[thanixravindran]

Originally Posted by androdev

This is a very bad idea. You are liable for all 3rd party damages/claims as long as the car is in your name. Even after selling your car, you must always make sure there is a valid 3rd party insurance on the vehicle till transfer is completed. If the new buyer or dealer doesn’t renew, you should buy 3rd party cover at your own cost.

OP is lucky that person A or B renewed the insurance. He has the luxury of options now.

Originally Posted by m8002?

In my case, I had sold it to TruValue and they had a ready buyer. In a couple of days, they sent me the details of the RC transfer process initiated with the details of the new owner.

Not sure how it works in the case of selling directly to an individual.

Originally Posted by asit.kulkarni93

This advice is not only wrong legally but morally too.

As per law, only third party insurance is mandatory. And no insurance company will cancel the third party insurance without showing another third party insurance in the vehicle number as mandated by law. What m8002 did is just cancel the own damage policy. This will avoid any of the insurance fraud like this or buyer reaching out to seller to sign the forms for accident claim without transfer. There is nothing morally or legally wrong in cancelling own damage part of insurance.

Originally Posted by Turbanator

Correct, an increase in IDV is very difficult. Usually every Year it's decreased by a certain percentage to factor in the depreciation. There is more to this whole situation.

IDV depreciation table is only upto 5 years. After that it is a agreement between insurer and insured. Same for obsolete models. But insurance company will have guidelines on the IDV based on make and model as they will underwrite the risk based on market parameters. It is possible to change with insider approval but gets flagged in the systems during audit. This entire episode reeks of insider hand trying to hoodwink the system.

[m8002?]

@audiohlic and @thanixravidran have already explained.

My cancellation of insurance of the old car and moving to the new car happened on the same day with the same insurance provider. Most probably, they would have created a third party mandatory insurance as I don't remember the details that happened 6 years ago.

In my case, I told the dealer that I need the NCB transferred to the new car and this process was their suggestion.

[ninjatalli]

Originally Posted by m8002?

My cancellation of insurance of the old car and moving to the new car happened on the same day with the same insurance provider. Most probably, they would have created a third party mandatory insurance as I don't remember the details that happened 6 years ago.

Transfer of insurance is a pretty straightforward and seamless process these days. Only requirement is the RC is in the new person's name and the insurance is still active. The dealer would have asked you to sign an insurance transfer application or leveraged a broker on their end to do the transfer once the RC transfer is completed; till then the vehicle stays/runs on your insurance. During this, the seller don't have anything to do (other than the NCB aspect) .

[Amil]

Originally Posted by clix22

Can somebody please take a look at this and translate?Attachment 2404983

This is the police report. They have said that the driver lost control of the car in order to save a puppy on the road and swerved into neighboring farm. Seems like the car has damages worth 2.25L. Nothing about causing third party damages has been mentioned, at least on this page.

[ramradcliff]

Originally Posted by Turbanator

I had a similar incident but for a much smaller amount; my X6 was bought by someone who will not transfer the car despite repeated attempts. I continued to get a third party for 2 Years and then this person met with an accident. He made requests and then noise but I was firm. Eventually, he learnt by getting the car repaired from his own pocket. Shortly afterwards, he got the car transferred.

Was in a very similar incident myself. Sold the car (verna) but there was no change in ownership for few months. Insurance was also renewed on my name. The windshield developed a crack because of stone chipping and the guy wanted to apply for a claim. I told him that I am buying an E class and the NCB loss is much more than his claim and hence can't do it. Ownership change was done in the next couple of weeks

[charanreddy]

Originally Posted by clix22

Its was a VW Jetta AT Highline 2011, sold for 3.8. He has kept IDV as 8.xx. Seems more and more like insurance fraud.

absolutely an Insurance fraud . Looks like there is no dearth of innovative con men in our country. Any other country and the guy would have had criminal charges filed against him.


Please Take the advice of the forum members and do not slack off on following up with a lawyer and registering a FIR or Non cognizable diary entry.

Tomorrow if this whole thing takes a turn for the worse , you need to show bonafides that you are not involved in the scam and as a responsible citizen , you tried to follow the process of law.

Here is how I would approach it.

