What is the best way to transfer Car Insurance to a new owner?

In India, there is a sizable secondhand car market. Many rookie riders and drivers prefer to use a used vehicle to avoid significant damages caused by accidents while learning to drive. Others believe that used cars are significantly affordable than new ones. As a result, owning a secondhand is becoming increasingly rare. However, consider more than simply the vehicle’s price and brand and model when purchasing a used car.

While the new owners receive the automobile’s registration documents, you must also pay attention to the former Car Policy and transfer it to their name. Let us learn everything about transferring Car Insurance.

According to the Indian Penal Code and the Motor Vehicle Act of 1988, driving without insurance is a criminal offence. After you have decided on your desired four-wheeler, focus on transferring the vehicle registration documents to your name. As a new owner, pay equal attention to the insurance transfer.

What is the process?

As you get the new vehicle, you need to start both the ownership transferring process and transfer the 4-Wheeler Insurance. Both procedures must happen simultaneously. If the car’s right does not get transferred to your name simultaneously, the previous owner’s policy becomes invalid.

According to the Insurance Regulatory and Development Authority of India, the claim gets filed if the name and address on the vehicle registration documents match those on the insurance paperwork. If your vehicle involves in an accident, the new owner can collect the costs of the damages. If uninsured, your claim gets rejected. Here are ways to transfer the Four Wheeler Insurance to a new owner:

The new owner must either start the transfer process by themselves or contact your insurance company for completing the same.

The owner must also supply the documentation listed and request that the name on the Car Insurance gets changed. The checklist includes:

Form 29, which is the application name change form

The new insurance application form

The original insurance certificates

The new registration document that includes the name of the new owner, also known as the insurance transferee

No Objection Certificate or NOC from the previous policyholder

The difference amount certificate for No-Claims Bonus

Besides these, you must also pay Rs. 50 transfer fees. The Four-Wheeler Insurance provider undertakes a vehicle inspection and creates a report on the vehicle.

Following the submission, the insurance provider allows the new owner to seek adjustments to the policy’s features.

Remember, the policy becomes worthless if the Auto Insurance does not get transferred within the specified time. The insurance provider is not bound to offer any refunds or reductions.

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