After the rider dies what's next?

[Rain1407]

Not sure if there is a similar thread but a colleague asked me this question this afternoon:

 

What happens to the bike if lets say the owner (*Alex) dies? If the bike is still under 4 year hire purchase & *Jane is the guarantor?

 

I'm not sure about the answer

 

*Names are just fictional...

[ladder4949]

I suspect the shop will take it as bad debt

[Rain1407]

Thats it? So who will settle the remaining "loan"?

[ladder4949]

Thats why its called bad debt.. A debt that has gone bad = loss

[stanco]

I am not too sure too, but this is what I THINK

 

say if the owner was dead in an accident involving with the motorbike, either LLST take it as bad debts or "force" the guarantor to pay. if not prepared to take it as a loss like what ladder4949 had said. afterall, business will make certain percentage of provision for their debtors 1.

 

But if the owner died due to other causes, motorbike is in good condition, i think the shop has the right to take back the vehicle and sell it as 2nd hand to minimize their losses.

[Rain1407]

Hmmm, i think what u guys mention may make sense. Coz we are too preoccupied with buying a bike, settling it's instalments, pimp our rides, renewing road taxes & season parking that we might overlook this matter. I mean this incident could happen to anyone... I just hope that someone senior in this forum could clear this.

 

I'd been riding for quite sometime yet a simple question from a P-plater struck me like a lightning....

[aeX]

Not sure if there is a similar thread but a colleague asked me this question this afternoon:

 

What happens to the bike if lets say the owner (*Alex) dies? If the bike is still under 4 year hire purchase & *Jane is the guarantor?

 

I'm not sure about the answer

 

*Names are just fictional...

 

Bike goes to subrider if there is no subrider most prob NOK (i.e wife).

 

if subrider wanna sell the bike... he need to approach the Insolvency and Public Trustee Office and get a transfer form from LTA.

 

http://app.minlaw.gov.sg/ipto/PublicTrustee.asp?pg=3F3B303F1D000906030A

 

u can then transfer the bike to the NOK... then to the buyer (double transfer)

[Demon]

Bike goes to subrider if there is no subrider most prob NOK (i.e wife).

 

 

What has the sub-rider got to do with this ?

 

You are like saying when a property owner dies, the house goes to the tenant

 

[omarmukthar]

Bike goes to subrider if there is no subrider most prob NOK (i.e wife).

 

if subrider wanna sell the bike... he need to approach the Insolvency and Public Trustee Office and get a transfer form from LTA.

 

http://app.minlaw.gov.sg/ipto/PublicTrustee.asp?pg=3F3B303F1D000906030A

 

u can then transfer the bike to the NOK... then to the buyer (double transfer)

 

plz dun get me wrong,i tink the ts likes to know what will be done from the part of the bikeshop which is still under loan..if the bike is fully paid up,the NOK can request for ownership to sell it away or keep it but what happens if under hire purchase.this is a qns in my mind for quite some time..

[Demon]

what happens if under hire purchase.this is a qns in my mind for quite some time..

 

I think is liddat :

 

In the event the Hirer has passed away, there are two alternatives :

 

1. The Hirer's representative can obtain a Grant of Probate, and the rights, title and interest will be transferred to the representative who will assume responsibilities of the Hirer.

 

2. If there is no one taking over the responsibilities of the Hirer, and after successive defaults of installments, the bank can repossess the vehicle and suck thumb, unless there is the guarantor who will be legally obligated to make good any outstanding payments owed by the Hirer.

 

[sICkbOi-dOt-cOm]

As it is still under the bikes name.. Ultimately the shop owns it

[Rain1407]

So in a nutshell, if the bike :

 

1) Is fully paid : Transfer to NOK like what Alex mentioned.

 

2) Still under hire : Bike shop suck thumb, redeem back the bike, bike shop settles the remaining loans & sells it away?

 

So if it falls under 2nd category, Jane does not have to do anything? Is my simplified understanding correct?

[Demon]

2) Still under hire : Bike shop suck thumb, redeem back the bike, bike shop settles the remaining loans & sells it away?

 

So if it falls under 2nd category, Jane does not have to do anything? Is my simplified understanding correct?

 

If Jane is the guarantor, Tarzan will help

 

 

2. If there is no one taking over the responsibilities of the Hirer, and after successive defaults of installments, the bank can repossess the vehicle and suck thumb, unless there is the guarantor who will be legally obligated to make good any outstanding payments owed by the Hirer.

 

[Rain1407]

Tarzan will help

 

Aiyoh.....

[2_wheeler]

When you buy a bike under installment, you are actually taking a loan from the finance company to pay for the bike. The bike shop itself can be the finance company (if they are licensed by MAS) or they tied up with a financial company to lend you the money.

 

In the event of Alex (the borrower) Premature Death, Jane (the guarantor) will have to continue paying of the outstanding loan. Jane can discuss with Alex’s family to settle the loan.

 

Or worst, what happen if Alex is Permanent Total Disable?

 

 

Alex has 3 options to protect his guarantor and his family:

 

1. Take up a Personal Accident policy (MUST include motorcycling) - In the event of accidental Death or Permanent Total Disable, the Personal Accident policy will pay the amount to Alex or his family. The family can use this money the settle the outstanding loan and even the hospital bills.

 

 

2. Take up a Life Insurance Policy – In the event of Death (including Accidental) or Permanent Total Disable, the Life Insurance will pay the amount to Alex or his family. The family can use this money the settle the outstanding loan and even the hospital bills.

 

 

3. Do not take up any of the above policies - let the guarantor and Alex’s family hander it.

Edited April 26, 2009 by 2_wheeler

[Rain1407]

I see, so Jane will still be hunted by the bike shop to settle the remaining loan UNLESS Alex took up one of the above mentioned policies. Thanks for your detailed explanation bro. Now I can finally advise my colleague...

[starr]

wow. great topic to discuss on. whatever it is, ride safely. think logically. =)

[master_raven]

like wad ah-loong do la.. u borrow money from ah loong san.. u die in a event of wad ever cause .. who's gonna pay the loan ..? of cus the ah loong will come find the guaruntor la of worst still come straight to ur family members? so pray hard be4 u ride each day

[Rain1407]

so pray hard be4 u ride each day

 

Goes to all riders/drivers! Be safe!

[Team_Commander]

what if the bike is in a totally scraped condition???

 

the shop scrap it and then use the money to pay the remainder??

 

i think the if the bike has minimal damages and the owner dies, the sub rider(usually the guarantor) will have to pay the rest of the loan...

 

the shops would usually state conditions to protect themselves...