1. Intimate RTO immediately with right forms over registered post or visit in person and get their acknowledgement.

2. Intimate the insurer immediately, which you seem to have done.

3. Approach a lawyer or a friend who can accompany you to the police station and file a NCD ( non cognizable diary ) and get police acknowledgement . The content can be outlining the facts I.e. you sold the car to XYZ, along with his ID and copies of any proof you have . Mention what happened and also request the police to investigate ( which they won’t do ). Keep this acknowledgement handy.

4. Try to protect yourself. You have not mentioned about your back ground and person A’a background.
These con men are often friends with local goons and if they perceive that you the “Software” types, they can try and intimidate you. Take appropriate care !

[IB290]

There was a post on one of the threads last year about some possible rule from the Government that if cars are sold through/ to entities like Cars24, then the act of selling will indemnify the seller? Does anyone know what happened to that?

[Aviator_guy]

Something similar but not this extreme, happened with me. I exchanged my car for a new car at the dealership. Got a delivery note on dealer's letterhead which mentioned about date of car handover, km reading etc. After a month or so, received a call from insurance company to verify a claim for some minor repair. I mentioned to them about my case and they said that someone had submitted paperwork with my signature (forged, obviously). They asked me to email them that I sold off the car and do not authorize the claim papperwork. I gave an earful to the dealer SA who said that they sold the car but before RC and insurance could be transferred, the car met with a minor accident with a dent on bumper. I blasted them for forging paperwork and submitting wrong claim. Finally matter was closed by insurance company after I wrote to them to not entertain any claims on my name. Within few weeks, RC was transferred to the buyer's name. But the learning was that such malpractice is very common and one can't be too sure unless RC is transferred.

Get as much proof of sale as possible (documents proving handover, ID proof of buyer or third party, photos/videos of handover etc), never blindly trust a middleman and always follow-up relentlessly for RC transfer.

[sandeep108]

It is usually the seller's responsibility to inform the relevant RTO and insurance company of the sale of the car with copies of the relevant signed forms and delivery note (I also mention the time of handover). I always send these documents with a cover letter by Registered/Speed post with AD. Believe me the RTO will file this letter in the vehicle file and take cognizance.

I think if the moderators make a sticky with do's and don'ts on formalities for both buyer and seller in both cases where there is a direct sale and where there is a sale through dealers/Cars24/True Value and the like, it would help many users and avoid many complications down the line.

[ais]

I never hand over my cars when sold until the transfer is completed in buyer's name and reflected on Parivahan website. The keys can be handed over on completion of paperwork and payment, so the buyer is assured the car will not be used further by me/seller.

If the car is well maintained, this arrangement can be negotiated with a keen buyer. I've sold 4 cars like this- all at a price well above the market/depriciated value.

No tenson, no headache.

[Sherlocked]

I have a doubt. If person A or person B are trying to pull off an insurance fraud then why have they not transferred the car to their name? Or they could have transferred it to someone in their family.

I strongly feel OP should lawyer up.

[Aviator_guy]

Originally Posted by ais

I never hand over my cars when sold until the transfer is completed in buyer's name and reflected on Parivahan website. The keys can be handed over on completion of paperwork and payment, so the buyer is assured the car will not be used further by me/seller.

If the car is well maintained, this arrangement can be negotiated with a keen buyer. I've sold 4 cars like this- all at a price well above the market/depriciated value.

No tenson, no headache.

That's the best scenario and ideally should be followed. However it is not feasible in case of exchange at dealer or selling through cars24 etc. Generally you'd take a leap of faith and hope.for the best which works in most cases.

[McLaren Rulez]

Probably exceedingly inadvisable but curious if technically the OP is allowed to simply keep the insurance payout?

[baarish84]

Originally Posted by Amil

This is the police report. They have said that the driver lost control of the car in order to save a puppy on the road and swerved into neighboring farm. Seems like the car has damages worth 2.25L. Nothing about causing third party damages has been mentioned, at least on this page.

Further, in this police report first line states that "a friend" was driving the car.

[AROO7]

Originally Posted by Turbanator

Usually, Insurance companies don't mind taking premiums. So at the time of renewal, they don't ask for any KYC, just payment which can be done by anyone.

No Sir the process has changed they now ask for the Pan Card details of the person in whose name the car is. Renewed my car insurance last week that's when I got to know this.