To serve the need of in-line rear axle diagnostics as well as other types of transmission inspection, an angular sensor development has been undertaken. It has resulted in a new device, incorporated into a system which performs angular error sensing at three levels. High precision of better than 0.003% in velocity variations is achieved. A continuous check of the null-error status of the devices is maintained in order to ensure maximum reliability of the readings. An easy on-site calibration check is available which eliminates the need for any precision calibrating fixture. The device is configured to accommodate a pass-through drive shaft for in-line mounting. A rugged design and immunity to rotor imperfections are advantageous in a plant environment.