News | Regulation

Changes in motor vehicles rules will now ease transfer of ownership of vehicle after death of owner

MAS Team 03 May 2021
0
SHARE

The Ministry of Road Transport and Highways has notified certain changes in the Central Motor Vehicles Rules, 1989 to facilitate the owner of a vehicle for nominating a person in the registration certificate, which would help the motor vehicle to be registered or transferred in the name of the nominee, in case of death of the owner, as reported by The Economic Times. 
 
Now, the owner can put the name of the nominee at the time of registration of the vehicles and can also add it later through an online application. The process is otherwise cumbersome and non-uniform across the country. According to the notified rules, the owner of a vehicle has to submit proof of the identity of the nominee, in case the nominee is mentioned. 
 
"Where the owner of a motor vehicle dies, the person nominated by the vehicle owner in the certificate of registration or the person succeeding to the possession of the vehicle, as the case may be, may for a period of three months from the death of the owner of the motor vehicle, use the vehicle as if it has been transferred to him, Provided that such person has, within thirty days of the death of the owner, informed the registering authority of the occurrence of the death of the owner and of his own intention to use the vehicle," the notification said. It further said the nominee or person succeeding to the possession of the vehicle shall apply in Form 31 within the period of three months from the death of the owner of the motor vehicle, to the registering authority for the transfer of ownership of the vehicle in his name. For change in nominee in case of contingencies like divorce or division of property, the owner may change the nomination with an agreed Standard Operating Procedure (SOP), it added. 
 
Currently, in case of death of a registered owner of a vehicle, the procedure of transferring the vehicle to a nominee requires complying with a raft of procedures and frequent visits to different offices
. 
Under the proposed amendment, "an additional clause is proposed to be inserted wherein 'proof of identity of nominee, if any' to enable the owner to nominate anyone to be the legal heir of the vehicle in case of death," it had said. For transferring the vehicle to the legal heir in case no nominee has been specified by the owner, it is proposed that an additional clause may be inserted to enable the owner to nominate a nominee. In case where the nominee is already specified, the vehicle will be transferred in his/her name.
 

SHARE

User

  Loading...
  Loading...

To continue


Please
Sign Up or Sign In
with

Email

We are listening!

Solve the equation and enter in the Captcha field.

Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
img
Debashis Basu
Founder