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The process of transferring the ownership of your bike’s insurance policy to the new owner must be processed within 14 days of the sale of the vehicle. This should be done by submitting all the relevant documents and the insurance related transfer forms to the insurance company.

 

India is one of the biggest markets for two-wheelers in the world. Bikes are more favoured considering the heavy traffic on Indian roads. It is easy to park and navigate through traffic and is fuel efficient. Most consumers tend to sell their old bikes and buy new ones since two-wheelers get modified with better technology for more convenience on Indian roads. As a result, bike insurance transfer becomes necessary. The buyer must receive the previous vehicle's insurance once the deal gets finalised. If you don't, you could be held liable for any mishaps or damage to the bike in the future.

 

The process of bike insurance transfer online is simple. The bike insurance transfer process is considered successful only if the name on the bike's insurance policy is changed to the new owner. When purchasing or selling a used two-wheeler in India, one must carry out its transfer of insurance and go through the process. If the bike insurance policy is transferred, you must duly notify the insurance company.

Documents Required for Bike Insurance Transfer

Here is the complete list of transfer of insurance for a two-wheeler, name transfer forms, and other documents needed for the bike’s insurance transfer process.

  • Registration Certificate of the two-wheeler

  • Original insurance policy

  • Forms 28, 29, and 30

  • Sale deed of the two-wheeler

  • Paperwork of ownership transfer

  • Insurance policy premium payment history

  • No Objection Certificate (NOC) from the previous owner

  • Address proof of the buyer

  • Buyer’s passport size photograph

Documents Required for Transferring Bike Ownership in Case of the Owner's Death

If you wish to transfer the ownership of a bike in case its owner dies, following documents will be required:

  • Form 31

  • Registration certificate of the vehicle

  • Insurance certificate of the vehicle

  • Death certificate of the dead owner of the vehicle

  • A pollution control certificate of the vehicle

  • PAN card and Form 60 of the vehicle’s new owner

  • Chassis and engine of the vehicle are pencil prints

  • Date of birth certificate of the new owner of the vehicle

  • Address proof of the new owner of the vehicle 

  • R.C. book of the vehicle

  • Vehicle’s new owner’s passport size photographs

  • Document showing the relationship of the dead owner with the new owner

  • Individual’s signature who sold the vehicle

  • Form 20 containing the information regarding the bike’s verification should be completed and returned

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Process to Transfer Bike Insurance

If you are looking for ways to understand how to transfer bike insurance from one person to another, don’t worry. Follow the steps mentioned below for an easy bike insurance transfer online:

  • Within 14 days of the official transfer of two-wheeler ownership, you must apply for transfer of two-wheeler insurance with the insurer through their official website.

  • A bike insurance transfer requires a few specific pieces of paperwork. Make sure you have the following papers with you at all times: RC, documentation stating the date of ownership transfer, the original insurance policy paperwork, the name of your dealer, and the history of premium payments for the insurance policy.

  • KYC documents from both the owner and the buyer are essential. To keep a record of this transfer, carry your PAN card, Aadhaar card, driver's licence, and other official documents.

  • You may extend the coverage if you add the name of another vehicle to the current policy as the seller. Since the pro-rata equation is used, it may cause the premium rate to vary.

  • During the transfer of the two-wheeler’s insurance, the seller must provide proof of third-party bike insurance so that future premium estimation can be done for the plan.

 

However, you do not necessarily have to forfeit your collected No-claim Bonus just because you are selling your bike. Give your insurance company your NCB certificate to receive enticing savings on the rates you must pay for the new bike's policy.

 

If 14 days have gone after the transfer of ownership, the buyer of a used bike must get new insurance coverage for the bike they have purchased. This is because the existing third-party insurance coverage will expire after 14 days following the transfer of ownership.

Benefits of Bike Insurance Transfer

While a new bike owner will undoubtedly benefit from such a move, the seller may feel they stand to lose. When you transfer an insurance policy for a two-wheeler, there are many benefits involved, that include - 

1. Protects Against Future Litigation Issues - 

If the new owner crashes your old bike, an insurance policy will start paying once the new owner's name is listed on the policy documents. A bike insurance transfer makes it easy to avoid these hassles, whether they are related to the financial side or the legal obligations.

2. No-claim Bonus for the New Policy - 

You are entitled to a No-claim Bonus, or NCB, if you avoided claiming the car's insurance before the ownership transfer. You can obtain a certificate proving your NCB eligibility during a policy transfer to secure your new bike when you buy your next insurance policy. You would forfeit the accrued NCB from this prior policy if you didn't start the official transfer process.

Bike Ownership Transfer Fees

Here’s the cost of bike’s ownership transfer:

  • The fees of bike’s ownership transfer to be paid to the RTO ranges between Rs. 30 to  Rs. 35, varying from state to state.

  • The smart card fee levied by the RTO is Rs. 200.

Bike Insurance Transfer in Various Circumstances

Here are certain things you need to keep while making a bike insurance transfer:

  • If the buyer lives in the same state, you must transfer the bike insurance ownership within two weeks to the regulatory party.

