How To Transfer Car Insurance From One Person To Another In India

When one transfers the ownership of their four-wheeler, they can simultaneously start the transfer of their four-wheeler insurance. Once a car is bought by a new owner, the insurance of the previous owner remains invalid. This is because, according to the Insurance Regulatory and Development Authority of India (IRDAI), the name and the address on the registration certificate of the vehicle and insurance documents have to be the same in order to raise a claim. If the insurance is under the previous owner and the registration certificate of the two-wheeler is under the new owner, filing for a claim when needed will not be possible. * You can visit the official website of IRDAI for further details.

Process of getting their car insurance transferred

For the new owner to cover the damages in case of an emergency, a transfer of 4 wheeler insurance is required beforehand. If one cannot insure their vehicle, their claim might be entirely denied. For transferring their existing car insurance from one person to another, a transfer request needs to be raised with the car insurance provider. One is required to pay a transfer fee along with submitting the following documents for their car insurance transfer:

  • Form 29 or the new copy of the registration certificate
  • No Objection Clause (NOC) from the previous owner of the two-wheeler
  • New application form
  • Old car policy documents
  • No Claim Bonus difference amount
  • Inspection report

The insurance provider conducts the inspection report.

* Standard T&C Apply

Transfer of no claim bonus

When an individual is selling their car, the previous owner transfers the ownership by signing over the registration and insurance details to the new owner. However, one needs to know that the exception is that the No Claim Bonus (NCB) of the previous owner cannot be transferred to the new owner. NCB is a type of reward that insurance companies offer to the car owner if they have made no claims for a year. The NCB percentage can be utilized towards reducing the renewal premiums. The more the number of years, the more the benefits of NCB get accumulated. When one is buying or selling their four-wheeler, it is important to remember that NCB cannot be transferred. * You can visit the official website of IRDAI for further details.

The responsibility of transferring car insurance

According to Section 157 of the Motor Vehicles Act of 1988, the seller of the four-wheeler is responsible for transferring their four-wheeler insurance to the new car owner. The transfer of the insurance needs to be carried out within 14 days of the sale of the car. The third party car insurance is automatically transferred and activated for the first 14 days after the purchase of the car. However, the comprehensive car insurance is activated only after the policy has been transferred to the new car owner from the previous one. If the transfer of insurance is not made within 14 days from the date the car was sold, from the 15th day on wards, the third-party cover will no longer exist. Also, when one gets the insurance transferred it is good to use a car insurance premium calculator to check if they are getting their money’s worth. If they are not satisfied with the current insurance provider, they can change accordingly. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.