Transfer Vehicle Ownership to New Owner: A Complete Guide

Are you planning to sell or purchase a vehicle in India? If so, understanding the process of vehicle ownership transfer is crucial. Whether you're dealing with a car or a bike, knowing the right steps to transfer ownership can save you time, effort, and potential legal troubles. Let’s explore the various methods of transferring vehicle ownership in India, both online and offline, while also highlighting the importance of two wheeler insurance and bike insurance transfer.

What Is Vehicle Ownership Transfer?

Vehicle ownership transfer is the legal process of transferring the rights and responsibilities of a vehicle from one person to another. In India, it involves updating the registration certificate (RC) with the new owner's details after a vehicle is sold or purchased. During ownership transfer, necessary documents such as the original RC, insurance policy, pollution under control (PUC) certificate, address proof, and identity proof of both the buyer and the seller are submitted to the Regional Transport Office (RTO) or through the online portal.

RTO Documents for Car and Bike Ownership Transfer

To successfully transfer the ownership of a car or bike in India, the following RTO documents are required:

1. Original Vehicle Registration Certificate (RC): The original RC of the vehicle.
2. Sale/Transfer Agreement: A signed document between the buyer and the seller.
3. Form 29: The notice of transfer of ownership of the vehicle, signed by the seller.
4. Form 30: The application for intimation and transfer of ownership.
5. Insurance Certificate: The valid insurance certificate of the vehicle.
6. Pollution Under Control (PUC) Certificate: A valid PUC certificate for the vehicle.
7. Address Proof of the Buyer: A valid document like Aadhar card, passport, or utility bill as address proof.
8. Identity Proof of the Buyer: A government-issued ID like Aadhar card, passport, or voter ID.
9. Vehicle’s Tax Receipt: Proof of road tax payment for the vehicle.
10. Chassis and Engine Copy: A copy of the chassis and engine imprint.
11. Passport-size Photographs: Recent passport-sized photographs of the buyer and seller.
12. No Objection Certificate (NOC): Required in case of an out-of-state transfer.

These are the basic documents needed to complete the transfer of vehicle ownership in India at the RTO office.

How to Transfer Vehicle Ownership Offline?

The traditional method of transferring vehicle ownership involves visiting the Regional Transport Office (RTO):

- Obtain A No Objection Certificate (NOC)

If you're the seller, you must first obtain an NOC from the RTO where the vehicle was originally registered. This document states that there are no pending dues or legal issues associated with the vehicle.

- Sale Agreement

Create a sale agreement with the buyer, including details such as the vehicle's make, model, registration number, and the agreed-upon price. Both parties should sign the agreement, and it should be notarized.

- Form 29 and Form 30

Complete and sign Form 29 (Notice of Transfer) and Form 30 (Application for Transfer of Ownership). These forms can be obtained from the RTO or downloaded from their official website.

- Submit Required Documents

Along with the completed forms, submit documents such as the original registration certificate (RC), insurance policy, pollution under control (PUC) certificate, address proof, and identity proof of both the buyer and the seller.

- Payment of Transfer Fee

Pay the prescribed fee for ownership transfer at the RTO. The fee varies depending on the type of vehicle and its age.

- Vehicle Inspection

The RTO may conduct a physical inspection of the vehicle to verify its condition and ensure that it matches the details mentioned in the documents.

- Issue of New RC

Once all the formalities are completed, the RTO will issue a new registration certificate in the buyer's name. Also Read: Transfer Bike Insurance Policy: Steps, Documents Required for Second-hand Vehicle

How to Transfer Vehicle Ownership Online?

To make the ownership transfer process more convenient, the Government of India has introduced the Parivahan Sewa portal. Here's how you can transfer ownership online:

1. Visit the Parivahan Sewa website (parivahan.gov.in) and select your state.
2. Fill in the required details of the buyer, seller, and the vehicle. Upload the necessary documents, including the RC, insurance policy, pollution certificate, and address and identity proofs.
3. Pay the applicable fees online through net banking, credit card, or debit card.
4. Submit the application and wait for verification. The concerned RTO will review your application and documents.
5. If everything is in order, the RTO will process your application and issue a new RC in the buyer's name.

