Most two-wheeler owners choose to sell their bikes and buy new ones because most models are constantly upgraded. According to the National Family Health Survey’s most recent report, 49.7% of Indian households own a two-wheeler. In addition, 26.6 million two-wheeler sales are anticipated in the market by 2025.
People selling an old bike must transfer their insurance policies to the new owner to avoid legal issues.
How To Transfer The Insurance Policy For A Two-Wheeler
Transferring ownership of the old vehicle and insurance policy to the new owner is a crucial first step when someone sells their old two-wheeler to buy a new one. The sale of the vehicle is then reported to the relevant Regional Transport Office (RTO).
The process of transferring bike insurance is relatively easy. You need to take these actions:
Step 1: Within 14 days of the transfer of vehicle ownership, apply for a transfer of two-wheeler insurance. As soon as possible, notify the insurer of the ownership transfer.
Step 2: Send in the required paperwork, including the vehicle’s sale deed, insurance documentation, documents proving the transfer of ownership, and the Registration Certificate (RC).
Step 3: Aadhaar, PAN and driver’s licence are examples of KYC documents that both the seller and the buyer must submit.
Step 4: Before ownership transfer, the bike may be inspected by some insurance companies.
Step 5: After verifying, the motor insurance company gives the new owner access to the policy benefits.
If the new owner takes these actions after 14 days of purchasing the used bike, they will need to buy a new insurance policy.
Documents Needed To Transfer A Motorbike Policy
To request a transfer of an insurance policy to a new owner, individuals must provide specific necessary documentation, including:
- The registration certificate for the vehicle
- Forms 28, 29, and 30
- Details of the insurance policy
- The sale deed for the vehicle
- Documents transferring ownership
- The history of premium payments for an insurance policy
- A certificate of no objection (NOC) from the prior owner
- Buyer and seller’s passport-sized photo
- Buyer and seller’s address proof
Advantages Of Transferring The Seller’s Two-Wheeler Insurance Policy
Although a buyer can benefit from transferring a two-wheeler insurance policy, a seller may believe this process will not help them. This is untrue, though.
The following are advantages that a seller receives when they choose to transfer their two-wheeler insurance policy:
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Legal Defence
Only if the new owner’s name appears on the policy document will the third-party bike insurance coverage help if they cause harm to a third party. If not, the previous owner will be liable for all damage to the third party.
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No Claims Bonus
No claim bonus (NCB) recipients are those who have not filed a single claim during the duration of their policy. This incentive bonus can help lower the insurance premium significantly. An individual can claim the NCB certificate during the transfer of a policy; this certificate will be applied to the person’s subsequent insurance policy. This will help one maintain the benefits of their NCB. Make sure you renew your bike insurance to avail yourself of uninterrupted coverage and benefits. ## *
*Standard T&C Apply – coverage, inclusions, exclusions
##All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.