How You Can Transfer Bike Insurance
Two-wheelers are the smartest ways of commuting through the traffic on Indian roads. It is a cost-effective way to travel compared to cars. However, when you travel by bike, you may be more vulnerable to road accidents. Therefore, it is vital to get your two-wheeler insured. Having robust insurance coverage will ensure that you have enough financial protection against the losses you may incur arising from accidental damage and other hazards.
As per the Motor Vehicles Act, 1988, it is mandatory for all two-wheeler owners to have a valid third-party insurance cover. And, although people comply with the law and purchase a policy, most of them have no clue what to do with their insurance policy when they sell their bike or transfer the ownership.
When you sell your bike or transfer its ownership, you must also transfer the insurance policy to the new owner. Transferring the insurance requires you to follow a specific process. The first step is informing the RTO (Road Transportation Office) about your sale or ownership transfer of the vehicle.
Once you inform the RTO, follow the below steps to complete your two-wheeler insurance transfer.
• When you transfer your bike insurance, the policy must be transferred in the name of the new buyer, i.e., the transferee.
• The transferee must apply in writing to the insurance company within a specific time along with the necessary documents to prove the vehicle delivery.
• You may also need to submit other essential documents such as the copy of RC (Registration Certificate) of the bike, copy of insurance policy, and the date of registration. Once you submit the documents, the insurance company will make the necessary changes in the records and issue a fresh insurance certificate.
Benefits Of Transferring Your Insurance Policy
Many people assume that once they sell their two-wheeler, their responsibility is over. However, you may face legal complications if you don’t comply with the paperwork, especially relating to transferring insurance. If you are selling your bike for the first time, you may feel overwhelmed with the processes involved, but it is important to complete the paperwork to avoid liabilities that may arise due to the actions of the new owner.
Let us look at the benefits of transferring your bike insurance policy.
If the new owner of the vehicle causes any damage to the third-person’s property or vehicle, and you have not transferred the ownership of your insurance policy, you would be legally liable to pay for the damages incurred. So, to prevent yourself from such troubles, make sure that you transfer all the documents, including the insurance policy in the name of the new buyer.
No matter, if you have purchased bike insurance online or offline, and have not made any claims in the preceding policy year, you would be eligible to get NCB (No Claim Bonus) from your insurance company. NCB is an incentive offered to you by the insurance company for being a safe rider and making no claims. However, when you sell your bike or transfer the ownership, you must inform the insurance company about it and get a NCB certificate, which will help you get a discount on the premium when you buy a new policy later.
While selling your bike, complete the paperwork and transfer all the relevant documents to the new owner to avoid any legal hassles in the future.
Read More about:
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Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.