Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 167

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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, our app and website,
and loss of data and business interruption for us and our Hosts and Guests. Any of these events could damage our reputation, significantly
disrupt our operations, and subject us to liability, which could materially and adversely affect our business, financial condition, and
results of operations.

Our business operations may result in losses
for which we are not insured. 

Our current business model
consists of a peer-to-peer car-sharing platform which facilitates sharing of vehicles between Hosts and Guests. In this context, we are
a facilitator of vehicle bookings but disclaim legal responsibility for cars owned by Hosts and for actions by Hosts and Guests on our
platform and during bookings. Our platform terms and conditions, inform the Hosts and Guests that booking, sharing, and using cars through
the platform is undertaken at their own risk; the lease agreement entered into between Hosts and Guests prior to each booking that occurs
in India also disclaims our responsibility for Host and Guest property and for other damages incurred in relation to bookings. We also
include in our platform terms and conditions a limit on our overall liability equal to the greater of the booking value of each trip and
$120. However, we cannot be certain of the extent to which such disclaimers and limitations would be upheld as legally enforceable in
every jurisdiction or circumstance. We regularly receive communication from Hosts (and from time to time, Guests) asserting that we are
responsible, and requesting reimbursement for damages to vehicles, lost property and other losses. All of our Guests pay a “value
added” trip protection fee as part of a booking, however, the amount available to us from Guest trip protection fees is not sufficient
to offset the amounts requested to cover the cost of all damages claims, nor do we attempt to offset all such requests to cover vehicle
damage. As 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, 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