All you should know about bike insurance policy after the death of the policyholder


21 Jul 2023

Bike insurance policy transfer process after the death of the policyholder

If you are a bike owner, you must be aware of the necessity of having an insurance policy. It is compulsory to ensure road safety as well as financial protection in case of an accident.

A bike insurance policy provides financial protection by covering any expenses which may be incurred in reparation or compensation of the damages caused to any person or property during an accident that involves the vehicle. Coverage benefits may differ depending on the type of bike policy you own.

But what happens in case a policyholder passes away? Here we have provided all the details you need to know about this procedure in case you ever need it!

How is the bike insurance policy transferred?

In case a bike owner dies, the ownership of that vehicle is transferred to the owner's legal heir or nominee. Similar is the case for bike insurance of that vehicle. Although, the policy must still be valid/active for this transfer. In case the bike insurance policy expires before the transfer, the heir can either renew it under their name or buy a new one.

In such a case where the policyholder has passed away, the process of transferring bike ownership and insurance involves three parties mainly:

1. Insurer: The legal heir must reach out to the insurer for a transfer of the bike policy as soon as possible after the policyholder's passing. The insurer will then be able to make the necessary modifications and transfer the bike insurance online or offline in the heir's name. Doing this at the earliest will make it easier to use the vehicle and overcome any obstacles in a timely manner, if necessary.

2. Regional Transport Office (RTO): To get the bike ownership transferred, the legal heir/nominee must visit the RTO where the vehicle has been registered. If there is an active loan on the bike, they could need a NOC (No Objection Certificate) from the respective loan provider.

Depending on the situation, you may require various documents such as the current RC, the death certificate, the Pollution Under Control (PUC) certificate, Form 31, the insurance policy, the heir's proof of identity and address, and so on.

3. Legal heir/Nominee: The legal heir is the candidate identified in the policy's details. The process is typically simple and convenient if it is described in the bike policy document.

The policy is given to the natural legal heir, who, in the case of a married person, would be their spouse if there is no mention of a nominee. In the majority of cases, the nominee is the spouse. The child is the natural successor in cases of single parents. The existing laws and due process must be followed in order to determine the heir in cases when there are multiple children.

Keep all documents handy for a seamless and trouble-free bike insurance transfer. One can also consult a lawyer if one wishes for a smoother procedure.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.