My car sold without ownership transfer is totalled. Now what?

Can this be a type of Insurance scam? I don't want any unnecessary trouble. What would you suggest I do?

BHPian clix22 recently shared this with other enthusiasts.

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

I sold my car in 2021 to person A. Got all paperwork signed etc.

• Person A did not transfer car to his name. Gave various reasons such as posted out of country etc.
• 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.
• 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.
• Has shared police report which states from what i can understand, that car skidded from road onto field and right side is damaged. Also shared contact details of surveyor.

I don't know what to make of this. Can this be a type of Insurance scam? I don't want any unnecessary trouble. What would you suggest I do?

Here's what BHPian clevermax had to say on the matter:

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.

Here's what BHPian Mustang_Boss had to say on the matter:

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.

Here's what BHPian tud had to say on the matter:

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.

Here's what BHPian Turbanator had to say on the matter:

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.

Here's what BHPian Animesh had to say on the matter:

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.

BHPian clix22 had the following update to share on the matter:

Update :

I spoke to person A to get more information. He has renewed the insurance in my name from policy bazaar and paid the premium himself.

They have raised a claim post accident, surveyor is person B's friend and is handling it. On asking him who signed the claim form , he said form has not been filled and will need id proof also.

Have told him that I have sold the car to him and its his responsibility now. Not interested in getting involved in this.

Read BHPian comments for more insights and information.
I will call / email bajaj allianz to tell them that car has been sold by me and I have no stake or claim on it.