Tips for transferring bike insurance from one owner to another 30th June 2022
Owning a vehicle is a dream for many. In recent times, a vehicle has become a necessity. Be it a quick run to the nearby grocery store or taking road trips during the weekend, automobiles have become the new favourite investment for most people. Since the prices of cars and bikes are increasing daily, potential buyers are forced to have a second thought. While some people opt for loans or EMIs to pay for their motor vehicles, others prefer using second-hand cars.
In India, it is illegal to drive around without motor insurance. As a second-hand vehicle owner, transferring the insurance and understanding the nuances of the same can be challenging and intimidating. This article is here to help you understand the process better so that you can drive around worry-free.
Why is it essential to transfer the insurance policy from the previous owner to the current owner?
If the insurance ownership is not transferred to the new owner, then according to the law, the new owner can be charged legally. Not only that, if the vehicle were involved in an accident without having the name on the policy papers, the new owner would not be able to make any insurance claims. Without the insurance cover, the owner will be liable for all financial costs arising from an accident.
Let's look at the steps involved in transferring insurance ownership from one owner to another:
1. The vehicle's former owner must write an application to the RTO upon selling the bike.
2. Fill out a form at the RTO and submit RC, emission certificate, insurance papers, and fitness certificate.
3. Do not forget to carry valid IDs and passport-size photographs of the applicant.
4. The applicant must submit forms 28 (No objection certificate) and 29 (states the selling and purchasing of the vehicle between two parties) to the RTO.
If the buyer and the seller live in the same state, then report the transfer of ownership to the RTO within two weeks of buying the vehicle. The report must be made within forty-five days if both parties do not reside in the same state.
If selling an old vehicle, the seller must provide all details about the buyer and the bike to the motor insurance provider so that they can stay informed and updated.
After you visit the RTO where your bike is registered, you will need to submit a few forms along with the insurance papers and other required documents. The insurance provider might check the vehicle to ensure if it is in working condition and issue a fitness certificate. After submitting all the files, the RTO will verify and transfer the insurance to the new owner.
What are the benefits of insurance transfer?
1. If the new owner causes an accident, they cannot hold the seller accountable as the insurance papers are in the name of the new owner. This way, you can evade litigation and accountability for the damages caused.
2. NCB: If you have not claimed your vehicle's insurance before the transfer of ownership, then you are qualified for a No claim bonus. During the insurance transfer, you can collect a certificate of eligibility for NCB that can be applied to your following policy.
These were a comprehensive list of all things to remember while undertaking insurance transfers. As mentioned above, the seller and buyer can reap benefits from an insurance transfer. Do not forget to initiate the transfer as soon as possible to avoid legal hassles and financial obligations.
Remember to check out other benefits of policy transfer with your motor insurance provider and ask if there are options for add-ons to the existing policy. This will help you safeguard your vehicle as per your needs.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.