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Removal of Hypothecation.

Discussion in 'Insurance & Loan Reviews' started by aashish_19, Apr 15, 2015.

  1. aashish_19

    aashish_19 Amatore

    Messages:
    198
    Noida
    Grande Punto 1.2
    Hi,

    I got NOC from my Bank and all respective form for RTO and Insurance update.

    Till now, my Insurance company(Future Generali) has responded and removed the Hypothecation from my insurance paper without asking for RC copy :) and just by email it was done.

    Though i don't want to sell my car for next 3-4 yrs and my only concern was from Insurance account and that has been taken care.

    Please advice, if is it really necessary to get removed from RC paper too as per my ease pointed above.
  2. ghodlur

    ghodlur Esperto

    Messages:
    2,325
    Thane
    Really surprised as to how did the Insurance company remove the hypothecation on the Insurance even when the same is not done on the RC. First and foremost apply for removing the hypothecation to the RTO with all necessary documents. Since you have the necessary forms with you, the entire process should not take more than 30-40 days and the new RC will be mailed to you.
    asimpleson likes this.
  3. aashish_19

    aashish_19 Amatore

    Messages:
    198
    Noida
    Grande Punto 1.2
    i don't find it so surprise as IMO, the Insurance company is working independent of RTO and if my Bank issue NOC respectively for RTO and Insurance company then i don't think that insurance company should care about RC update.

    Its just, if in future something happens to my car, then the insurance amount will be directly reimburse to me in the very first step and not to my bank. If i didn't removed hypothecation from my Insurance paper then it might take lengthy process to get the reimbursement or insurance amount as the amount will first route to bank and then to me.

    Anyways, i will try to get it done from RC too by this month as we never know what govt/Insurance rule can surprise us.
  4. neelchak

    neelchak Timido

    Messages:
    9
    Mumbai
    Can anyone help me regarding hypothecation removal.
    My car is registered in Mumbai - MH1. However, currently I am in Delhi.

    1. Is there a way I can get the hypothecation removed sitting in Delhi through some one else? Or do I have to visit the RTO in person?
    2. Reliance Commerical, my lender is going to give me one copy of NOC, one copy of Form 35. Is that sufficient for hypothecation removal?
    3. Is address proof of Mumbai needed? I dont reside there currently and dont have one as well.
  5. kk27

    kk27 Amatore

    Messages:
    202
    Kandivali - Mumbai
    Kandivali - Mumbai
    Fiat Enthusiast
    Hmm... this can be a bit of an issue but nothing that cannot be done.

    You'll have to get another NOC from the Mumbai RTO for transfer of the vehicle registration to Delhi RTO. Though you might face the Road Tax charges in Delhi is that is done.
  6. vinit

    vinit Amatore

    Messages:
    184
    Mumbai
    Linea 1.3
    I think, as per the new RTO rules, the car owner need to be present at the RTO office to complete the procedure.

    Also Non availability of Mumbai address proof may impose a problem.
    neelchak likes this.
  7. neelchak

    neelchak Timido

    Messages:
    9
    Mumbai
    Thanks Vinit, that poses a serious problem for me. Is there any alternative? What happens if I ignore removing hypothecation and do it only later when I am going to sell off the car
  8. vinit

    vinit Amatore

    Messages:
    184
    Mumbai
    Linea 1.3
    Well, if you can get a buyer who is ready to get these formalities done after buying your car, then that will be a great situation for you. You just need to handover all these NOCs and forms to him as part of the sale. It may happen that the buyer may negotiate further (considering that he has to face all these hassles now) but it saves your precious time and reduces your headache. :)
    neelchak likes this.

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