Question

Hari insured his car. Car met with an accident and destroyed. The Insurance company paid him the value of his car. Ram sold the accidental car for Rs 20,000. Who has the legal right on this money? Explain.

Answer 1

The legal right to the money from the sale of the accidental car belongs to the Insurance company.

Step-by-step explanation:

In this case, the legal right to the money from the sale of the accidental car would typically belong to the Insurance company. When Hari's car was insured, he transferred the legal ownership of the car to the Insurance company in exchange for a payout in case of an accident.

Therefore, the Insurance company becomes the owner of the accident-damaged car and has the right to sell it. The Rs 20,000 from the sale of the car would be considered the Insurance company's property.