Second-Hand Car Insurance Will Require NOC — Theft Deterrent Or Bureaucratic Nightmare?

Going forward, insurers will be able to issue new policies for second-hand vehicles, mainly high-end cars, after obtaining a no-objection certificate (NOC) from the transport authorities.

The Delhi Police held a meeting with the insurance companies in the capital last week at the Delhi Police Headquarters to discuss the new initiative to check the activities of stolen vehicles and then being insured.

The Delhi Police said, "They discussed the frequent theft and resale of high-end vehicles, apart from other categories of vehicles, by some inter-state auto-lifters' gangs, including the infamous Mewati gang,"

They also decided to stop reselling of these cars, comprising Fortuner, BMW, Audi, Mercedes and Honda City, among others, which has risen as a major hurdle for the Delhi Police, as some gangs in Delhi have preferred to high-tech ways of theft.

The gangs replace the engine and chassis number of the stolen vehicles with those of insured vehicles, which the gang buy it under a 'total loss' scheme.

The cars are then resold for a significant amount in Delhi-NCR, largely in Haryana's Gurugram, Sonepat and Jhajjar, and Meerut in Uttar Pradesh, after placing the number plate of insured vehicles to give them a genuine appearance, so as to evade the police.