- This topic has 65 replies, 60 voices, and was last updated 1 year, 2 months ago by
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PFull disclosure, I have zero knowledge about any of these. If there’s more info needed I will share.
So my cousin wants to buy a private car for his business which is a car rental type of service where he’ll drive the car himself as a driver or he’ll assign a driver. He lives here but his documents still have his old address which is very far from here. He said that if he buys under his own name he’ll have to pay a lot more for toll, but if it’s on my name or my parents, since we’re nearby it’ll be less for monthly.
He agreed to sign a bond paper which will mention that he’s the one in charge of the vehicle so all liabilities will fall on him in case of any trouble. But still, what could be some other dangers here that I’m not aware of?
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CIn case he gets in any accident where someone is injured/death and if fir is filed, the owner of the vehicle would also have to attend court or hire a lawyer, if they do not hire a lawyer or attend the hearing, a warrant may be issued for their arrest. And if the claim of the accident exceeds the insurance coverage the owner of the vehicle will be held liable. If in case your relative wants your family to co-sign on their auto loan, it’s a different story altogether.
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S>the owner of the vehicle would also have to attend court or hire a lawyer
In most TP cases the owner does not mark his presence with no consequences.
>a warrant may be issued for their arrest
Though a court can issue a warrant, I have never seen it happen.
>if the claim of the accident exceeds the insurance coverage
TP coverage, to my knowledge, is unlimited.
That said, it is a singularly bad idea to let any one buy a vehicle in your name. If i were OP, I would politely decline.
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CTP cases involving death, driving under the influence, and cases where the judge feels the person is purposely avoiding court, a warrant has been issued in such cases.
There is no unlimited third party coverage for any insurance policy, they are running a business and can’t afford to have unlimited coverage it’s neither practical or feasible. It all depends on the policy and I believe 10 lakhs is the minimum coverage required
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SThe limit is there in TPPD, ie third party property damage. 7.5 lacs.
TP death and TP injury is unlimited. -
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PAsk him to update the aadhar card address and get the car on his name. Its easy and straightforward.
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RThe biggest downside is that your parents will be the legal owner of the car. Any mishap happens which eventually will happen, all the liabilities will fall on your parents. In any accident, police will search for the registered owner which will be your parents. Income tax department can also get involved
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CAffidavits dont hold much ground in case of accidents resulting in injury/ death by the vehicle. If you and your father need sound sleep at night. DO NOT ALLOW this to happen.
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SThat bond won’t hold much value in courts if some serious accident or worse somebody dies in an accident.
Ask yourself this question, in case of an accident, will that cousin accept in court that all responsibilities of the death is his and not your parents?
Answer to this question is usually a big NO. In case of a serious accident, your cousin will try maximum to keep himself safe in court.
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NDon’t do that as it can become a serious liability especially in case of accident. Better would be for tour cousin to enter into a leave and licence / rent agreement with your parents to show his address at your parents home temporarily for the purpose of buying the vehicle on his own name.
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C1. Any legal issues related to the car, the owner maybe summoned by law/legal authorities.
2. Running the car for a business registered under an individual is not legal, RTO can size the vehicle and registered owner will be in trouble.
3. If the car is driven by a minor and gets involved in an accident, registered owner is responsible. Insurance will be void as well, so damages will have to be paid out of pocket by owner.
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NNo! Private cars CANNOT be used commercially. Insurance will deny claim if they find out. Do not let anyone else drive a car under your name, the liability falls on you
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CIf you agree to register the car in your name, be prepared to sell everything you own. Insurance won’t cover third-party claims if the car is being used illegally—like for rentals or as an unlicensed taxi. If there’s an accident and, say, a young doctor or a high-earning professional is killed, the compensation can run into crores. And guess who’s legally responsible? The registered owner.
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