  • If the buyer lives in another state, you must transfer the ownership within 45 days and report the same to the regulatory party. 

  • If the existing owner dies during the transfer process, the buyer can report the same to the regulatory party within a month. 

What Happens If The Vehicle’s Insurance Transfer Process Isn't Complete

Vehicle insurance transfer is crucial once the sale is made. There can be serious consequences if the vehicle transfer is not completed within two weeks of the sale. Here are some of the consequences:

  • Claim rejection - You cannot raise a claim in case of theft or accident if the vehicle insurance is not transferred to your name. The court may send a notice for compensation to the previous owner of the vehicle for any loss done by the new owner. 

  • Financial implications - You will have to bear the financial liabilities if the insurance remains untransferred. Moreover, you will have to bear the financial burden if there is any accidental damage. This is because you won't qualify for the claim.

  • Fines and penalties - Driving an insured vehicle is illegal in India. So, hefty fines and penalties (as per government rules) are levied for violating this rule.

  • Legal hassles - The Motor Vehicles Act Section 157 states that sellers should transfer the insurance to the buyer within 14 days of buying the vehicle. This also includes the automatic transfer of the third-party section of the policy. You won’t be able to enjoy coverages like any add-ons or Own Damage Insurance (OD). If you fail to abide by the government rules, you will be subject to stringent legal actions, including imprisonment.

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Steps to Transfer Second-hand Vehicle Insurance

Follow these easy steps to transfer second-hand vehicle insurance:

  • The first step is to have all documents required to initiate the insurance transfer. 

  • Once you transfer the ownership, apply for a bike insurance transfer.

  • Opt for a comprehensive vehicle insurance plan. You can choose add-on covers for enhanced coverage.  

  • Submit forms 29, 30 and Sale Deed.

  • Your vehicle is assessed before the transfer of the insurance policy. 

  • Once approved, the insurance policy is transferred to the new-owner. 

Conclusion

Now, you may have understood how to transfer a bike's insurance. Generally, there is nothing wrong with always keeping a backup for unforeseen circumstances. Whether you are looking for an insurance policy for your new two-wheeler or a buyer who recently bought a second-hand bike and didn't transfer the insurance policy from the owner, you should avail of the best comprehensive insurance plans available in the market.

 

Bajaj Markets is a platform that offers various standard two-wheeler insurance plans from different insurers at lucrative costs. You can choose the one that best suits your needs and ensure you remain financially protected in the case of heavy damage to your vehicle.

FAQs on Bike InsuranceTransfer

Can bike insurance transfer be facilitated to a new owner?

Yes, the prior owner can transfer the ownership of the bike insurance to a new owner by contacting a bike insurance transfer provider and sending the necessary paperwork to the new owner.

How do I facilitate bike insurance transfer to another person?

You can trade or transfer your bike to another person by going to the RTO office where you originally registered your bike and bringing the necessary paperwork.

Can I sell my bike without RC?

Although you might be able to locate a buyer who will purchase the bike without a registration certificate, it is not wise to do so, as you risk being held responsible for any damages the bike may cause in the event of an accident. The RTO office is where you may apply for a duplicate RC.

Can you apply for bike insurance renewal online?

Yes, you may renew your bike insurance coverage online by going to your insurance provider's website and following the procedures.

Can third-party insurance cover be transferred to the new owner?

You can pass your bike's third-party insurance to the next owner. Getting the insurance moved within 15 days of the purchase date is crucial since the old insurance policy would be in effect for the first 14 days.

Can I transfer RC without insurance?

No, you can only transfer your vehicle's registration certificate (RC) to another person’s name when you have an insurance policy.

How much does it cost to transfer bike ownership?

The bike insurance transfer fee varies from state to state. Along with this payment, a smart card fee is also payable to the RTO. 

What is the vehicle insurance transfer letter format?

You can visit your insurance company’s website to download the vehicle transfer letter format application. You can also send a letter to the manager of the insurance company to initiate the insurance transfer process. Generally, in this format, you must write the vehicle number, insurance number, and to whom the insurance is being transferred. 

Can I buy a bike that does not have a valid insurance policy?

According to the Motor Vehicles Act, all bike owners must have at least third-party insurance. So, although you can purchase a bike without a valid two-wheeler insurance policy, you will have to get third-party insurance to register your bike.

Does the original owner's NCB lower the plan's premium for the new owner?

Since the NCB is offered to the insured, the new owner can only avail of its benefits after transferring the two-wheeler insurance. Hence, the NCB won't lower the plan's premium for the new owner. For the new owner, the NCB will be calculated from zero. It will gradually increase with back-to-back claim-free years.

When must the new owner of the bike submit an application for insurance transfer?

Section 157 of the Motor Vehicles Act of 1988 states that the bike seller must transfer the insurance to the new owner’s name within two weeks or 14 days of the sale. You must visit the Regional Transport Office and submit the required documents. Once the verification is completed, the insurance ownership will automatically be transferred.

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