A new report shows that two-wheeler riders make up for 25% of all road accidents deaths. The passing away of a policyholder is a painful experience. During these times, the family of the policyholder needs time to grieve and overcome their loss. However, there comes a time when pending paperwork needs to be finished. Transfer of two-wheeler insurance policy is one such responsibility.
Transfer of Two Wheeler Insurance in Case of Death of the Policyholder
Once the policyholder has kicked the bucket, the responsibility of the vehicle will be moved to the legitimate successor. Typically, the two-wheeler insurance (after the demise of the vehicle's owner) will be moved in the name of the nominee (lawful beneficiary)
In a situation where there is a delay between this transfer and the policy expires, the lawful beneficiary can renew the policy. The nominee must inform the bike insurance provider about the death and initiate the transfer of the two-wheeler insurance plan in their name. However, it is important that the renewal is carried out at the earliest with proper documentation at every step.
Bodies Involved in Two Wheeler Insurance Policy Transfer
Generally, a regular two-wheeler insurance contract is between the policyholder and the insurance agency. In a few cases, the vehicle owner may opt for a broker or aggregator. In any case, different bodies are involved in the transfer process. Here are all the necessary stakeholders:
1. Insurance Company
The insurance agency must be notified about the passing of the policyholder as soon as possible. The process of transfer of the policy from the policyholder to the legal heir should be initiated.
2. Legal Heir/ Nominee
If the policyholder has chosen a nominee, the two-wheeler insurance plan will be easily moved to that individual. Without a chosen nominee, the two-wheeler insurance plan will be transferred in the name of the legitimate beneficiary after a thorough assessment.
3. Regional Transport Office
The lawful beneficiary or nominee should get the vehicle's Registration Certificate moved from the policyholder's name to their name. In order to do that, they will have to visit the Regional Transport Office (RTO) where the vehicle was registered.
*PRO-TIP: For RC transfer in case of a bike on loan, the authorities will need a No Objection Certificate (NOC) from the bank.
Apart from that, here is a list of documents needed for RC transfer
- Registration Certificate (Original)
- Pollution Under Control (PUC) Certificate
- Chassis imprint of the two-wheeler
- Original Two-wheeler Insurance Copy
- Death Certificate of the policyholder
- Address and ID proof of the lawful beneficiary
- Succession Certificate
- RTO Papers
Common Situations for Two Wheeler Insurance Policy Transfer
There are two common scenarios in the event of the death of the policyholder. Read on to know more:
1. Death of Spouse:
In the case of death of a partner, their spouse automatically turns into the legitimate beneficiary. If the partner’s name has already been nominated, the transfer process is very simple. This can be verified by reaching the insurance provider.
Documents needed for the transfer -
- Policyholder's Death Certificate
- Self-attested Aadhaar card copy
- Marriage Certificate Copy
- Original two-wheeler insurance policy
- Original Registration Certificate (RC)
- Pollution Under Control (PUC) Certificate
- Regional Transport Office papers
- Succession Certificate
- Notarized Affidavit
- No Objection Certificate from the bank (if applicable)
2. Death of Single Parent:
If the policyholder was a single parent, the insurance policy would be transferred in the name of the policyholder's children. If there is more than one child, the lawful beneficiary will need to inform the insurance provider and initiate the process.
Documents needed for the transfer -
- Policyholder's Death Certificate
- Self-attested Aadhaar card copy
- Original two-wheeler insurance policy
- Original Registration Certificate (RC)
- Pollution Under Control (PUC) Certificate
- Regional Transport Office papers
- Succession Certificate
- No Objection Certificate from the bank (if applicable)
Frequently Asked Questions:
1. Is it necessary to change the name in the two wheeler’s RC?
The Registration Certificate is considered as proof of vehicle ownership. Therefore, it is important for the new owner to have their name on it. That is why RC transfer is important even in the case of second-hand vehicles.
2. What happens if there is no legal beneficiary like a spouse or children?
If the expired policyholder doesn't have any legal successor as spouse or children, the policyholder's blood relative can accept the owner after providing all the necessary documents proving their relationship.
3. Is it necessary to approach a lawyer to transfer the two-wheeler insurance in the name of the legal beneficiary?
If the policyholder has already chosen one nominee, there is no need to consult a lawyer. The two-wheeler insurance transfer can be started just by informing the insurance provider. However, you may need to contact a lawyer to prepare a will, if necessary.
Summary:
The process of transferring a two-wheeler insurance policy after the death of the policyholder is extremely simple. Insurance providers understand the burden of loss and co-operative to fast track the process if all the necessary documents are ready. It is best to have a nominee chosen for your insurance plan at the time of buying or renewing.
