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Ramalingam

Ramalingam Kalirajan  |11326 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 13, 2026

Asked by Anonymous - Jul 13, 2026
Money
Dear Sir, I have sold my car to CARS24 and its many months they have not done RC transfer inspite of following up with them multiple times. I understand that till RC transfer is not complete then it is liability of the registered owner, Can I keep buying third party insurance till vehicle is in my name to cover my liability, even when the car is not in my possession but RC is still in my name. Will insurance company honor any claims in this regard?
Ans: » Your Concern is Valid

Yes, as long as the RC remains in your name, continuing third-party insurance is advisable.
This helps protect you against potential third-party liability arising from the vehicle.

» Important Limitation

Insurance coverage does not remove your legal exposure as the registered owner.
The insurer will generally handle valid third-party claims as per policy terms.
However, claim settlement can depend on the specific facts of the case and policy conditions.

» Immediate Action

Continue pursuing RC transfer with the buyer.
Keep all sale documents, delivery acknowledgment, and correspondence safely.
Consider sending a formal written notice seeking immediate RC transfer.

» Final Insights

Continuing third-party insurance is better than allowing the policy to lapse while the RC remains in your name.
However, the permanent solution is to get the RC transferred at the earliest.

Best Regards,

K. Ramalingam, MBA, CFP,

AMFI-Registered MFD – ARN 4188

www.holisticinvestment.in

https://www.linkedin.com/in/ramalingamcfp/
(more)
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