I doubt the truecrypt program itself does; this is something the device's firmware in conjunction with the OS usually handle. If there are user visible bad sectors the drive (HDD or SSD) is pretty much done and should be RMAd/destroyed. Drives have a reserve pool of sectors; when the firmware identifies a weak/failed sector it's added to a black list of places not to store data and a reserve sector is used in its place. When that pool runs out or the firmware is unable to perform this function for whatever reason is when the user begins to see bad sectors, so the drive is usually on its last legs at that point.