How to Transfer Car Insurance Policy

How to Transfer Car Insurance?

As a buyer, you should take the initiative to insure your car or motorcycle with a motor insurance policy. Yet, according to the law established by the transport department, the seller must guarantee the insurance transfer to the buyer.

Transferring car insurance is a simple process. But first, it's vital to understand the documentation needed to transfer the title when purchasing a used car-

• Registration Certificate.
• Car insurance policy

Submit a transfer request to the motor insurance provider to transfer an existing automobile insurance policy from one individual to another. 

Now that you know what documents are required to transfer vehicle ownership, let's go over the Steps for insurance transfer to your name-

Documents Required to Transfer Insurance

Together with a transfer fee, the following documents are needed for car insurance transfer-

• New Registration Certificate/Form 29
• Old Vehicle Insurance Policy Documents
• Former policyholder's No Objection Clause (NOC)
• New Application Form
• Inspection Report (carried out by insurance company)
• No Claims Bonus Difference Sum

If your Regional Transport Office (RTO) extends ownership transference in the registration certificate, you can apply for a car insurance name transfer along with the other paperwork.

Any insurance company, however, would only settle claims if they get hold of the transfer of registration certificate. As a result, you must send it to the insurance company as soon as you receive a new RC.

RTO Documents Required for Car Ownership Transfer

The following RTO documents are required for transferring ownership of the vehicle.

Reasons Why Transfer of Car Insurance is Required 

There are two significant reasons for the need to transfer the Car Insurance Policy-

• To Avoid Any Prospective Liabilities 

If an accident with your used car leads to third-party liabilities, you cannot file a third-party claim because the previous owner did not transfer the policy to your name. As a result, you will be on your own to settle off your third-party liabilities.

• To Keep Your No Claim Bonus 

The No Claim Bonus is critical from a seller's viewpoint. A No Claim Bonus rewards prudent policyholders who have yet to file a claim in a calendar year.

NCB is available in the form of savings on your damage premium. The longer you go without a claim on your auto insurance coverage, the higher the premium discount you are entitled to.

Things to Keep in Mind While Transferring Car Insurance

• The vehicle's registration number code will not accurately represent the original RTO. For example, look at the back of the RC in the lower right corner, where the RTO is mentioned.
  
  
• Every RTO can register new vehicles. However, the process for transferring ownership differs slightly. The transfer of ownership application should be submitted to the RTO for the buyer's residence area.
  
  
• Form 28, often known as a No Objection Certificate (NOC), is not required when transferring ownership inside the state. Instead, the seller's CC is necessary. When transferring ownership between states, three originals of Form 28 are required.
  
  
• Every second Saturday of the month, RTOs may be closed.
  
  
• On Saturdays, cash desks at RTOs may close at noon.
  
  
• It is critical to make copies of all documents and bring the originals with you. Organizing the documents as needed will save you much time.
  
  
• Keep some stationary on hand, such as pens, whitener, glue, staplers, etc., for last-minute updates/corrections.

Conclusion

Transferring car ownership can be simple if you take the appropriate measures. However, whether you are the buyer or the seller, you should keep copies of any important documents for future reference.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.