5 min read
Updated on Mar 14, 2023
To change vehicle ownership is an integral part of the process of selling a car both the person selling the car as well as the one buying it. However, it is a fact that many of us do not have proper knowledge and clarity on a very important thing – transferring the existing car insurance policy. Let’s learn about the process in this blog.
First you must know whether you need to transfer car insurance at all while selling your car and if so, why?
You need a car insurance to protect your car from any unforeseen events and damages. So, when you sell your car, there is no point in having an insurance for that car. Thus, it is important to transfer the car insurance in the name of the new owner. If you are the buyer, just ensure to get the car insurance in your name.
Below are two other important reasons to transfer car insurance policy:
To transfer car insurance from one person to another, you need to submit the below mentioned documents to your insurer:
NCB is an important aspect of the car insurance transfer process. While transferring the car insurance, you must remember to retain your no claim bonus. For this, you have to apply to your insurer by submitting a NCB retention letter, which makes the previous owner of the insurance policy eligible to obtain the NCB discount.
No, the NCB or no claim benefits are non-transferrable. So, you can transfer your car insurance policy but cannot get the NCB transferred.
Below are the documents required to submit to the insurer to receive a retention letter for NCB:
You have seen that form 29 and 30 are very important documents required to obtain a retention letter for NCB transfer.
If the car insurance transfer process remains incomplete, you will not be able to make any claims for third-party damages if any such damage is caused due to an accident or collision.
In the event that uninsured automobile causes third-party damage, you will be legally responsible the losses from your own money.
The Motor Insurance Act makes it clear that it is the responsibility of the seller of the car to ensure that the current car insurance policy is transferred to the new owner. And the process should be done within 2 weeks of selling the vehicle.
Further, you must know that for the first 2 weeks of selling the vehicle, it automatically transfers the third-party insurance cover to the new owner and stays active too. However, this facility is not allowed for own damage coverage. So, to get Own Car Damage coverage, you have to wait for the transfer car ownership to be completely done. Additionally, if the transfer is not completed within the first two weeks, even the third-party policy gets dissolved.
Read More: Did you know that No-Claim Bonus can be transferred from One Car to Another?
Now you know how to transfer car insurance from one person to another. Also, you know why it is important to transfer car insurance in the first place. As such, when we invest in a new asset, it does require a lot of planning. So, it is important to go through all such processes of proper transfer of insurance papers etc. Hence, ensure to get such transfers done in a proper way to avoid any sorts of legal trouble. Here, form 29 30 RTO plays an important role in the transfer process.
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
View this post on Instagram
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Pollution is a huge threat that has been contributing severely to the deteriorating health of people in India. A major contributor of the increased air.
Airbags are among the significant safety innovations of the recent time as they provide vital cushioning to people sitting in a vehicle during a crash..
For keeping the environment clean and pollution free, people have now started using Electric Vehicles in India widely. Let us understand in this post how.
A car insurance policy number is a basic requirement during accidents, mishaps or at regular traffic police checking. Let us understand how to get an.
Accidents and uncertainties are part of life that comes unexpectedly without any prior information. Hence, it is very important to have a first aid kit.
To drive a car on Indian roads, the car needs to be covered by an insurance policy. However, to ensure continuous coverage, the policy needs.
High motor Insurance premium rates have been a cause of worry for many. Hence IRDAI introduced vehicle insurance based on usage where premium is levied.
Table of Content Types of Car Insurance Policies Bharti AXA Policy Download - Steps to Consider Is the hard copy of the Bharti AXA car.
Table of Content About Third-Party Motor Insurance Policy How to Claim Third Party Car Insurance What Comes under Third-Party Claims? Third-Party Claim Process - Conditions.
The foremost and undoubtedly the most crucial decision before buying insurance for your car - which type of policy would best suit your needs? Read.
Speak to our advisor
Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.