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!

The procedure of Transferring Car Insurance From One Person to Another

To transfer the car insurance policy in your name, you need to follow the instructions shown below –

  1. Apply for a car insurance transfer by going to the respective insurer branch office or visiting the insurer official website
  2. Pay a transfer fee
  3. Submit the required documents
  4. And wait for the approval

Documents Required for Car Insurance Transfer

You need to submit the following documents to the insurer to get the car insurance policy transferred to your name.

  1. Duly filled transfer application form
  2. Form 30
  3. Form 29
  4. No Objection Certificate (NOC) from the existing policyholder
  5. Inspection report (Conducted by the insurer)
  6. New registration certificate

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.

Fourteen Day Period of Car Insurance Transfer

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.

Things to Keep in Mind While Transferring Car Insurance

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:

  1. Original invoice of the car
  2. NOC from the previous owner
  3. Road tax receipts
  4. Also, the buyer and seller must sign Form 29 and 30 to make the transaction effective

Is Car Insurance Policy Transfer Important If You are the Seller?

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.

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