Why is the Transfer of Car or Bike Insurance Required?

The transfer of car or bike insurance is required for the following reasons:

1. Legal Requirement: When a vehicle's ownership is transferred, the new owner must update the insurance policy to reflect their details. This ensures that the vehicle is legally insured under the new owner’s name.
2. Continuity of Coverage: Transferring the insurance ensures that there is no break in the coverage. The new owner is protected against risks such as accidents, theft, and damages.
3. Claims Handling: If the insurance is not transferred, the new owner may face difficulties in making claims as the policy will still be in the name of the previous owner.
4. Avoiding Liabilities: Without transferring the policy, the previous owner could still be liable for accidents or damage caused by the vehicle, even though they no longer own it.
5. Better Premium Rate: The new owner can negotiate a better premium or benefits on the existing policy if the transfer is done promptly, ensuring they continue to receive the best possible coverage.

In essence, transferring insurance ensures the new owner receives full benefits and remains legally covered under the insurance terms.

Importance of Two-Wheeler Insurance or Bike Insurance Transfer

While transferring vehicle ownership, it is crucial to consider the insurance aspect. Two-wheeler insurance is mandatory in India under the Motor Vehicles Act, and the policy should be transferred to the new owner. Here's why it's important:

- Continuity of Coverage

Doing a bike insurance transfer ensures that the new owner enjoys uninterrupted coverage. In case of any unfortunate events, such as accidents or theft, the policy will provide financial protection.^ ^Claims are subject to terms and conditions set forth under two-wheeler insurance policy.

- Legal Compliance

If the bike is involved in an accident after the ownership transfer but the insurance policy is still in the previous owner's name, it can lead to legal complications. Transferring the policy ensures compliance with the law.

- No Claim Bonus (NCB)

If the previous owner had a claim-free year, they would have earned an NCB. By transferring the policy, the new owner can avail of this benefit, which can significantly reduce the premium for the next renewal. To transfer the vehicle insurance policy, the buyer and seller should submit a written request to the insurance company, along with the necessary documents such as the sale agreement, Form 29 and Form 30, and the new RC.

Conclusion

Transferring vehicle ownership in India involves specific procedures and documentation. By following the offline method through the RTO or utilizing the online platform of Parivahan Sewa, you can easily complete the transfer process. Remember to transfer the two-wheeler insurance policy as well, ensuring the new owner is protected against any unforeseen events. Stay informed, follow the guidelines, and enjoy a hassle-free ownership transfer experience. Also Read: How To Transfer Vehicle Registration From One State To Another?

FAQs

What is the fee for insurance transfer?

The fee for transferring vehicle insurance generally varies based on the insurer and the type of policy. It usually involves an administrative charge, which can range between ₹200 and ₹500, depending on the insurer.

Is it possible to transfer vehicle insurance?

Yes, it is possible to transfer vehicle insurance from the seller to the buyer in case of a vehicle ownership transfer. This needs to be done by contacting the insurance company and completing the necessary formalities.

Can you transfer ownership of an insurance policy?

While vehicle insurance itself cannot be transferred, the policyholder's name can be updated upon the transfer of ownership. The new vehicle owner must notify the insurance company and provide necessary documents for the update.

What happens if insurance is not transferred within 14 days?

If the insurance policy is not transferred within the stipulated 14 days after vehicle ownership transfer, the buyer might not be able to claim insurance coverage in case of an accident. It is also a violation of policy terms, leading to potential complications in the future.

Can you change the policy holder's name?

The policyholder’s name can be changed under specific circumstances, such as in case of transfer of vehicle ownership. However, the process may require submitting proof of ownership transfer and may depend on the insurer's terms.

Can you transfer an insurance policy to another person?

Typically, insurance policies cannot be directly transferred to another person. However, the policyholder can cancel the existing policy and purchase a new one under the new owner’s name. The process varies by insurance company, so it is best to consult the insurer. *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.