Having an insurance policy for your vehicle is one of the mandatory requirements of driving on Indian roads. Chances are that you already bought an insurance policy while purchasing your bike. However, now that are you ready to sell it, have you considered what happens to the bike insurance policy? You obviously don’t need it since the bike is no longer yours, but you do need to safeguard yourself against any future damages that the new bike owner may accidentally incur. For that reason, the best insurance provider will always provide you with the option to transfer the insurance policy when you are transferring ownership of the bike.
Anybody who has ever ridden a bike on Indian roads knows it is a potential hazard owing to the poor conditions of roads. Insurance companies in India offer two types of policies. The difference between third party and comprehensive insurance is that, while the third-party cover is cheaper and covers only third-party damages, the comprehensive cover offers wider coverage and is hence, slightly expensive. A comprehensive insurance policy that financially protects not just you and your vehicle; but also insures you against third-party liabilities is a requisite to being safe. Accidents can happen to the best of us, and being prepared to deal with them starts with acquiring a two wheeler policy that acts as a cushion against any unforeseen events.
The Bike Insurance plan, available on Finserv MARKETS, will allow you to file claims and renew your policy online easily. With this policy, you are assured of 24×7 bike roadside assistance which includes towing facilities for your vehicle, as well as accommodation and taxi benefits for the ride.
Transferring bike ownership, along with freeing you of the responsibilities of the vehicle, also bring along certain benefits. For instance, if you have never filed a claim for the vehicle to your insurer, you become eligible to receive a No Claims Bonus (NCB), which can also result in discounted premiums for the next insurance policy you get on your new vehicle. NCB works as an incentive provided by insurers to encourage you to drive safe, not cause damages and thus not file any claims to the insurer.
If you are wondering how to transfer bike insurance from one person to another, read on below:
- The first step of transferring the bike’s ownership involves informing the Regional Transport Office (RTO) where the vehicle was registered about the sale of the vehicle. The buyer must submit an application, and then submit Form 29 and Form 30 at the Directorate of Transport Office along with documents supporting your ownership of the vehicle, including the Registration Certificate (RC), insurance, emission test, and tax paid receipts, address proof of the seller, etc. In most cases, transferring ownership of the vehicle can be done as quickly as in 14 days.
- Once the ownership of the bike has been transferred, the vehicle insurance policyholder needs to approach the insurer, and inform them of the change in ownership of the vehicle. At the same time, if you have not placed any claims in the previous year, make sure to inform your insurer of the same so your NCB can be processed. Guide the new owner of the bike to register themselves as the new owner of the existing insurance policy.
- The buyer and the new owner of the bike needs to submit a couple of proofs to the insurer, which include documents they would have received from you which prove their ownership of the vehicle. These would include the RC for the vehicle, and details of the original insurance policy as well as proof showing the date for transfer of ownership, vehicle details, the dealer’s name as well as the premiums that were paid by you while you had ownership of the bike. All these documents will have to be provided by you to the new owner of the bike, in order to begin the transfer of the bike insurance policy.
- Aside of the details regarding ownership of the vehicle and the status of the insurance policy, the new owner will also be required to submit proof of their identity which will include their driver’s license, AADHAAR or PAN card, for the insurer’s records. Once these details are verified to the insurer’s satisfaction, they will change the details on the existing policy including the name of the policyholder to reflect the transfer of ownership.
While a transfer of the bike insurance policy is quite a simple process, here’s a couple of things you should keep in mind:
- As a buyer, make sure you apply for transferring the insurance policy within 14 days of purchase of the vehicle.
- As a seller, make sure to intimate your insurer regarding the ownership and claiming the NCB you would be eligible for if you have not placed any claims within the last year. This will come in handy the next time you purchase an insurance policy for your vehicle, as you can use the NCB certificate to avail discounted premiums on your next.
- As the buyer of the vehicle, you need to go over the existing policy very carefully and ensure that all your needs are met. If not, approach the insurer and modify the terms of the existing policy including the premium amounts, additional covers, etc.
As the new owner of this insurance policy, you need to ensure that your vehicle is protected from all sorts of damages. To get an idea of what the best bike insurance policy should cover, head over to the Finserv MARKETS and view the benefits that you could avail with the least amount of effort. Some benefits you would be privy to include cover for any losses sustained to the vehicle due to natural calamities or even man-made disasters, while any other repairs or even replacements for parts that the bike might require would be covered under this comprehensive bike insurance policy. This policy allows for incredible transparency and hassle-free processes, and even allows you to renew the insurance for your bike.
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