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Transferring Ownership of Bike Insurance: All You Need to Know

By Prabhat Singh - Jun 15,2022
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The automobile sector today has become robust, especially the two-wheeler segment. Several new bikes launch every month, and it glues the spectators to guess about the latest updates. While the market examines new launches, the secondhand two-wheeler segment has made its own place. 

On every occasion, when someone wants to buy a new moped or bike, the old one goes on sale. It has now become a common practice, and it is mutually beneficial as well. The owner gains the money, which later gets utilised to buy a new vehicle, and the buyer has the bike at a lower price.

Selling old two-wheelers is more complicated than it seems. All the paperwork involved causes a lot of confusion. One of the biggest dilemmas is the transfer of insurance. Experts suggest that more than indecision, it is a lack of information about why you should transfer insurance and how to do it.

Thus, we thought to settle this confusion once and for all. Here is what, why and how of transferring bike insurance

Transfer of the Ownership of Bike Insurance 

When you transfer ownership of your bike, one of the crucial things to do is move the essential documents in the name of the new owner, and one key document is the vehicle insurance. Often, the second owner claims the expense for the damage control, and the insurer rejects it because the policy still belongs to the first owner. 

The vital thing to remember while filing a claim is the Registration Certificate (RC), and the insurance policy must contain the same name. Failing to do so will result in the rejection of your claim. Hence, it is necessary to transfer the insurance or else get ready to bear the repair cost. 

Essential Documents Required 

Before we go into exploring the steps of how you can transfer the insurance plan, here are all the required documents you need to have during the policy transfer: 

  1. Original Certificate of registration (RC) 
  2. Original papers of the vehicle 
  3. Pollution Under Control (PUC) certification 
  4. Actual bike or scooter insurance policy 
  5. Address proof 
  6. Date of birth (DOB) proof of the purchaser 
  7. No objection certificate (NOC) signed by the previous policyholder 
  8. Date of transfer of ownership 
  9. Pan or Aadhar card 
  10. Driving license  

Steps of Insurance Ownership Transfer 

After you have transferred the ownership of your scooter or bike, the next step is to transfer the insurance ownership. Here are all the things to follow for a seamless transition;: 

  1. To initiate the process, inform the insurance provider within 15 days (about 2 weeks) of selling your vehicle. The ideal practice must be to notify the insurer as soon as you sell the automobile
  2. Keep all the necessary documents like the RC, original insurance policy, PUC etc., handy. (Kindly refer to the sections of the required document that are mentioned above)
  3. In addition to all the documents, do not forget to attach forms 29 and 30 and the actual sales proof of ownership transfer
  4. The insurer will send someone to inspect the vehicle to determine its current state 
  5. After the inspection, you will have to pay the nominal charges for the transfer of ownership
  6. Once the verification is completed, the policy belongs to the new owner

Benefits of Transferring the Ownership of Bike Insurance 

Transferring insurance is not only a necessity, but it provides some advantages for the owner as well. Read on to know:

  1. Protects from Legal Liability – In the case of accident or injury caused by the new owner to a pedestrian or rider, the person who has the ownership of the insurance will be help legally liable for the damages. Thus, it is highly crucial to move the possession of the vehicle and insurance with it as well. 
  2. No Claim Bonus (NCB) – It is evident that you cannot transfer the NCB bonus with the transfer of the ownership of the policy. In that case, what happens to that no-claim bonus? You can use it to get a new insurance policy for your new vehicle at a lower premium. Beneficial, right? 

So, always remember to refer to the what, why and how of transferring insurance ownership every time you sell or buy a used vehicle, and you will be safeguarded against any potential financial losses.


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522