Condemned Vehicles Running back on roads - Is it legal?

[gayanath]

I saw a known car that had condemned a few months ago due to a head-on collision being advertised recently on a popular car site with a high price tag and mentioning that the vehicle in in mint condition. 😃 

If something condemned, (that means, beyond the repair, isn't that right?) then how it could be released by the insurance company to use again? Is it legal? 

[iRage]

On 10/28/2021 at 9:37 PM, gayanath said:

If something condemned, (that means, beyond the repair, isn't that right?) then how it could be released by the insurance company to use again? Is it legal? 

There is a difference between technically condemned and what is condemend in terms of insurance.

From an insurance perspective, condemned means the repair cost of the vehicle exceeds the fair market value of the vehicle (i.e. it costs more to repair it than to buy a car of equal type OR its value).

From a technical stand point, condemed means the car cannot be repaired to a level of safety and operation that is required for the car to function.

In many countries (UK, Japan, Aus), you can find condemned (from an insurance perspective) cars that one can buy at a low price and make it roadworthy again. Cars that are condemed and regarded as scarpped cars can only be purchased for parts/components.

Sadly in Sri Lanka there is no mechanism to properly regulate and distinguish between insurance condemnation and technical condemnation.