Necessity of certificate of salvage title; request for bureau to
determine fair market value; required application for salvage title
by insurance company
Sec. 3. (a) A certificate of salvage title is required for a motor
vehicle, motorcycle, semitrailer, or recreational vehicle that meets
any of the following criteria:
(1) An insurance company has determined that it is
economically impractical to repair the wrecked or damaged
motor vehicle, motorcycle, semitrailer, or recreational vehicle
and has made an agreed settlement with the insured or claimant.
(2) If the owner of the vehicle is a business that insures its own
vehicles or an insurance company, the cost of repairing the
wrecked or damaged motor vehicle, motorcycle, semitrailer, or
recreational vehicle exceeds seventy percent (70%) of the fair
market value immediately before the motor vehicle, motorcycle,
semitrailer, or recreational vehicle was wrecked or damaged.
(3) The motor vehicle is a flood damaged vehicle.
(b) For the purposes of this section, the bureau shall, upon
request, determine the fair market value of a wrecked or damaged
motor vehicle, motorcycle, semitrailer, or recreational vehicle if the
fair market value cannot be determined from the source referred to
in section 2(1) of this chapter.
(c) An insurance company must apply for a salvage title for any
vehicle that has sustained damages of seventy percent (70%) or more
of the fair market value immediately before the motor vehicle,
motorcycle, semitrailer, or recreational vehicle was wrecked or
damaged if the vehicle meets the criteria of subsection (a)(1).
As added by P.L.2-1991, SEC.10. Amended by P.L.59-1998, SEC.4.
Last modified: May 27, 2006