How To Transfer Car Insurance To New Owner

03 June 2019

Everything you need to know about transferring car insurance

The market for second hand vehicles is extremely large in India. Many new riders and drivers often prefer to drive a used vehicle so as to prevent any major damages arising due to accidents when one has just begun to drive. Yet others find second hand cars much more affordable than brand new ones. It is therefore not common for people to own used vehicles any more. However, when one purchases a second hand car one needs to look for more than just the price of the car and its make and model. While the new owner gets possession of the car’s registration documents, he must also pay attention to the car insurance policy purchased by the previous owner and get it transferred to his/her name. Let’s find out everything about how to transfer car insurance.

Transferring car insurance

Driving without insurance is a punishable offence according to the Indian Penal Code and the Motor Vehicle Act of 1988. Once you choose your vehicle, you shift your concentration on transferring the vehicle registration documents to your name. But, as a new owner of the car, you must pay as much attention on the transfer of the car’s insurance.

How to transfer car insurance from one person to another

Once you finalise the vehicle of your choice, you must begin with both, the process of transferring the ownership of the car along with transference of car insurance. Both processes should work in tandem. As soon as the car’s ownership is transferred to your name, the previous owner’s car insurance policy becomes invalid if the transfer is not done at the same time. As per the laws laid down by the Insurance Regulatory and Development Authority of India or IRDAI, A vehicle insurance claim can be filed only if the name and address on the vehicle registration documents match with those on the insurance documents. If the vehicle is in an accident, the new owner of the vehicle can recover the cost of damages. In case the vehicle is uninsured, the claim can be rejected. Let’s find out how to transfer car insurance to new owner.

• The insurance transfer process is rather simple. The new owner of the car can initiate the transfer process on his own or get in touch with his insurance agent to complete the process.
• The new owner of the vehicle simply has to provide the below mentioned documents and apply to the insurance provider to change the name on the insurance policy. The documents required include:
  • Application to change the title of the insurance with form 29
  • The new insurance application form
  • The original insurance certificate
  • The new copy of the registration certificate featuring the name of the new owner of the car, also known as the transferee of the insurance
  • No objection certificate or NOC from the previous policy holder
  • The difference amount certificate in case of no-claims bonus
• Along with these documents, the new owner of the car must also submit a transfer fee of ₹50. Additionally, the insurance company may conduct an inspection of the car and prepare a report for the same.
• Once the documents are submitted, the insurance provider may also permit the new owner of the vehicle to request certain changes in the features of the policy.

You also need to remember that if the insurance is not transferred within the stipulated time, the insurance policy may be rendered void and the insurance provider is not obligated to provide any refunds or discounts.

The role of the no claims bonus

Apart from knowing how to transfer car insurance, one must also be aware of the fact that they can benefit from the no-claims bonus. Whether the policy is transferred from one person to another or from one insurance provider to another, the previous owner of the insurance policy can provide the NCB retention letter to the insurer and avail discounts on his insurance premiums.

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