Know how to transfer your two-wheeler insurance policy to a new owner
Due to the constant upgrades in most two-wheeler models, most owners decide to sell their vehicles and purchase new ones. As per the latest report by the National Family Health Survey, about 49.7% of Indian households own a two-wheeler. Further, the two-wheeler market is expected to witness sales of 26.6 million units by 2025.
Upon selling an old bike, individuals must transfer their insurance policies to the new owner's name to avoid legal hassles.
Steps to transfer the two-wheeler insurance policy
When an individual sells his/her old two-wheeler to purchase a new one, the first essential step is to transfer the ownership of the old vehicle and insurance policy in the name of the new owner. This is followed by informing the respective Regional Transport Office (RTO) about the vehicle's sale.
That said, a bike insurance transfer process is relatively convenient. One can simply follow these steps:
Step 1: Apply for transfer of two-wheeler insurance within 14 days of vehicle ownership transfer. Inform the insurer about the transfer of ownership as soon as possible.
Step 2: Submit necessary documents, such as Registration Certificate (RC), insurance paperwork, documents highlighting vehicle ownership transfer, policy premium payment history, and sale deed of vehicle.
Step 3: Both buyer and seller would be asked to submit KYC documents, such as PAN card, driving license, and Aadhaar card.
Step 4: Some insurance companies might inspect the vehicle before ownership transfer.
Step 5: Upon verification, the insurance company transfers the policy benefits to the new owner.
Note that the new owner will have to purchase a new insurance policy if he/she initiates these steps post 14 days of second-hand vehicle purchase.
Documents required for transfer of bike insurance policy
To apply for an insurance policy transfer to the new owner, individuals need to furnish a few essential documents, such as:
- Vehicle's registration certificate
- Form 28, 29 and 30
- Insurance policy details
- Vehicle's sale deed
- Ownership transfer documents
- Premium payment history of one's insurance plan
- No Objection Certificate (NOC) from the previous owner
- Passport-sized photograph of buyer and seller
- Address proof of buyer and seller
Benefits of transferring the two-wheeler insurance policy for the seller
While the benefits of transferring a two-wheeler insurance policy are evident for a buyer, a seller might be of the notion that he/she will not gain from this process. However, this is not true.
When a seller opts for a two-wheeler insurance policy transfer, he/she benefits from the following:
- Legal protection
In case a new owner causes third-party damage, the insurance policy will come in handy only if his/her name is reflected in the policy document. Otherwise, the old owner will be held accountable for all the damages caused to the third party.
- No claim bonus
Individuals who have not raised a single claim during a policy term are eligible to receive a ‘no claim bonus (NCB)’. This bonus comes as a reward and can significantly help reduce the insurance premium. While transferring a policy, an individual can claim the NCB certificate, which will apply to his/her next insurance policy. This will assist one in keeping his/her NCB benefits intact.
Further, to maximise benefits after purchasing a new two-wheeler, individuals can consider purchasing a two-wheeler insurance policy from Bajaj Finance.
Benefits of purchasing a two-wheeler insurance policy from Bajaj Finance
Purchasing a long-term insurance policy for your two-wheeler will have the following benefits:
- One can extend this plan for more than three years with minimum impact on the third-party premium amount.
- This policy comes withown damage cover, which provides complete protection against any injury, harm or damage caused to a policyholder.
- With every claim-free policy year, policyholders can acquire additional benefits in the form of NCB.
- This two-wheeler insurance package also covers optional extensions, including legal liability to cleaner, paid drivers or any other workman, loss of accessories, personal accident cover, and more.
- It is a comprehensive two-wheeler insurance policy, providing extensive personal damage cover and third-party coverage benefits.
- It also covers injuries sustained by a policyholder in case of an unforeseen road mishap.
Considering the benefits of bike insurance policy transfer, individuals must not delay initiating this process. Furthermore, if you are planning to buy a new vehicle, you can look for comprehensive bike insurance plans offered by Bajaj Finance Limited online. So that you continue enjoying extensive coverage benefits and stay on the safe side of the law.
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