Bike Insurance Transfer
How to Transfer Bike Insurance from One Person to Another?
Are you thinking of selling your old bike to purchase a better model? Newer bike models arrive in the market every year, boasting impressive features and specifications. If your ride needs an upgrade, investing in a new vehicle might be the best option.
However, before heading to the market to hunt for a perfect two-wheeler to replace your current one, you must consider whether you want to sell your older vehicle. Selling a bike is always beneficial, as it allows you to recover a part of your considerable expense for the new ride. Further, you can always find consumers looking for second-hand bikes at reduced prices.
While selling your older two-wheeler, do not forget about transferring your insurance policy to the bike’s future owner. While most people remember to transfer their vehicle registration, they should also keep in mind the importance of bike insurance transfer.
Avoiding undertaking such a transfer can lead to significant legal hassle for both you and the bike’s new owner if the concerned vehicle is involved with accidents in the future.
What is Bike Insurance Transfer?
Bike Insurance transfer refers to transferring your bike insurance policy in the name of the bike’s new owner. Generally, such transfers are necessary when you are about to buy or sell an older two-wheeler.
You must alert your insurance company of such transfers of ownership. Doing so allows the insurer to update their paperwork accordingly to reflect that this bike in question has a new owner.
Why Should You Transfer Your Bike Insurance Policy?
Bike insurance transfer is vital because, without it, a new owner would be susceptible to litigation. Further, if the vehicle in concern is involved in a road mishap in future, your insurer will decline claims from the new owner if his/her name is not present on the policy papers.
If you are buying a second hand bike, make sure that its previous owner completes all insurance transfer formalities.
Without insurance payout, the new owner would need to bear the entire financial liability arising from such accidents.
Before proceeding to insurance policy transfer, you should officially transfer the ownership of the vehicle to its new owner.
Transferring Ownership of a Bike in 3 Simple Steps
Selling a bike is more than just handing over your keys to the new owner. Transferring a bike properly to a new owner should involve these following steps.
- Step 1: Apply for bike ownership transfer at a Regional Transport Office. Make sure that it is the same RTO where your initial registration for the vehicle took place.
- Step 2: Submit Form 29 and Form 30, registration certificate, emission test papers, insurance documents and other paperwork at the Directorate of Transport Office. You will also need to submit passport sized photographs.
- Step 3: After all documents are submitted, the registering authority verifies them and, if everything is in order, transfers ownership of the bike.
Buyers can use the table illustrated below to understand their obligations during a bike ownership transfer.
What you Must do
If the buyer resides in the same state as seller.
Report your transfer of ownership to the regulating body within two weeks of purchase.
If the buyer and seller reside in different states.
Report transfer of ownership to the regulating body within 45 days of purchase.
If the bike’s owner dies before officially transferring ownership.
A buyer must inform the regulatory body of this occurrence within 30 days.
Bike Insurance Transfer Process
No clue about the insurance transfer process? Do not worry; just keep reading.
The insurance transfer process is relatively simple if you know some necessary steps. Listed below is a complete guide to help you in this endeavour.
- Step 1: Apply for insurance transfer within 15 days of your official ownership transfer of the two-wheeler. The best approach is to initiate such insurance transfer formalities as soon as you start the same for ownership.
- Step 2: Some documents are vital for the transfer of a bike insurance policy. Make sure you carry documents including RC, paperwork indicating the date of ownership transfer, original insurance policy paperwork, name of your dealer and the policy’s premium payment history.
- Step 3: Both the owner’s and buyer’s KYC papers are mandatory. Carry the PAN card, Aadhaar card, driver’s license and more to maintain a record of this transfer.
- Step 4: As a seller, you can add the name of another vehicle to your current policy to extend coverage to your new bike or two-wheeler. Keep in mind that the premium rate is liable to change, based on the pro-rata equation.
- Step 5: A seller must submit his/her third-party insurance during this transfer of policy. This aids in the premium calculation for the plan going forward.
How does Bike Insurance Transfer Benefit Sellers?
While benefits from such a transfer are apparent when it comes to a new bike owner, a seller might believe that he/she does not gain from it. This is not true at all.
- Guards Against Future Litigation Problems - If the new owner causes an accident with your old vehicle, an insurance policy will kick in only when the name of the new owner is reflected in the policy papers. Otherwise, you will be held accountable for damages caused in the accident. Whether it is the financial aspect or the legal liabilities, preventing such hassle is simple with insurance policy transfer.
- No Claim Bonus for the New Policy - If you have avoided filing a claim on the vehicle’s insurance before ownership transfer, you are eligible for No Claim Bonus or NCB. During policy transfer, you can collect a certificate indicating your NCB eligibility, which is applicable on your next purchased policy to protect your new bike. Failing to initiate official transfer would mean that you lose the accumulated NCB from this previous policy.
There you go!
So, keep these factors in mind and make sure always transfer your insurance plan for an older bike during its sale. Doing so benefits both parties involved in such transactions.