[clix22]

Dear friends,
Let me put forward my situation to you. Any advice will be appreciated.

1. I Sold my car in 2021 to person A. Got all paperwork signed etc.
2. Person A did not transfer car to his name. Gave various reasons such as posted out of country etc.
3. person A sold car to Person B in Dec 2022. came to me with blank transfer forms for transfer of car which i did not sign as new owners details, signature etc. were missing in it.
4. A called me yesterday saying B has met with accident in car on jan 5th and car is totalled. No injuries to anyone or damage to property. Insurance company wants to release payment for loss. Since car is still in my name will need bank details for neft. And once payment reaches me, I can transfer to person B.
5. Has shared police report which states from what i can understand, that car skiddded from road onto field and right side is damaged. Also shared contact details of surveyor.

I dont know what to make of this. Can this be a type of Insurance scam? I dont want any unnecessary trouble. What would you suggest I do?

[clevermax]

I wonder how person A managed to sell the car which was still in the name of the OP, to person B.

You're by no means legally bound to give that insurance money to A or B, I suppose.

[Mustang_Boss]

It looks like you are in a position, where you don't have any choice of the situation or the options.

If no damage to any other parties, take the cash and hand it over to B. That should resolve everything. AND, Take everything in writing, with an attorney as evidence that B has bought the vehicle from A and has met with an accident and you are just helping him as you were not in the country for some time. This should help you legally, if you get involved in any issue. (2 Witnesses and something in writing from A too, if possible.)

and forgot, say good bye to your clean insurance history.

[Guna]

Just curious: Is the 'total loss' amount more than what A paid you when he purchased the car? If not, this may be genuine case, especially since the insurance company has processed the claim.
If the amount is significant, it may be a bit of a headache from income tax perspective.
Put a condition that you will hand the money only after the car ownership is transferred so that you can avoid further trouble. (I don't know if this is relevant as the totalled car may get de registered. But it should not get sold again and be still in your name)

[tud]

Originally Posted by clix22

I dont know what to make of this. Can this be a type of Insurance scam? I dont want any unnecessary trouble. What would you suggest I do?

First of all thank your stars that car accident didn't involve any life or property damage for which you as the owner is solely responsible (partly responsible if you can prove it was driven by someone else).

Person A knowingly got into this deal with the idea that the car ownership woudn't be transferred and he can pass off the car after he owns it for a certain period. Whether person B had the same intention is not clear.

From your side, if you sign to claim insurance, it amounts to insurance fraud as you have sold the car. Also you claiming this insurance also makes you liable for any other issue that is reported from the past (2021-23) as you have clearly established ownership access in 2023 by claiming insurance.

It is high time you start ignoring person A's call. It is for person A and person B to absorb the loss and move on.

Also find a contact in the police department to advice you on the next set of actions as there is a car totalled and registered in your name. This car is going to find its way to being restored or its engine sold elsewhere.

[clix22]

Originally Posted by clevermax

I wonder how person A managed to sell the car which was still in the name of the OP, to person B.

You're by no means legally bound to give that insurance money to A or B, I suppose.

I guess, he may have acted as agent trying to sell my car. That's the only thought that comes to mind. Also was wondering how insurance company managed to renew insurance in my name when premium was paid by someone else.

Originally Posted by tud

First of all thank your stars that car accident didn't involve any life or property damage for which you as the owner is solely responsible (partly responsible if you can prove it was driven by someone else).
...

As I have not claimed insurance, this means my signature must have been faked and documents submitted? This also leads me to feel that the surveyor is involved in this. I was thinking on speaking to him, but now I think I will get some story and not true picture.

[pkulkarni.2106]

You sold your vehicle in 2021 & it has met with an accident in 2023. How did person A or person B renewed the insurance, when the car was still on your name?

[clix22]

Originally Posted by pkulkarni.2106

You sold your vehicle in 2021 & it has met with an accident in 2023. How did person A or person B renewed the insurance, when the car was still on your name?

This is what I have not been able to figure out. How insurance company agreed to issue policy in my name when payment is being done by someone else.

