How to Transfer Car Insurance to a New Owner in India (Complete Guide)

In India, car insurance is compulsory for all vehicles. But what do you do when you decide to sell your car or when you buy a second-hand vehicle? Your car insurance will not transfer to the new owner of that vehicle. This is where a transfer of car insurance occurs. If you want to transfer car insurance to another owner on the sale of your car or just transfer ownership of an insurance policy, knowing how to do it will save you time and money and may help you avoid legal problems as well.

In this blog, we will cover everything you need to know about transferring ownership of car insurance: the required documents, the online process for transferring car insurance, and a few tricks for a quick and effective transfer. We will briefly describe how to transfer bike insurance as well.

What is Car Insurance Transfer?

A car insurance transfer means changing an existing insurance policy from one person to another. It often occurs when someone sells their used car to a new owner. An insurance transfer protects the new owner under the car’s insurance policy and keeps them from any liability in the event of an accident or damage.

Why is Car Insurance Transfer Important?

1. Legal Requirement: In India, it’s against the law to operate a vehicle without insurance. Transferring insurance will keep the new owner covered.
2. Financial Protection: The new owner will not pay for a brand new insurance policy right away.
3. Ensures Smooth Transition of Ownership: Sellers will not have problems or claims in the future.
4. Retention of No-Claim Bonus (NCB): The new owner may get the benefit from the no-claims bonus currently in place from the previous policy to lower premiums in the future.
5. Avoiding Gaps in Coverage: As soon as the insurance is transferred it can avoid a lapse in coverage to protect the vehicle from accidents or damages in the transition of ownership.

Car Insurance Transfer Process in India

The procedures for transferring car insurance may vary a little bit from each insurer, but generally you will need to do the following:

1. Notify the insurer: you will have to let them know.
2. Obtain documentation: make sure you have the paperwork ready for the transfer.
3. Fill out the insurance company transfer form: Fill it out accurately and correctly.
4. Pay fees: the insurance provider may or may not charge fees to complete a transfer.
5.  Policy updates: after all is verified the insurance company will provide a new policy naming the new owner.

Check: How to Check Car Service History Online Free in India

Documents Required for Car Insurance Transfer

Here’s a list of the essential documents required for car insurance transfer:

For bike insurance transfer, the documents are similar: original policy, RC book, sale certificate, and ID proofs.

How to Transfer Car Insurance Online

More and more insurance companies give customers the ability to transfer their car insurance online.  Steps for transferring the insurance include:

1. Go to the insurance company’s web site or mobile app.
2. Go to the “Transfer of Ownership” or “Car Insurance Transfer” page.
3. Upload any required documents.
4. Enter the name of the new vehicle owner.
5. Submit the form and pay all fees.
6. Receive confirmation and updated policy digitally.

You will typically be able to process the transfer online quickly without having to visit the insurance company’s office.

Know: International Driving Permit: How Indians Can Apply

How to Check Car Insurance Expiry Date

Before transferring your insurance, it is important to understand when your current policy will expire. You can figure out expiration date of your car insurance from the following:

• Insurance policy documents sent from your insurance company. 
• Insurance company’s mobile application or website, just enter your policy number. 
• SMS or email notifications any insurance company has reported to you. 

This will assist you in minimizing any lapse in coverage during the transition.

How to Change Insurance Ownership

1. Contact the Insurance Company: You should get in touch with your insurance company regarding the change of ownership of the vehicle.
2. Submit Required Documents: You will have to submit the vehicle registration certificate (register of motor vehicle), sale certificate, identification as well as the current insurance policy.
3. Fill Out the Transfer Forms: You will need to fill out your insurance company’s transfer forms which will include necessary accurate details regarding the new owner. 
4. Maintain Insurance Coverage: The new owner will have the same form of insurance coverage and terms. 
5. Provide a New Insurance Certificate: Once the insurance company confirms all information that was provided, a new insurance certificate will be issued to the new owner’s address.

Tips for a Smooth Car Insurance Transfer

1. As soon as you sell or purchase a vehicle, please inform your insurance company.
2. Complete all paperwork ahead of time to avoid delays.
3. If available, select online transfer.
4. Keep a copy of your updated policy for your records.

Conclusion

Transferring car insurance from one person to another is easy, but it’s one of the steps that people sometimes forget when they buy or sell a car. 

It doesn’t matter if you are asking yourself whether to transfer car insurance to the new owner or how to transfer bike insurance. Using the proper steps to transfer your insurance allows you to be compliant and allow for coverage.

Lastly, whether you understand how the car insurance transfer process works, the documents needed, or you are just looking to do it online, both the buyer and seller can have an easy vehicle ownership transfer.

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