For a lot of people, a two-wheeler is quite a standard mode of transportation. You will find millions of scooters, mopeds, and motorcycles running on the Indian roads every day.
In India, people purchase a bike as per their convenience and the changing trend in the motor industry. Many people tend to invest in buying a new motorcycle; whereas others choose to buy a second-hand bike. Whether you are purchasing a new or second-hand bike, having two-wheeler insurance is essential.
When you purchase a new bike, you also need to buy new bike insurance with it. However, if you are purchasing a second-hand bike, you will have to get the existing insurance policy transferred under your name.
Once the transfer of bike ownership is completed, you will be required to transfer the bike insurance policy under the new owner’s name.
As a matter of fact, it is the responsibility of the buyer to get the insurance policy transferred under their name within 14 days of purchasing the bike. Failing to do so will lead to the rejection of any claims made. You (the seller) can help the buyer in the transfer process as you will be held responsible for any claims faced by them until the policy is transferred.
The transfer of the bike insurance policy is quite straightforward. First, inform the insurance provider about the sale of the bike. Further, you will be requested to submit certain documents to the insurer for initiating the transfer process. It includes:
The new RC book of the bike (consisting of the name of the new owners). In case the new RC book is unavailable, the proof of bike ownership is requested. Later, once the RC book is available, it should be immediately submitted to the insurance company
The original policy bond
Address proof of the new owner
Passport-sized photos of the new owner
Once the transfer requested and the necessary documents are submitted, the insurance company will initiate the transfer process. In some cases, the bike is examined. Also, a fee is required to be paid for completing the transfer of the policy.
You (the seller) should avail the No Claim Bonus Certificate from the insurance company. This way, the accumulated bonus can be retained under your name. If the requested documents are submitted and the transfer charges are paid, the bike insurance policy is transferred under the new owner’s name.
Usually, the transfer of the policy process should be initiated within the 14 days of selling the bike. If you fail to transfer the bike insurance policy to the new owner, then the third-party cover terminates. In that case, the new owner will either have to buy bike insurance online or in-person (as per their convenience).
Like we previously mentioned, the process of transferring the policy is a significant concern for both the parties involved. However, it is beneficial to transfer your bike insurance instead of buying a new policy. And here’s why -
If you have not made a single claim throughout your policy term, then the No Claim Bonus entitles you for a discount. NCB in bike insurance earns you the benefits of premium discounts on your next policy term. Now, if you sell your bike during the policy tenure and fail to transfer the policy to the new owner, you cannot avail the No Claim Bonus Certificate and lose the benefit as well.
For instance, consider that the new owner of the bike faces any mishap or damages a person or property. If the third-party claim request is raised on the bike insurance policy and the policy is still under your name, then you will be legally liable. Even though the insurance policy covers the damage incurred, you will have to make sure the claim is settled. Hence, transferring the plan to the new owner of the bike frees you from all the future liabilities related to the vehicle.
If you are buying or selling a second hand bike, it is also important to know how to transfer bike ownership. Here’s an overview of the steps to follow:
If you are planning to sell your bike, you first have to inform the state RTO in which your bike is registered regarding the sale. They will help you do the needful and transfer the ownership of your bike. However, the RTO will request you to submit certain forms and paperwork. It includes:
Form 28 (transfer of ownership)
Form 29 (No Objection Certificate) – needs to be signed by you (the seller)
Form 30 (Application for intimation of transfer/ report of transfer) – needs to be signed by you (the seller) as well as the buyer. Also, attach a copy of the chassis of your bike when submitting this form
Copy of your bike insurance policy
In case the registration of the bike is with the RTO of one state, and the sale is happening in another state, filing a NOC from the registered RTO is necessary. If the bike is taken on loan and being sold before repaying the loan, then a NOC from the lender is required.
If the owner of the bike dies, after which the bike is on sale, additional paperwork will be requested. It includes:
Death certificate of the owner
An affidavit from the successor
Also, a registration fee will be required when transferring the ownership. The charges are to be paid when submitting the necessary paperwork.
Once the required documents are submitted, the process of ownership transfer is initiated, and your bike will be legally transferred to the buyer. The transfer process is likely to be initiated within 14 days from the date of sale of the bike. But in case the buyer resides in another state, the transfer should be initiated within 45 days of the sale of the bike.
Before making a sale of your bike or before buying a second-hand bike, it is thus necessary to understand these two processes. Also, if the policy has terminated after you make the purchase, make sure that you renew bike insurance before riding the vehicle.
Then get in touch with us at Finserv Markets. With Two Wheeler Insurance at Finserv MARKETS, you can benefit from features such as affordable premiums, 24x7 assistance,bike roadside assistance, cashless claim services at any of the network garage, hassle-free renewals, swift claims, and so much more.
So, why wait? Get a Bike Insurance at Finserv MARKETS, right away!
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