Here's a warning for consumers who bid for salvage vehicles at scrap auctions
Here's a warning for consumers who bid for salvage vehicles at scrap auctions. While buying such a vehicle make sure that it has a Road Worthiness Certificate (RWC) from the manufacturer, or else the vehicle cannot be driven on the streets.
The matter came to light after the State Consumer Forum rapped the United India Insurance company for auctioning a Tata Indigo for Rs 3.51 lakh without issuing an RWC. The forum has ordered the insurance company to refund the amount with 9% interest and Rs 3,000 as a cost of compensation.
ADVERTISEMENT
In June 2005, the insurance company held a public auction where Ravindra Kalal, a resident of Pune, bought the car for Rs. 3.51 lakh. But the RTO refused registration of the car, as it did not have an RWC and hence Kalal could not use it anymore.
Kalal approached the district consumer forum in 2007, but his complaint was dismissed after the insurance company argued in the forum that the car was sold as salvage on 'as is, where is basis', in a public auction. It was a scrap vehicle, and the company was not under obligation to issue sale certificate and RWC.
Dejected Kalal approached the state consumer commission in February 2007. The state consumer commission observed that the terms and conditions in the tender floated by United Insurance for the sale of the car clearly stated that the vehicle was not sold as scrap but for reuse.
The court held that suppression of the fact with regards to the certificate is an unfair trade practice, and ruled in favour of refunding the entire amount with interest.
When contacted, A S Vidyarthi, advocate for the insurance company told MiD DAY, 'The registration is not the responsibility of the insurance company, and if the court has considered it and asked us to repay the amount then the car also ought to have been returned. We may file an appeal in the National Consumer commission in this regard.'
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
