Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 147

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 147
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 a result, we often remain at risk of residual claims that we may have to absorb in the absence of third-party insurance. For
further information regarding the trip protection fees and related matters, please review information contained in this 10-Q under the
heading “Item 1 Legal Proceedings - Other Matters.”

Further, we currently do
not carry any insurance to protect against third-party damage claims tied to death, personal injury, Host vehicle damages, or Guest or
Host theft or other losses, or third-party property damage. Although Hosts may insure their own vehicles to varying extents and are required
to do so by law or opt for trip insurance covers offered by our insurance partner in certain selective locations to, we do not carry out
independent verification of Host insurance coverage, nor does Host vehicle insurance coverage, to the extent it exists, insulate us, in
full or in part, from all types of damages claims or claims for third-party indemnification associated with damages. We may therefore
be subject to claims of significant liability based on any of the foregoing or based on other events or circumstances which occur during
a booking or relate in some other manner to our platform or our business. We do not maintain balance sheet reserves to cover costs of
defending, disputing, adjudicating, satisfying, or settling any such claims if they are asserted against us and we may not be able to
succeed in any such actions, should they materialize and be determined to result in liability to us. While we are currently in the process
of identifying adequate and feasible insurance coverage for our business, there can be no guarantee that we will be able to obtain or
expand the insurance coverage in the future, and even if we are able to obtain additional coverage, we may not carry sufficient insurance
coverage to satisfy potential claims. As our business continues to grow, incidences of such claims may also increase and, unless we obtain
insurance coverage for such matters, we may choose or be required to absorb larger parts of such uninsured claims to avoid becoming subject
to legal proceedings that could be resolved against us, which could lead to business losses and adversely affect our business, financial
conditions and results of operations. Should uninsured losses occur, they could adversely affect our business, results of operations and
financial condition. Further, our being subject to claims of liability, we may be subject to negative publicity and incur additional expenses,
which could harm our business, financial condition, and operating results.

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