In plain words: two questions decide a claim — who is entitled to compensation, and who is legally bound to pay it. The answers are not always the people you would first expect.
Who can claim
- An injured victim — for themselves.
- The dependants and legal representatives of a person who died.
- Pedestrians, cyclists and others harmed by the vehicle.
Who is liable to pay
Typically the driver, the owner and the insurer of the offending vehicle. The insurer usually satisfies the award; the owner is liable where insurance is absent or void.
The sold-but-untransferred vehicle
A frequent trap: a person sells their vehicle but the registration is never transferred. If that vehicle later causes an accident, the registered owner can still be held liable to the third-party victim, because the records show them as owner — the Supreme Court has made clear that a victim should not suffer because of an internal, unregistered transfer. The lesson for sellers: always complete the transfer of registration.
Where do passengers stand?
This depends on the vehicle and the policy. A paying passenger in a public-service vehicle is generally covered. For a private vehicle, a gratuitous (free) passenger may not be covered by the basic third-party policy unless additional cover was taken, and occupants of a goods vehicle have their own rules. The exact coverage turns on the policy and the facts, so it should be checked carefully.
Frequently asked questions
I sold my car but didn't transfer it — am I still liable? To a third-party victim, often yes — which is why you must complete the transfer.
Can a passenger in the car at fault claim? It depends on the policy and the vehicle type; check the cover.
Who do I sue if I don't know the owner? Start with the vehicle's registration and insurance details; a lawyer can help trace and implead the right parties.
How Vakil Help Desk helps
Vakil Help Desk identifies the right parties on both sides — the proper claimants and every liable owner, driver and insurer. If you are unsure who to claim against, we can map the liability and pursue it.
This article is for general legal awareness, not individual legal advice. Compensation and tax outcomes depend on the facts, the evidence and the law as applied to your case, and figures and positions are revised over time. Please consult a lawyer before acting.