Business Standard

When selling a car, you must ensure transfer of ownership in govt records

If it hasn't changed in RTO's records, the original owner will be held liable in case of an accident

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Tinesh Bhasin
If you sold your car and did not bother to change the ownership in Regional Transport Office’s (RTO’s) records, you would also be liable for compensation claims arising from accidents involving the vehicle, according to a recent ruling of the Supreme Court.

Experts say that the seller needs to ensure that the transfer has taken place and the RTO records are updated. “If there’s an accident and a liability arises, the person who is the owner according to RTO records will also be liable according to the Supreme Court order,” says Sajja Praveen Chowdary, head of motor insurance at Policybazaar.

The responsibility,

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