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Car Insurance 1298 views April 3, 2021
If you are purchasing a second-hand car, make sure you get the car insurance policy transferred from the previous owner. Because as per Section 157 of the Motor Vehicles Act, both buyer and seller must transfer the car insurance policy within 14 days from the date of car purchase. And many of us while purchasing a second-hand car don’t know its importance. In the car insurance transfer, a policy ownership shifts from its existing holder to another person, who purchases the car. This means the new owner of the car can get the benefits of the car insurance policy. So how does the car insurance transfer take place? What are the documents you need to submit? We have answered all these and provided other information in this article. Take a look!
Table of Contents
To transfer the car insurance policy in your name, you need to follow the instructions shown below –
You need to submit the following documents to the insurer to get the car insurance policy transferred to your name.
Note – If your Regional Transport Office (RTO) prolongs ownership transference in the registration certificate, apply for a car insurance transfer with the other documents. Also, an insurance company will not settle claims if you do not have a copy of the transfer of the Registration Certificate (RC). So, you should submit it to the insurance company as soon as you receive your new RC.
You have 14 days to transfer the car insurance policy of your purchased second-hand car, otherwise, no further claims against that insurance policy shall be available to you. If your second-hand car has third-party liability car insurance, the policy shall be automatically transferred upon purchase and remains active for those 14 days. Whereas, if the purchased second-hand car has a comprehensive car insurance policy, only its third-party component will be transferred upon purchase.
Note – The automatic third-party cover shall be cancelled if car insurance is not transferred within 14 days of the car purchase, as per Section 157 of the Motor Vehicles Act.
For transferring car insurance, you need to exchange some other essential documents related to the second-hand car. Primarily, the RC that formalizes car ownership. Other than that, the following documents should be transferred in your name:
Yes, it is equally important to a seller. Because if you don’t transfer your car insurance, you might be legally obligated to compensate for losses suffered to a third party from your car.