Clarification regarding payment compensation for motor accident


good afternoon sir/madam suppose i have gifted my car to my cousin but on paper i am the real owner.Will i compensate if he did an accident or hit a person or damages any property.If yes,how?

Answers (4)


113 votes

Hello visitor,
If any accident is being taken place by the gifted person than registered owner and driver of the vehicle are liable to pay the compensation to the victim. If you are having any selling proof than same can be considered by the court.


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276 votes

My dear the definition of gift is, A gift, in the law of property, is the voluntary transfer of property from one person (the donor or grantor) to another (the donee or grantee) without full valuable consideration. ... Acceptance of gift by done. And in your case the ownership of car is not transferred that's why you are liable to compensate.

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116 votes

Yes , Please call to insurance company and claim for damages .please do not inform them about your gift procedure . You can refer below claim procedure >
Step 1: Register your claim. Register your claim by calling to your insurance company .
Step 2: Send your vehicle for repair. In case of an accident, take your vehicle to the garage (if movable) or have it towed to avoid further damage. ...
Step 3: Survey and Claim Settlement.

107 votes

Hello,
Obviously yes. You cannot run away from the material fact that the car is in your name. This is the case of Vicarious Liability meaning thereby is, liability of one person for the act done by another person and your cousin will also be liable. Thus, a vehicle should be driven with a great responsibilty, generally also, and in this case also.

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