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Everything You Need to Know about Two-wheeler Ownership & Insurance Transfers

By Juhi Walia
27 July 2022, 4:32 PM

If you’re reading this, one of two things is likely to be true: you’re planning to buy another bike, or your current bike has been totalled in an accident. Either way, you’re looking for the best two-wheeler insurance premium deal. Luckily, there are ways that you can get around that burden! Here’s how to easily transfer a two-wheeler and its insurance ownership from seller to buyer.

What is Bike Insurance Transfer?

Bike insurance transfer is the process of transferring the ownership of your bike insurance policy to another. This is usually done when you sell your bike or give it as a gift. To transfer your bike insurance, you will need to contact your bike insurance company and provide them with the new owner's information. You will also have to notify the company if you are the new owner so that it can update its records accordingly. 

Constituents of a Two-wheeler Insurance Policy

Two-wheeler insurance policies mostly contain important documents, including the basic information of the policyholder, policy date, terms, location, and policy number.

The second part of the two-wheeler insurance policy includes other important information concerning the vehicle, such as its registration number, model, model year, make, chassis number, engine displacement, IDV in bike insurance, coverage, etc. 

Steps to Transfer Ownership of Bike 

The process of transferring ownership of a bike is simple, but there are a few things you need to do to ensure the transfer goes smoothly. Here are three steps to follow:

 Step 1: You need to visit the Regional Transport Office (RTO) and apply for the transfer of bike ownership. It must be the same RTO where you did the vehicle's initial registration while purchasing the same. 

Step 2: You will also need to submit a few documents, such as the registration certificate, Forms 29 and 30, insurance documents, passport-sized photos, and other documents, at the DTO, also known as the Directorate of Transfer Office. 

Step 3: The authorities at the office will verify the documents, and if everything is alright, the ownership of the bike will be transferred. 

Bike Insurance Transfer Process

The following guide will help you understand the bike insurance transfer process.

Step 1: Within 15 days of the two-wheeler being legally in your possession, you must fill out and initiate the insurance transfer paperwork. Your best bet is to fill out this paperwork as soon as you initiate the formalities for ownership transfer.

Read more - How to Transfer 2 Wheeler Insurance Policy After the Death of the Policyholder

Step 2: You must bring all the documents, including the registration certification, any records noting the date you first acquired the bike, the paperwork of your old policy, proof of premium payments, and your dealer's name. 

Step 3: To maintain a record of this transfer, you need both the buyer's and seller's KYC documents. Please carry your Aadhaar card, PAN card and driver's license. 

Step 4: You can use your existing policy to extend the cover for your new bike; however, the premium rates will change based on the bike's condition. 

Step 5: The seller must provide the third-party bike insurance information. In the future, this will facilitate the calculation of premiums.

Benefits of Transferring Your Insurance Policy

There are a few benefits to transferring your insurance policy to the new owner of your two-wheeler:

Added Protection Against Litigation

When there's a change in bike ownership, an insurance policy won't cover you if a collision occurs until the new owner's name is reflected in the policy. As a result, you will be liable for the damages. With the transfer of your insurance policy, such inconvenience is avoided.

No-claim Bonus Benefit

Before the transfer of the bike ownership, if you have not filed any claims, you will also be eligible for the no-claim bonus (NCB) on your new policy. You must ask the insurer to get a certificate that indicates your eligibility for NCB in bike insurance during the policy transfer. This eligibility will be applied to your next policy that you can use to protect your new bike. If you don't go through with the official policy transfer, your NCB benefits will be lost. 

Read more - How to Transfer Two Wheeler Insurance Policy?

The Bottom Line

Since two-wheeler insurance is mandatory in India, transferring your insurance policy when you sell or give your motorcycle to someone is a legal necessity. We hope this guide has helped in understanding the requirements and processes old and new owners should follow for bike insurance transfer. By following these steps, they can ensure they are well within the confines of the law and have peace of mind. 

Read more -


1. Am I allowed to buy a bike that does not have valid insurance?

You are allowed but not recommended to do so. You must select a third-party insurance plan that covers your two-wheeler as is mandated by Indian law. It would be better if you buy a comprehensive plan so that you get the mandatory third-party cover and own damage cover.

2. Can the original owner's NCB lower the new owner's premium?

The premium of the new owner does not depend on the NCB accumulated by the previous owner. The reason being the NCB is not transferrable from person to person. 

3. When does the new owner of the bike need to transfer the insurance?

The person buying the bike must apply to the insurance provider for the insurance policy transfer within 14 days of the purchase. 

4. How many parties are involved in bike transfer?

Usually, three parties are involved. If you transfer your bike insurance from one insurer to another, you, your current insurer and the new one will be the parties involved in it. In case you transfer bike insurance to another individual, both of you along with your insurer. will be the participants of this transaction.

5. Are the owners' names on the RC and the insurance policy the same?

It should be. Else there can be issues when claiming bike insurance.

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