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Bike insurance is needed to protect your finances and ensure legal compliance. When buying or selling a used bike, transferring motor insurance is an important step that should be completed.
This guide covers the importance of transferring bike insurance, the steps involved, the required documentation, and important considerations that make the process easy and smooth.
Why is it Important to Transfer Bike Insurance?
Transferring motor insurance is an important step in the sale or purchase of a used motorcycle, ensuring both legal and financial protection for the new owner.
Here’s why:
Legal Compliance: Transferring two-wheeler insurance to the new owner is often a legal requirement. Riding with insurance under someone else’s name may lead to fines, penalties, or other legal complications.
Financial Protection: Without transferring the insurance, the new owner may be without coverage if an accident or theft occurs. This could mean costly out-of-pocket expenses for repairs and/or damages.
How Can You Transfer Bike Insurance?
Transferring bike insurance can be done in a few simple steps:
Contact Your Insurer: Notify your insurance provider about the sale of your bike and request a transfer of the two wheeler insurance policy to the new owner.
Submit Required Documents: Provide the necessary documents to facilitate the transfer.
Complete RTO Formalities: Ensure that the Regional Transport Office (RTO) paperwork is completed for ownership transfer.
Finalize the Transfer: Once the documents are processed, the new owner will receive a revised insurance policy.
Documents Required to Transfer Insurance and Ownership
To successfully transfer bike insurance, both the seller and buyer must gather the following documents:
Original Bike Insurance Policy Document: This includes all relevant details about the policy.
Registration Certificate (RC): The RC of the bike needs to be in the name of the seller for the transfer to be valid.
Identity Proof: A valid ID proof of both the seller and the buyer.
Address Proof: Proof of residence for both parties.
RTO Documents for Bike Ownership Transfer
The following RTO documents are necessary for transferring ownership:
Application Form 28: No Objection Certificate (NOC) for inter-state transfers.
Application Form 29: A notification of transfer of ownership.
Application Form 30: An application for intimation and transfer of ownership.
Insurance Certificate: Valid insurance policy document.
Pollution Under Control (PUC) Certificate: Proof of compliance with pollution standards.
The Bike Insurance Transfer Process
Notify the Insurance Company: Contact your insurer to initiate the transfer process. They may require specific forms and information about the new owner.
Fill Out Required Forms: Complete any forms provided by the insurer.
Submit Documents: Provide the necessary documentation as outlined above.
Pay Transfer Fees: Some insurers may charge a nominal fee for the transfer of the policy.
Receive Revised Policy: Once processed, the insurance company will issue a new policy document in the name of the new owner.
No Claim Bonus Certificate
A No Claim Bonus (NCB) is a reward offered by insurers for not making any claims during the policy period. It can lead to significant discounts on future premiums. If the seller has an NCB, they can request an NCB certificate to transfer this benefit to the new owner. This can help the buyer save on future bike insurance costs.
By transferring the bike insurance, the original owner can retain their No-Claim Bonus, which provides discounts on future premiums.
For more information on No claim bonus, read this blog!
Why is the Transfer of Bike Insurance Required?
Transfer bike insurance online serves several purposes:
Financial Protection: It ensures that the new owner has continuous insurance coverage.
Claims Process: In case of an accident, only the policyholder can file a claim, protecting both parties.
Legal Compliance: It prevents penalties or legal issues arising from having an invalid insurance policy.
How to Transfer Insurance for Second-Hand Bikes?
For second-hand bikes, the process is similar:
Verify the Existing Insurance: Check the validity and coverage of the existing policy.
Obtain the NCB Certificate: If the seller has an NCB, request the certificate.
Follow the Transfer Process: Notify the insurer and complete the necessary forms and document submission.
Also Read: How to Check Details about Bike Insurance?
Things to Keep in Mind for a Seamless Second-Hand/Used Vehicle Insurance Transfer
Check for Pending Claims: Verify that there are no unresolved claims on the vehicle's insurance policy. Pending claims can complicate the transfer process and may lead to delays or affect the new policy terms.
Initiate Transfer Promptly: Begin the insurance transfer process as soon as the ownership change is initiated. This prevents any coverage lapse, ensuring that the vehicle remains protected and compliant with legal requirements.
Understand Policy Terms and Coverage: Carefully review the existing insurance policy terms. Check for coverage details, add-ons, and exclusions, as these may differ from the coverage you want under your ownership.
Get a Vehicle Inspection: Some insurers may require a vehicle inspection to assess its condition before transferring the policy. This step helps to avoid disputes about pre-existing conditions or damages in case of future claims.
Update Contact and Ownership Details: Ensure that all relevant documents reflect the new ownership details, including name, address, and contact information. This prevents administrative issues and ensures you receive notifications for policy renewal or claims.
Also Read: 5 Reasons Why Your Two-Wheeler Insurance Is More Valuable Than You Think
Conclusion
Transferring bike insurance online is an important step in the sale and purchase of used bikes. By following the outlined steps and gathering the necessary documentation, you can achieve a smooth transition. Remember, completing this process fast is essential to avoid legal complications and ensure uninterrupted coverage for the new bike owner.
For those seeking reliable bike insurance solutions, consider SBI General. We offer a range of coverage options and excellent customer support, making the insurance transfer process straightforward and hassle-free.
Frequently Asked Questions
Q1. Can third-party insurance be transferred?
Yes, third party insurance can be transferred to the new owner when the bike is sold. This ensures the new owner remains legally protected under the mandatory third-party liability coverage.
Q2. How soon should I initiate the process of bike insurance transfer?
You should start the insurance transfer process within 14 days of the ownership transfer to prevent coverage lapses and legal issues. A prompt transfer also protects both the buyer and seller from liabilities.
Q3. Can I transfer RC without insurance?
No, a valid insurance policy is required to complete the Registration Certificate (RC) transfer. Most RTOs will not process the RC transfer without proof of active insurance coverage on the vehicle.
Q4. How much does it cost to transfer bike ownership?
The ownership transfer fees are generally nominal, typically ranging from ₹30 to ₹35 at the RTO, with an additional cost of around ₹200 if a new smart card RC is issued. Total costs vary slightly by state.
Q5. Is NOC required for bike ownership transfer?
Yes, if the bike is being transferred to another state, a No Objection Certificate (NOC) from the current RTO is required. This document confirms that there are no pending dues or issues with the bike's registration.
Q6. Can I transfer the NCB benefit to the buyer?
No, the No-Claim Bonus (NCB) is linked to the policyholder, not the vehicle, and therefore it cannot be transferred to the buyer. The seller can retain the NCB for discounts on future insurance policies.
Q7. Can we get NOC from RTO online?
Yes, in many states, the RTO allows applicants to request and download the NOC online via their official transport websites. This can simplify and expedite the process, though availability varies by region.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.
