for the Hospitals in the
Date:26-07-2019 Provider Network

1. It has come to the notice of Authority that in case of Ref. No:IRDAI/HLT/GDL/CIR/122/07/2019
Total Loss (TL) of the vehicle, salvage of the vehicle is
being sold to scrap dealers without cancelling Date:26-07-2019
Certificate of Registration (RC) of the vehicle.
1. Reference is invited to IRDAI Circular ref IRDA/HLT/GDL/
2. It has been informed by the Law Enforcement
Authorities that documents pertaining to such vehicles CIR/114/07/2018 dated 27th July, 2018 on the captioned
are being misused like giving new identity to the stolen subject.
vehicles by forging engine number and chassis number 2. In partial modification of the captioned guidelines,
of destroyed vehicles under TL claims. taking into consideration the status of the compliance

3. As per Section 55 of Motor Vehicle Act 1988, by network providers, the timelines for complying with
(1) If a motor vehicle has been destroyed or has been the standards and benchmarks specified at Clause (a)
rendered permanently incapable of use, the owner (i) and (ii) of the within referred Circular dated 27th July,
shall, within fourteen days or as soon as may be, 2018 stands extended for a further period of twelve
report the fact to the registering authority within months for all the existing network providers.
whose jurisdiction he has the residence or place of
business where the vehicle is normally kept, as the 3. The norms specified in the within referred circular
dated 27th July, 2018 shall continue to be applicable for
case may be, and shall forward to the authority the
certificate of registration of the vehicle. all the new entrants and there is no change in other
norms specified therein.
(2) The registering authority shall, if it is the original
registering authority, cancel the registration and 4. This Circular is issued in terms of Regulation 31(e) of
the certificate of registration, or, if it is not, shall the IRDAI (Health Insurance) Regulations 2016.
forward the report and the certificate of 5. This Circular shall be applicable with immediate effect.
registration to the original registering authority and
that authority shall cancel the registration. 6. The above instruction is subject to the directions of the
Hon’ble Delhi High Court in its order dated 29th May
4. In view of the above, all insurers are advised to ensure
cancellation of Certificate of Registration (RC) of the 2019 / 31st May 2019, in respect of W.P(C) 6237 of
vehicle in case of total loss claim settlement. 2019, which needs to be complied with till further
orders of the Hon’ble Court.
(Yegnapriya Bharath)
Chief General Manager (NL) General Manager (Health)

The Insurance Times, August 2019 51