Until now, the process of selling a car or a bike of the deceased was cumbersome. The family member had to get the ownership transferred in the name of the legal heir and comply with the procedures that required frequent visits to different offices
Until now, the process of selling a car or a bike of the deceased was cumbersome. The family member had to get the ownership transferred in the name of the legal heir and comply with the procedures that required frequent visits to different offices.
The procedure could also differ from one Regional Transport Office to another. If the cities of the deceased and legal heirs are different, it could make the process even more challenging.
NOMINATION FOR VEHICLES
All this is set to change. The Ministry of Road Transport and Highways has recently notified changes to the Central Motor Vehicles Rules, 1989.
The vehicle owner can now nominate a person in the registration certificate. In the case of the death of the vehicle owner, the nominee can get the ownership transferred in his or her name.
The owner can specify the nominee when buying the car as well as after purchase. When mentioning the nominee, the owner must submit proof of the identity.
PROCEDURE
On the death of the owner, the nominee will need to inform the registering authority of the demise within 30 days. If this is done, the nominee can use the vehicle like he or she is the owner for three months
The nominee will also need to submit Form 31 within three months of the death of the owner to transfer the ownership in his or her name.
The owner can also change the nominee in case of divorce, division of property, or transfer of assets – not when selling the vehicle.
If the car is on loan, the nominee will first need to pay the lender. The transfer will happen after the lender gives a no-objection certificate.
The nomination facility should make the transfer of vehicles easier on the death of the owner. It should also be able to save the procedural hassle
