Transfer of Ownership in the RC of the motor vehicle

My car was flood affected in the recent Kerala floods and is in a state of Total Loss according to the surveyor of the insurance company. The insurance company will be settling the claim on Salvage Loss basis. So they have called for salvage quotation and the highest bidder will be awarded the quotation. And I have to give vehicle to the salvage buyer and he will give me the quotation amount and the balance amount of the IDV will be given by insurance company. The insurance company says that the sale of vehicle to the salvage buyer is my responsibility and is at my own risk. The salvage buyer says without giving the RC and the vehicle , he won't give the money. The salvage buyer says he has to repair the vehicle , take insurance policy , pollution control certificate and has to sell the vehicle to a new buyer.Then only he can transfer the ownership of the vehicle. Till that time the vehicle will be registered in my name. He will only give a sale receipt and a proof of his I'd. Kindly advice me how to deal with this situation.I know that as long as the vehicle is registered in my name , I will have to bear all the legal responsibilities.So it is risky.