How to Transfer Car Insurance
Cars have become a blessing that allows you comfort and the convenience of travel. With new better models coming in every month, you may be tempted to buy a new car and sell your current one under the second-hand selling process. However, deciding to sell your old car does not end with finding a buyer and transferring the ownership. One of the most vital parts of selling or buying an old car is to ensure the successful car insurance transfer.
As it is mandatory by law that you must have third party car insurance, a buyer or a seller must prioritise the car insurance transfer after buying/selling the car. However, the transfer process can be a little troublesome if you do not know the detailed process.
The need for car insurance transfer
A car insurance policy is necessary to protect against the eventualities on the road and ensure the expenses don’t create a financial burden. Now that you have decided to sell your car, there is no applicability to the car insurance policy attached to your current vehicle.
Furthermore, you should look to transfer your car insurance policy to the new buyer because of the following two reasons:
-
Third-Party Liabilities:
If you sell your car second hand without transferring the car insurance, the authorities may hold you liable to pay for the damages if the new owner meets with an accident as you are still the owner of the vehicle. For the first 14 days, the car insurance gets automatically transferred to the new owner. However, you must officially transfer the car insurance within 14 days as the own damage cover ceases to exist from the 15th day. Furthermore, if you have purchased a second-hand car, you won’t be able to file a third party claim in case of an accident if you did not transfer the car insurance policy to your name. -
Retain No-Claim Bonus:
The insurance company offers discounts on car renewable insurance premium for every claim-free year. If you are thinking of selling your car, it is wise that you transfer the NCB from your old car insurance policy to the new one. To successfully transfer the NCB to your new policy, you must transfer the car’s ongoing car insurance to the new owner.
The Rates for No-Claim Bonus
| Claim-Free Years | Rate |
|---|---|
| 1 | per cent |
| 2 | 25 per cent |
| 3 | 35 per cent |
| 4 | 45 per cent |
| 5 | 50 per cent |
How to Transfer Car Insurance: The Process
It is the owner’s responsibility that he/she must transfer the car insurance policy to the new owner. For doing so, here is the detailed car insurance name transfer process by which you can transfer car insurance online:
- Visit the RTO Website and download Form 28, Form 29 and Form 30
- After filling the forms, submit them to the RTO.
- Take the clearance certificate from the RTO for the submitted forms.
- Submit all the documents (mentioned below) to the insurance company.
- Pay the transfer fee of Rs 50.
After completing the steps mentioned above, you have to submit the following documents with the insurance company to complete the car insurance transfer process:
- Original RC of the vehicle.
- Clearance Certificate/Receipts of the submitted forms 28,29, and 30.
- Address proof of the new buyer.
- Passport size photographs of the new buyer.
- The policy document of the ongoing car insurance policy.
- Inspection report of the vehicle after the completion of the inspection process of the insurance company.
The second-hand car market in India stood at $21.04 billion in the year 2018-19. Furthermore, with gross direct premiums of INR 59,246.11 crore, the car insurance business in India grew by 8.91% to account for 38.08% of the total non-life insurance business in India. It depicts how an increasing number of owners are investing in a comprehensive car insurance policy to ensure protection against any eventuality and car damages. If you are considering buying an ideal, suitable and customised car insurance policy, you can consult the insurance experts at PINC Insurance .