By When you decide to sell your two-wheeler, it is very important to make sure that along with the ownership of the bike, even the name on the insurance policy is transferred at the right time. Failing to do so, can land you in a lot of legal trouble if the new owner of the bike gets into an accident when the two-wheeler insurance is still in your name.
However, if you are new to the world of insurance, performing a bike insurance transfer can be quite confusing. Nonetheless, to get more clarity on this topic, you would need to first understand the documents and the details that you would require for an insurance transfer.
So, here’s a list of the required documents and details –
- Bike’s registration certificate
- Bike details like model year, the number of kilometres driven, etc.
- The original insurance policy
- Date of ownership transfer
- The dealer’s name
- Details of the premium of the original policy
- No Objection Certificate from the previous insurance policyholder
- Personal details of the buyer and seller like PAN or AADHAR Card details, Driving license and Contact details
Next, let us understand the step-by-step process of transferring the insurance policy –
Step 1
Initiate the procedure of insurance transfer within 15 days of new ownership. As a general rule of thumb, do it at the same time you start the process of transferring the bike’s ownership.
Step 2
Submit the required documents and provide correct details to the insurance company about both the concerning parties.
Step 3
Provide valid KYC documents of the buyer and the seller. Do keep in mind to keep a record of the insurance transfer just how you would maintain a record of the bike’s ownership transfer.
Step 4
Keep track of the transfer process. It can take 7 to 14 working days for the insurance transfer to be completed after submission of the documents and payment of the transfer fee.
It is commonly known that getting the bike insurance transferred to the buyer helps you avoid unwanted legal hassles in the event of an accident. However, there are a few more benefits to timely transfer of the bike insurance for the seller. You can –
- Protect your NCB – You can apply for a no-claim bonus transfer certificate from your existing insurer and avoid losing the discount that you have accumulated on your bike insurance premium.
- Enjoy peace of mind – If the new owner of the bike gets into an accident before the transfer of the insurance is done, the seller is still going to be held accountable for the incident as the name on the insurance has still not changed. To avoid this, it is in the best interest of the seller and the buyer to get the insurance transferred as quickly as possible.
We hope this article has cleared the confusions you might have with regards to a 2 wheeler insurance transfer and that you are now equipped with the right information to go through the process. All the best!
