In a country where writing a ‘will’is considered an unpleasant task and often abhorred, bequeathing a vehicle to one’s kith and kin would probably be the last thing on one's mind.

In most cases, the focus is often on apportioning immovable assets like land and property. But even cars and vehicles need to be clearly earmarked to heirs, lest it creates legal problems later.

In fact, those in the know of the Motor Vehicles Act say that there is no provision for nomination in the Act, but the vehicle, just as any other movable asset, can be transferred to the heir on production of the legal heir certificate and a ‘no objection certificate' from other members of the family.

Citing Rule 56 of the Central Motor Vehicle Rules, P Mohankumar, Principal Officer and Managing Director of Link-K Insurance Broker Co Pvt Ltd, said the name transfer should be effected within 30 days of the death of the owner. Further, the Rule mandates that the person who is using the vehicle of the deceased must inform the Registering Authority about his/her intention to use the vehicle.

Vehicle insurance

Only after effecting the change in name does the question of insurance arise. The owner should communicate the change to the insurance company as well.

Disputes invariably arise when the vehicle is in the name of one person and the vehicle insurance in some other name (the previous owner/the deceased person), Mohankumar explained, and admitted that most people fail to effect the name transfer within the mandated 30 days.

“In such situations, should the vehicle meet with an accident, third party claims will be settled on production of the Registration Certificate (RC) and the owner’s (original) driving licence, but the own damage portion will not be settled,” the MD of Link-K clarified.

Stressing the need for an amendment in the Motor Vehicles Act to include a provision for nomination, K Kathirmathiyon, Secretary, Coimbatore Consumer Cause (CCC), said, “If the Motor Vehicle Rule is followed in letter and spirit, vehicles in the name of deceased persons should not ply on the roads. But in our own State, ex-Chief Minister J Jayalalithaa’s vehicle continued to ply after her demise and no questions were asked. How does one check every case?” he asked, and pointed out that differences of opinion amongst family members after the death of the head of the family often led to complications and unnecessary quarrel.

“Banks, insurance companies and mutual funds have now made it mandatory to share nominee details. Why can’t this be done for motor vehicles as well?” the CCC Secretary asked, suggesting the need for such a provision in the Act. Mohankumar said the issue at present is not name change, but renewal of insurance and who should bear this expense.

“The affluent class often gives away high-end vehicles as gift when they marry off their girl. And they end up bearing the cost of the vehicle insurance and its renewal as well, ” he said, in a lighter vein.

Reports reveal that close to 35 per cent of all vehicles in the country ply without the mandatory insurance cover. Does it include vehicles in the names of the deceased as well? This remains to be looked into.

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