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Tareeq (Engg)     04 February 2010

Motor Vehicle Insurance Claim

I had met with an RTA after that I submiited my Vehicle insurance claim form, The Quatation received by the Approved repair work shop was exceeding 75% of the IDV of vehicle and hence the vehicle was declared to be Constructive Total Loss where the Insurance company informed me that I will be paid off with the IDV insured, This was a Brand New vehicle and was used for a period of 6 months only, In this regard can anybody inform me what happens to the Road Tax that I have paid to the Government?



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 6 Replies

Swami Sadashiva Brahmendra Sar (Nil)     04 February 2010

Only value of vehicle is covered, not the road tax paid to the government. Please check  your insurance  policy.

sunil pagare (lawyer)     04 February 2010

Tripathiji is right,only vehicle's value is covered & not the road tax.Road tax is recovered by govt. for one time15 yrs.

Sanjay Krishnan (Lawyer)     04 February 2010

I agree with Mr. Tripati and sunil with regard the insurance claim. So far as the tax is concern you may get refund of the balance tax on an application.to the Concern RTO.

Tareeq (Engg)     04 February 2010

Thanks for the reply, The RTO has agreed to refund the roadtax after deducting the tax on prorata basis for the period used and cancel the registration Certificate, now the concern is the Insurance Co. says that Transfering the Registration  my claim will not be settled, Kindly suggest me how should I proceed, Is there any valid MV act?

Tareeq (Engg)     05 February 2010

Thanks for the reply, The RTO has agreed to refund the roadtax after deducting the tax on prorata basis for the period used and cancel the Registration Certificate, the concern now is that the Insurance Co. says that without transfering the registration to Insurance Co. my claim will not be settled, and also the Insurance Co. is not ready to compensate the tax portion, kindly Suggest how I shaould proceed, what actions I have to take, is ther any MV act?

Pankaj Kumar (Legal Executive)     05 February 2010

Insurance does not cover road tax. Compensation is just to compensate the loss occured due to damage to vehicle. Onece vehicle is declared as total loss, you will get the entire IDV after deduction of depreciation. And once you get the entire amount the vehicle will get transferred to Insurance company. The reason being that you are indemnified against loss and you cannot reap benefit out of it. If you want the salvage then the company will calculate compensation on non standard basis.


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