The transfer of insurance policy papers is a must when one sells his vehicle to another person. Transferring the policy holds huge importance because if you do not do it, after the sale of the two-wheeler, the insurance company can reject a claim in the event of an accident. This is because the insurance policy does mention the name of the new owner.
So, how to transfer a two-wheeler insurance policy?
In order to transfer two-wheeler insurance, you just need to follow these 4 simple steps:
Step 1: You will be required to apply for the transfer of a two-wheeler insurance policy within 15 days of transferring ownership of your vehicle.
Step 2: Keep all documents required to transfer your bike insurance handy. For example, you need to have the ownership transfer papers, Registration Certificate (RC) of your two-wheeler, existing insurance policy, etc.
Step 3: You can submit a copy of your Aadhaar card, driver’s license, etc for Know Your Customer (KYC). Note that both the owner and the seller are required to submit the same.
It is an easy process where you can apply for a two-wheeler ownership transfer at the Regional Transport Office (RTO). You need to provide an application for transfer to the insurance company along with other documents such as the No Objection Clause (NOC) of the seller, transferred registration certificate, emission test papers, Form 29 and Form 30, inspection report which is usually executed by the insurance provider, sale deed, and old policy document. In addition to all these, you will also have to pay some amount of transfer fee. The insurance provider will pass the endorsement of the transfer upon successful processing.
Step 4: The insurance policy will get transferred to the new owner of the vehicle once all these documents are submitted.
But What Will Happen to My No Claims Bonus (NCB)?
In motor insurance, NCB is defined as a discount on premium given to the policyholders for not making a claim during the policy term.
While transferring your bike insurance policy, make sure that you are submitting the NCB certificate to your insurance provider to avail a discount on your insurance premium for the new two-wheeler.
No Claim Bonus of a policyholder will remain with him. He cannot transfer his NCB to the person he is selling his bike to. However, you can transfer your NCB from an old vehicle to a new vehicle. But you need to keep in mind that the vehicle is of the same type. In other words, NCB cannot be transferred from a bike to a four-wheeler.
So now you know the official procedure for the transfer of two-wheeler insurance. Keep in mind that whether you are buying a bike from someone or selling your two-wheeler to another person, the transfer of insurance remains important in both cases. Hence, make sure that you keep this in mind while buying a second-hand vehicle from anyone.
Meanwhile, you can click here to check out some of the best bike insurance plans online.