Why Legal Protection Policies Like Seller Kavach Matter for Indian Car Sellers
Selling a car in India carries hidden legal risks until RC transfer is complete. Learn why legal protection policies like Seller Kavach are essential for peace of mind.
Selling an old car can be an emotional thing for most Indian owners. Cars stay with their owners for many years before they decide to sell them for an upgrade. However, selling a vehicle can attract many types of legal risks which can only be discovered when they knock on the door.
Section 2(30) of the Motor Vehicles Act is uncompromising as it defines the owner as the person whose name is recorded on the official RTO database. Therefore, after a sale, until the Registration Certificate (RC) is officially updated in the RTO records, the first owner remains the "Original Owner." This means sellers are legally responsible for every action a buyer takes with the vehicle.
In this article, we will aim to cover an important aspect of selling a car, why legal protection policies matter for Indian car sellers.
Risks during the RC Transfer Phase
Indian law considers the previous owner as the original owner of the car until the RC is transferred. Many risks can arise even after the handover of the car. This time period is called the "Liability Gap" and is a dangerous window for the seller.
The RC transfer process can take many weeks or even months for interstate transfers. During this time, the original seller remains the primary point of contact for the authorities.
Here are the types of risks that can come up during the RC transfer period.
- The most common risks are the traffic violation e-challans that are delivered right to the seller’s inbox until the ownership is transferred. Most buyers refuse to pay the challans, and this financial liability falls on the sellers’ shoulders.
- Criminal misuse of the vehicle is rare but cannot be ruled out. If the buyer turned out to be suspicious and uses the vehicle for smuggling or other criminal activities, the first point of contact for the police will be the original seller.
- Another risk is related to accidents or hit-and-run cases. In this, the legal notices or police summons come up to the sellers’ doorstep, and they have to defend themselves by hiring lawyers.
In all these cases, the sellers have to compensate for all the losses, which can easily turn into lakhs and become a financial disaster.
The Need for a Legal Closure
In the unorganised market, sellers often rely on a Delivery Note. While this document proves you handed over the car, it holds very little weight in a Motor Accident Claims Tribunal (MACT). The industry is now shifting away from this "handover and hope" culture toward a model of Total Indemnity.
These days, sellers are seeking appropriate legal closure in addition to the highest bidder for their car. Specialised protection, like the Seller Kavach by CARS24, which is setting the standard, has become more popular as a result. In contrast to conventional sales, this involves more than just transferring an asset; it involves immediately relieving the seller of the legal burden.
Structural Safety Net of Seller Kavach
Any Seller protection policy should be designed in such a way that it should be able to cover all the risks associated with the ownership transfer process. This is where CARS24’s Seller Kavach acts as a legal and financial buffer from the second the keys are handed over to the buyer. Here are the benefits of Seller Kavach.
Immediate Financial Indemnity
From the moment of car handover, sellers are shielded from post-sale traffic violations. If a digital challan is generated while the car is in transit to a new owner, the financial responsibility is absorbed by the platform.
Accident Liability Buffer
In the event of a mishap, the Seller Kavach ensures sellers are not unfairly penalised or dragged into lengthy compensation disputes for a vehicle they no longer control.
Professional Lawyer Assistance
Sellers with Kavach protection gain access to professional legal support from CARS24. This "Lawyer-on-Call" service ensures that legal experts represent your interests, proving the transfer of possession and resolving disputes before they escalate into court cases.
Conclusion
In the end, we would like to put emphasis on the legal protection policies, like Seller Kavach, for today’s busy individuals who want to stay absolutely safe after selling their car. Anyone who plans to sell their car is actually looking for newer experiences with the vehicle of their dreams and peace of mind.
So, if you want to sell your old car but do not want to get into financial or legal troubles, it is best to choose a platform where you are protected. You cannot always chase higher price quotes, as a few thousand gains can turn into liabilities of lakhs. The ultimate price is your peace of mind, which should not be traded at any cost.
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