Transfer Bike Insurance Policy: Steps, Documents Required for Second-hand Vehicle

Two-wheelers are the most common mode of transport in India, especially when you have to travel during peak traffic hours. Two-wheelers include scooters, mopeds, and motorcycles. A large number of these vehicles run on Indian roads daily. People in India buy and sell bikes based on their changing needs and the changing trends in the two-wheeler industry. While most of them buy a new two-wheeler, many of them also purchase a second-hand vehicle. When buying a new bike, you need to get bike insurance online or offline. But when buying a second-hand bike or selling your used bike, you need to get the existing insurance policy transferred to the new owner of the vehicle.

Why is Bike Insurance Transfer Beneficial for Sellers?

Bike insurance transfer is beneficial for sellers because it allows them to transfer the remaining insurance coverage for their bike to the new owner. This can be, especially, useful for sellers who have a significant amount of coverage remaining on their policy, as it can save the new owner from having to purchase a new policy or pay for additional coverage. Additionally, by transferring insurance coverage, the seller can ensure that the new owner is protected in case of an accident or theft. One of the main advantages of bike insurance transfer for sellers is that it can increase the value of their bike. If a potential buyer knows that the bike has remaining insurance coverage, they may be more likely to buy the bike, as they won't have to worry about purchasing a new policy or paying for additional coverage. This can make the bike an attractive deal to the buyers and may even allow the seller to charge a higher price for the bike. Lastly, it can also be a good way for sellers to clear their conscience by providing a sense of security and peace of mind to the new owner.

What Are the Required Documents for a Bike Insurance Transfer?

The documents required to transfer two-wheeler insurance are:

1. RC (Registration Certificate)
2. Details of the vehicle
3. Original insurance policy
4. Date of ownership transfer
5. Name of the previous owner
6. Details of the premium paid for the original policy
7. NOC (No Objection Certificate) from the previous policyholder
8. Personal details of the buyer & seller:
9. PAN or AADHAR Card
10. Driving license
11. Contact details

The transfer process allows you to retain the accrued No-Claim Bonus that you may lose while transferring the bike insurance plan to the new owner. Then, you can transfer the bonus to the new policy that you buy.

Things to Consider for a Seamless Second-Hand/Used Vehicle Insurance Transfer

When selling a two-wheeler, transferring the insurance policy to the new owner is essential. Here’s a quick guide to ensure a seamless bike insurance transfer process:

Timeline:

In India, it's mandatory to transfer bike insurance within 14 days of ownership transfer. Delaying the process can lead to complications and potentially leave the new owner without proper coverage.

Policy Type:

Only the third-party liability portion of the policy gets automatically transferred during ownership transfer. The new owner will need to purchase additional coverage (own damage) if desired.

Documents Required:

Gather necessary documents like the Registration Certificate (RC), insurance policy documents, proof of sale, and KYC documents (PAN card/Aadhar card) of both buyer and seller.

What Are The Steps To Transfer A Two-Wheeler Insurance Policy?

To transfer the two-wheeler insurance policy, the buyer must follow the steps mentioned below:

1. Apply for insurance transfer of the two-wheeler you have purchased within 14 days of the purchase of the same.
2. Choose the two-wheeler insurance plan which can fulfil all your requirements.
3. Fill up the proposal form and clearly mention the details regarding the transfer of ownership.
4. Submit all the documents mentioned above to the insurance provider.
5. Also submit Form 29/30/Sale deed along with the necessary documents.
6. The insurance company will send an investigator, who will create the inspection report.
7. A nominal transfer fee also must be paid for transferring the two-wheeler insurance policy.
8. Once everything is verified by the insurance provider, the two-wheeler policy will be transferred to your name.

FAQs

1. What is bike insurance transfer? 

Bike insurance transfer is the process of transferring the remaining insurance coverage on a bike from the seller to the new owner.

2. How does bike insurance transfer work? 

The process of bike insurance transfer typically involves the seller contacting their insurance company to inform them of the sale and providing the new owner's information. The insurance company will then transfer the coverage to the new owner.

3. Is there a fee for bike insurance transfer? 

Some insurance companies may charge a small fee for bike insurance transfer, while others may provide this service for free. It is best to check with your insurance company to determine their specific policy.

4. How long does a bike insurance transfer take? 

The time it takes to complete a bike insurance transfer can vary depending on the insurance company, but typically it should take a few days.

5. Do I need to inform my insurance company if I sell my bike? 

Yes, it is important to inform your insurance company if you sell your bike for the insurance coverage to be transferred to the new owner.

6. How to transfer insurance to a new owner? 

Contact your Insurance Provider: Inform your insurer about the sale and your intent to transfer the policy. Submit Documents: Provide the required documents to your insurer. They might guide you through the specific steps involved. New Owner Coverage: The new owner will need to contact the insurer to discuss their coverage needs and potentially purchase additional riders (own damage, add-on covers).

7. What is the fee for an insurance transfer? 

The insurance company might charge a nominal fee to process the transfer. It's best to check with your insurer for the exact amount.

8. How to transfer bike insurance in India? 

The two-wheeler insurance transfer process usually involves contacting your insurer and submitting the required documents. You can inquire with your insurer for their specific online or offline procedures. Remember, the new owner might need to take further steps to secure their desired level of coverage.   *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. The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.