It is mandatory for every two-wheeler to have basic third-party insurance coverage to be able to ply on Indian roads. Now, if you are planning to sell your bike and get a new one, you may wonder what happens to the insurance coverage on it. After all, there are probably still a few months left on your bike insurance plan before it expires. In such a situation, you may choose to cancel the policy or simply have it transferred over to the new owner’s name.
It is quite likely that the person who purchases your bike would want to transfer over the insurance coverage. This would save them from the hassle of searching and buying a new bike insurance policy. In this article, we will take you through an overview of what you must know about transferring your bike insurance policy.
The process of transferring bike insurance
If you are transferring bike insurance for the first time, you might have a few questions about how it’s done. Here is a quick look at the steps involved in the transfer process:
- Talk to your insurance provider and let them know you will be transferring the insurance to a new owner
- Request for your no claim bonus certificate
- Next you and the new owner need to apply for the transfer of insurance policy ownership by filling up any relevant forms and presenting documents, as required
- Pay the transfer fee (if any)
These are the steps to be generally followed when transferring bike insurance. The details of the process may vary slightly between different insurance companies. Do make sure to go to the insurance office with all the necessary documents so that you can get your work done easily. You may need to carry a copy of your old bike insurance policy. Call up the insurance company and ask them what documents are required.
Remember that you must transfer the insurance policy to the new owner before going to the RTO for transferring the Registration Certificate of the vehicle.
The importance of transferring bike insurance
Once you sell your bike and hand over the keys to the new rider, you are no longer around to make sure that it is driven carefully. If the new owner meets with an accident, you might get held liable for damages if any of the paperwork and insurance documents are still in your name. Moreover, you should transfer your bike insurance policy over so that you can benefit from the no claim bonus (NCB) on the new bike insurance that you purchase if you have not made any claims on your old policy. All you have to do is get a certificate from the insurer once you transfer the insurance and then produce this certificate to get the bonus on your next policy. Finally, transferring insurance over would be the right thing to do. Why take all the hassles when you no longer own the vehicle anymore?
We hope this article has helped improve your understanding of transferring bike insurance. Take care and ride safe!