Have you sold car and want to know how to transfer car insurance to new owner? Car insurance name transfer is an important step of selling or buying a used car and should not be ignored. Selling or buying a used car is an important decision that requires to follow certain process for ownership transfer with name change on necessary documents. For the same, you should transfer car insurance to new owner to make sure all documents and insurance have been transferred to new owner name. Wether you sold or bought a car, the blog will help you to know process of car insurance transfer.
Car insurance transfer
Car insurance transfer to a new owner is a very important for seller and buyer as well. According to the law enacted by the Ministry of Transport, the seller is responsible for transferring the car insurance policy to the new owner. Buyers need to make sure that the policy is forwarded to their name.
Why transfer of car insurance necessary?
- As per the Motor Vehicles Act, the insurance must be in the name of the registered owner. As a buyer, you will not get any clain on insurance if it requires in an accident.
- For seller,If the insurance is not transferred, he/she will not get NCB for new car.
- In case of theft, accident, or total damage, if the insurance policy is not in buyer name, you won’t receive the compensation.
When to apply for transfer of car insurance?
The car seller needs to change for the transfer of car insurance, but as a buyer, it is your duty to make sure the insurance transfers along with the other documents. After RC transfer, insurers provide 14 days of third-party claim coverage, but after 14 days, the new owner is liable for any damages or third-party loss. Therefore, you should apply for a transfer of car insurance at the same time you have started the ownership transfer process.
Documents required for transfer of car insurance
Here are the list of documents you will require for car insurance transfer online
- Original vehicle registration certificate (RC).
- Proof address of buyer
- Proof of identity of buyer
- Existing insurance documents.
- Receipts from RTOs on Forms 29, and 30 signed by both the buyer and seller as proof of sale.
- Buyer and seller passport photos.
- Vehicle inspection report issued by an insurance company.
- Clearance certificate from the owner in front of the car to transfer insurance to new owner.
- Road tax receipts
- NOC from financer
- Original invoice of car
Steps to Transfer Car Insurance
To transfer insurance to new owner, you need to follow these steps:
- Inform the insurance company: You have to notify your current insurer about the car ownership transfer. It may be done online or visiting office.
- Documentation required: Submit all required documents, along with forms 29, 30, and a certificate of ownership to initiate the transfer of vehicle insurance.
- Pay transfer fee: You have to nominal fees for car insurance transfer
- Inspection of car: When the inspection is complete, the policy will be forwarded to the name of the new owner. The insurance company dispatches an investigation team to inspect the vehicle to continue the process.
- Car insurance name transfer: You will get new policy with owner name
RC transfer documents required
FAQs
Is it possible to transfer vehicle insurance?
Yes, it is possible to transfer vehicle insurance after selling or buying.
Can I drive a newly purchased second hand car without transferring insurance?
Yes, there is 14 days third party insurance after ownership transfer within which you can drive a newly purchased second hand car without transferring insurance.
How long does the car insurance transfer process take?
Usually it takes 2 to 5 working days for car insurance transfer process , depending on the insurer and completeness of documents.
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