How to transfer bike insurance from one person to another

How to Transfer Bike Insurance from One Person to Another?

Insurance Two Wheeler Insurance

What is a Bike Insurance transfer?

A Bike insurance transfer is a process of transferring your bike insurance policy to the new owner of the bike. In most cases, such transfers are required when purchasing or selling an older two-wheeler. Such changes in ownership must be reported to your insurance company.

What are the Documents Required to Transfer Insurance and Ownership?

The following documents must be supplied with the application to change the ownership of a car or bike insurance in order for the transfer to be successful:

  • RC in its original form.
  • Forms 28, 29, and 30 (application form with buyer’s and seller’s signatures) and proof of sale receipt from RTO.
  • The former owner’s No Objection Clause (NOC).
  • Proof of the buyer’s address.
  • Photographs of the buyer at passport size.
  • Document for an active and old insurance policy.
  • The insurance company’s inspection report on the car.

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No Claim Bonus Certificate:

If you haven’t filed a claim during the policy period, the insurance company will give you a No Claim Bonus (NCB), which is a premium discount when you renew your automobile insurance policy. The insurance provides this as a percentage, which increases with each year without a claim.

The NCB cannot be transferred to anybody else because it is offered to the vehicle owner for not filing a claim and is not available on the vehicle. As a result, as a buyer, you will be unable to benefit from the NCB received by the previous car owner. However, as a seller, you have the option of transferring the NCB to a new policy.

Here’s a look at the NCB rate grid in action:

No Claim Bonus Rate Grid %
After one claim-free year 0.2
After 2 consecutive claim-free years 0.25
After 3 consecutive claim-free years 0.35
After 4 consecutive claim-free years 0.45
After 5 consecutive claim-free years 0.5

RTO Documents for Car and Bike Ownership Transfer:

The following RTO paperwork is required when transferring car ownership –

  • Form 28 – This form functions as an application to obtain a NOC from the appropriate RTO. It also serves as proof that the seller is no longer liable for the car, which could obstruct the transfer of ownership.
  • Form 29 – It serves as notice to the registering authority, or RTO, that the car is being sold by the prior owner. In addition, the seller has turned over all vehicle documentation to the buyer, including the registration, insurance policy, and Pollution Under Control (PUC) certificate.
  • Form 30 – Acts as a confirmation to Form 29 that ownership of the car or motorcycle must be transferred. The seller has also transferred all legal rights and responsibilities for the car or two-wheeler to the buyer.

Clearance Certificate:

If you’re moving a car from one RTO to another within or outside the state, you’ll need this certificate. It contains information such as the buyer’s and seller’s credentials, as well as the vehicle’s specifications.

Why is the Transfer of Car or Bike Insurance Required?

A Bike or Car insurance policy is tied to a specific vehicle rather than the owner of the vehicle, according to the terms and conditions of the insurance company. As a result, when a vehicle is transferred to a new owner, the insurance must also be transferred. It is critical that the insurance ownership transfer process be performed concurrently with the car ownership transfer. Here are a few suggestions

  • Future Liabilities Should Be Protected- If you cause damage to a third party or their property and have to file a third-party claim, the insurance must be in your name. The third-party claim will be rejected if it is not transferred, and you will be held legally accountable. As a result, it’s critical that all vehicle documentation be transferred to your name.
  • Keeping Your No-Claim Bonus: – If you do not file a claim during the policy year, the insurer will provide you NCB, which is essentially a discount on the next year’s price. As a seller, you must notify your insurer and redeem the NCB Certificate in order to receive premium discounts when purchasing new insurance.

What Happens if the Vehicle Insurance Transfer is Incomplete?

The seller is required by Section 157 of the Motor Vehicle Act to transfer the insurance policy to the purchaser’s name within 14 days after the vehicle’s purchase. Please keep in mind that only the third-party component of the policy is transferred automatically. This means you’re not covered for things like Own Damage Insurance (ODI) or Add-ons (if any).

If you do not transfer your bike or auto insurance policy to your name, the insurer will not be responsible for any damages you incur, including both third-party and own-damage coverage. In addition, the court may issue a notice to the prior owner to compensate for the loss suffered by a third party as a result of the new owner’s negligence.

Why is Vehicle Insurance Necessary?

Motor insurance is required in India, whether it is for a new or old automobile or motorcycle. Apart from being a legal obligation, it also serves as financial protection in the event of damage to a third party or your own car.

The following are some of the reasons why automobile insurance is required:-

  • Covers you financially in the event that your car is involved in an accident.
  • If you have a comprehensive automobile insurance policy, it reduces your liability for third-party damage as well as your own.
  • The insurance company compensates your family in the event of your death as a result of an accident.
  • It covers the cost of hospitalization.

How to Transfer Insurance of Second-Hand Bike and Car?

If you follow the essential criteria, transferring the insurance of a used bike and car is simple and straightforward. The steps to transfer used vehicle or motorcycle insurance are as follows:-

Step 1: Make sure you have all of the necessary documentation to begin the insurance transfer.

Step 2: As soon as the ownership transfer is complete and within the time restriction, apply for the vehicle insurance transfer.

Step 3: For complete coverage, select a comprehensive auto insurance plan with optional add-on coverage

Step 4: To begin the transfer of the bike or auto insurance, submit all of the documentation, along with Form 29, 30, and the Sale Deed.

Step 5: Your car will be evaluated in order to continue the insurance policy transfer process.

Step 6: The policy will be transferred to your name once the assessment is completed.

Things to Keep in Mind for a Seamless Second Hand/Used Vehicle Insurance Transfer.

Consider the following suggestions to make sure your transfer goes smoothly:

  • The significance of the Registration Certificate (RC) is as follows:-One of the required documents to transfer the insurance policy to your name is the RC. When asking for an insurance transfer, make sure you have the RC document.
  • Within 14 days, transfer the policy:-Ensure that the car or bike insurance coverage is transferred within 14 days after the vehicle ownership transfer.
  • Fill out the proposal form and submit it: To guarantee a smooth transaction, you may be requested to complete a proposal form and submit a copy of the car ownership sale document.

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