It is a well-known fact that RC transfer takes from weeks to months after selling a car. In the legal eyes, a seller remains the official owner of the vehicle until the RC has been transferred to the buyer's
name. So, in case of any incidents such as challans, illegal misuse of a vehicle, involvement in an accident, etc., it can drag the sellers into financial losses and legal cases. But have you ever noticed how sellers are kept protected by these platforms until the RC is transferred?
A new industry report has analysed these "Liability Gaps" and reveals how specialised protection policies are now shielding sellers. This article aims to address individual car sellers looking to mitigate risks during the ownership transition period.
What is not covered - This report does not cover the sale of commercial vehicles, accidental scrap, or vehicles with existing police cases (FIRs).
Report Findings - The High Cost of the Liability Gap
The report highlights that the period between the physical handover of a vehicle and the official RC transfer is the most vulnerable phase for a seller. Here are the key data points from the study revolving around challans, RC transfer timelines and the legal risks.
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Challan Frequency - As many as 15% of cars sold through unorganised channels incur at least one traffic violation within the first 30 days after the sale
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RC Transfer Timeline - In all the major cities which were included in the survey, the average time for an official RC transfer timeline ranges from 30 to 45 days
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The Legal Risk - Until the RC transfer update is complete, the original seller is the first point of contact for motor accident tribunals and police inquiries
Comparative Analysis of Risk Mitigation by Platforms
The report compares how different selling channels address these identified risks in post-sale scenarios.