[Turbanator]

Originally Posted by clix22

A called me yesterday saying B has met with accident in car on jan 5th and car is totalled. No injuries to anyone or damage to property. Insurance company wants to release payment for loss. Since car is still in my name will need bank details for neft. And once payment reaches me, I can transfer to person B.

By signing on the claim, you will agree to the possession of the car all this time and it's not all recommended given the risks of the car being involved in any other crimes, challans etc.

I won't sign anywhere. Let such an example be highlighted so any buyers who think it's the seller who is going to get all the problems by not transferring know the 'benefits' of not transferring the ownership.

I will instead write to Insurance with all the paperwork for the sales. No sympathy for such guys.

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.

Originally Posted by clix22

This is what I have not been able to figure out. How insurance company agreed to issue policy in my name when payment is being done by someone else.

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.

[pkulkarni.2106]

Originally Posted by clix22

This is what I have not been able to figure out. How insurance company agreed to issue policy in my name when payment is being done by someone else.

If I'm not wrong, unless the ownership is transferred the new owner can't renew/purchase insurance policy with their name. But at the least, you must have received SMS/email from the insurance company when they renewed the policy on your name, right?

[fordday]

Originally Posted by clix22

This is what I have not been able to figure out. How insurance company agreed to issue policy in my name when payment is being done by someone else.

Anyone can make payment on your behalf and renew the insurance policy. I don't see why insurance company will refuse to renew, wherever the payment comes from.

[Animesh]

Another aspect. The entire thing is illegal and you don't know what kind of trouble it will land you in. I would definitely put some records at the police station detailing the chronology of events. Be as detailed as possible. And you will also lose out on No Claim Bonus in case you do claim that insurance and then pay to the new owners.

Whatever it is, it can't be good for you in future and you have nothing to gain from this. But, yeah you can definitely walk into a hole.

[Max]

Originally Posted by pkulkarni.2106

You sold your vehicle in 2021 & it has met with an accident in 2023. How did person A or person B renewed the insurance, when the car was still on your name?

If the insurance company was not informed about the car sale, usually a renewal premium payment will result in renewal of insurance policy under the original owner's name.

Whenever a car is sold, notify the RTO authorities and insurance companies about the sale in writing and let the new owner know about this. There are RTO forms available for notifying the sale of cars to RTO authorities. Make it clear to the new owner that if he does not transfer the car to his name immediately, he will be solely responsible for any accident claims and he will be in trouble in case of any accident. If he does not initiate a car transfer within 15 days, consider sending him legal notice from a practicing advocate.

In my opinion try to find out if any police complaint has been registered for this incident and contact advocates for legal advice.

[SideView]

Originally Posted by clix22

Dear friends,
Let me put forward my situation to you. Any advice will be appreciated.

1. I Sold my car in 2021 to person A. Got all paperwork signed etc.
2. Person A did not transfer car to his name. Gave various reasons such as posted out of country etc.
3. person A sold car to Person B in Dec 2022. came to me with blank transfer forms for transfer of car which i did not sign as new owners details, signature etc. were missing in it.
4. A called me yesterday saying B has met with accident in car on jan 5th and car is totalled. No injuries to anyone or damage to property. Insurance company wants to release payment for loss. Since car is still in my name will need bank details for neft. And once payment reaches me, I can transfer to person B.
5. Has shared police report which states from what i can understand, that car skiddded from road onto field and right side is damaged. Also shared contact details of surveyor.

I dont know what to make of this. Can this be a type of Insurance scam? I dont want any unnecessary trouble. What would you suggest I do?

How did he claim insurance without your signature?
(No other way other than faking it)

If you sign and claim the amount you NCB whatever you had is gone.

They say one story about no damage to property/people, what if you find out this is not true and cases are filed.

With you signing and claiming any amount it will be on your head.

[Engine_Roars]

Get it documented with Insurance company and Police authorities, you might just be walking into a trap by accepting that money into your bank account. If they were driving a car without transferring the ownership and forged your signature to get the insurance approved, they must be ready to face the consequences.