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How to Transfer Two Wheeler Insurance Policy?

By Vikas Chandra Das
21 July 2022, 11:46 AM
how to transfer two wheeler insurance policy

Maintaining an old two-wheeler is time-consuming and expensive. As time passes, along with the performance, the market value of the vehicle also drops. In such situations, it becomes important to replace the old rusty two-wheeler with a brand new model. If you are also planning to upgrade your vehicle, remember to transfer the ownership of your two-wheeler insurance. Failing to do so may cause unwanted legal problems for both the buyer and seller if the vehicle meets with an accident.

To help you make a smooth deal, we will be covering what is two-wheeler insurance transfer and how you can do in a few easy steps: 

What is the Two Wheeler Insurance Transfer?

Two-Wheeler Insurance Transfer is the process of transferring ownership of the two-wheeler policy in someone else’s name. Usually, transfers like these are made at the time of buying or selling older two-wheelers. It is important to notify your insurance provided regarding this transfer. This helps the insurer update their system with the new owner.

What is the Process for Two Wheeler Insurance Transfer?

If you are a first-time seller, do not worry. Two-wheeler insurance transfer will only take a few simple steps. You can use this step-by-step guide to understand it better: 

Step 01: Submit an application for insurance transfer:

Although you can apply within 2 weeks from the date of vehicle ownership transfer, it is best to finish all the formalities before handing over the vehicle to the new buyer. Therefore, it is recommended to start the insurance transfer along with the ownership transfer process. 

Step 02: Submit all documents related to the two-wheeler:

As part of the verification process, you will need to submit some documents. These documents include the two wheeler’s registration certificate (RC), original insurance policy, name of the vehicle’s dealer and history of policy premium payments.

Step 03: Submit ID proof for KYC of the owner as well as the buyer:

It is mandatory for both the owner as well as buyer to go submit Know Your Customer (KYC) forms. It is recommended you carry your PAN card or Aadhaar card and driver’s license as ID proof during the transfer. 

Step 04: Submit third-party insurance details:

Since it is compulsory to carry a third party liability cover, remember to transfer the details of the policy along with other formalities. This will help in calculating the premium amount in the future. 

What About No Claims Bonus (NCB)? 

You do not have to let go of the No Claim Bonus you have collected. You can submit the NCB certificate to the insurer and claim the discount on future premium payments for your two-wheeler.

Transferring Two-Wheeler Ownership

Selling a vehicle is not as straightforward as handing over the vehicle keys to a new owner. There is a legal procedure involved in transferring a vehicle. As a seller, you will need to follow these steps: 

Step 01: Request for transfer of two-wheeler ownership at your RTO. 

The seller should ensure the RTO is the one where the vehicle is registered.

Step 02: Submit registration certificate (RC), insurance papers, and other documents to the District Transport Office (DTO)

Step 03: Verification of documents by the officials. 

If all the necessary documents are correctly presented and ownership is transferred.

Buyers need to keep in touch with the regulating body at the time of ownership transfer. The below table has different scenarios that you may come across: 

ScenarioAction to be taken

Buyer, as well as Owner, belong to one state


The buyer should inform the RTO within 2 weeks of the transfer
Buyer and Owner belong to different statesThe buyer should inform the RTO within 6 weeks of transfer.
Seller dies before the legal transfer of ownership to the BuyerThe buyer should inform the RTO within 4 weeks.

Why is it Important to Transfer Two Wheeler Insurance?

Riding without two-wheeler insurance is illegal in India. Moreover, if the vehicle meets with an accident, the insurer has the right to reject claims made by the new owner. As a seller, it is your responsibility to let the insurer know about the transfer beforehand. 

If you are a buyer, make sure that the owner has successfully completed all insurance transfer formalities. Without valid insurance, you will have to bear the entire financial expenditure in case of unforeseen emergencies. It is also important to note that before proceeding to insurance policy transfer, you should officially transfer the ownership of the vehicle to the new owner.


Just like the transfer of ownership, transfer of two-wheeler insurance is also a legal liability of the seller. It is not only important as per the law but also provides financial security for the future rider. Although the process may seem lengthy, it is very simple and can be done without the help of any agent.

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