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How to Transfer Your Insurance Before Selling Your Second Hand Bike?

By Vikas Chandra Das
21 July 2022, 11:46 AM

Every year, new bike models come in the market, showcasing impressive features and specifications. If your bike needs an update, purchasing a new bike could be the best choice. However, before you go looking for a new bike to replace your old one, think about whether you want to sell your old one. Selling your old bike is always a good idea because it helps you to recover some of the money you want to spend on the new bike. 

Before selling your bike, don't forget to transfer the ownership of the bike insurance policy of your bike to the new owner. Although most people remember to transfer their bike registration, they often forget transferring their bike insurance policy. Failing to transfer the insurance policy can result in serious legal issues for both you and the new owner of the bike if the bike gets involved in an accident in the future.

What is Bike Insurance Transfer?

Bike insurance transfer is transferring the bike insurance policy to the new owner of the bike. In most cases, such transfers are needed at the time of sale of a bike. Such changes of ownership must be reported to your insurance provider so that they can amend their documentation to reflect that the bike in question has a new owner.

Why Should You Transfer Your Insurance Before Selling Your Second Hand Bike?

At the time of selling your bike, it is important to transfer its insurance policy to the new owner because a new owner would be vulnerable to lawsuits if they do not have a valid insurance policy for the vehicle. In such a case, an insurance provider can deny to honour claims made by the new owner if his or her name is not on the insurance documents, if the bike in question is involved in a potential road accident.

If you are buying a used motorcycle, make sure the previous owner has completed all insurance transfer paperwork. Without an insurance transfer, the new owner will be responsible for the full financial burden of the damage caused by the two wheeler in question.

Let’s understand this better with the help of an example. In April 2020, Mr. Sen wanted to sell his old two wheeler which he had purchased 3 years back. He  found an interested buyer soon. To understand how the process of sale of his two wheeler will affect his existing two wheeler insurance policy, he contacted the Customer Support of his insurance company HDFC General Insurance. He was informed that he would have to transfer the insurance policy as well with the two wheeler in order to complete the process successfully. In order to do so, he was asked to contact his Regional Transport Office (RTO). The RTO asked him to submit the required documents like his bike’s RC, a copy of insurance policy document, etc. Once the two wheeler insurance company received the supporting documents and the request for the transfer of the policy, they asked for an inspection of Mr. Sen’s two wheeler.

Mr. Sen undertook a self inspection. In order to do so, he had to send photographs of his two wheeler to the insurance company. This included photographs of his two wheeler from the front, back, sides and more. Once the inspection was approved, the transfer process got initiated and he was able to sell his two wheeler and transfer its insurance to the new owner.

Steps to Transfer Your Bike Insurance Policy

Follow the steps below to transfer a bike insurance policy from the old owner to the new owner - 

  1. Within 14 days of purchasing a bike, submit an application for insurance transfer.
  2. Fill out the proposal form and make sure to provide all of the pertinent information about transferring ownership.
  3. Submit all the necessary documents to the insurance company.
  4. Along with the documents, send form 29, form 30, and the sales deed.
  5. An inspector from the insurance firm may be sent to compile the inspection report.
  6. You must also pay a small transfer fee when transferring your bike insurance policy.
  7. The bike policy will be transferred to your name after it has been checked by the insurance company.

Documents Required to Transfer Two Wheeler Insurance

If you want to sell your bike, you must first notify the respective state RTO (Regional Transport Office) where your bike is registered. They will assist you in completing the required paperwork and transferring possession of your bike. You will be required to submit the following details and documents to the RTO - 

  • R.C. (Registration Certificate)
  • Bike details
  • Original Insurance Policy
  • Transfer of ownership date
  • Dealer's details
  • Payment information for the initial policy's premium
  • Previous policyholder's NOC (No Objection Certificate)
  • Buyer and seller's personal information
  • Driving licence
  • Copy of PAN card
  • Copy of Aadhaar card
  • Contact Details

The insurance company will begin the transfer process after receiving the transfer request and all necessary documentation. The bike can be inspected, if required by the insurance provider. In addition, a fee will be charged in order to complete the policy transition. The insurance company should provide the seller with a No Claim Bonus Certificate. 

This allows you to keep the accrued bonus under your name. The bike insurance policy is transferred to the new owner's name if the requested documents are submitted and the transfer fees are charged. Typically, the policy transition process should begin within 14 days of the bike being sold.


Although a lot of thought goes into selling a used bike, most of us are completely unaware of the importance of transferring the insurance policy to the buyer’s name and relieve yourself of the damages that the new owner may cause. After you have completed all the procedures, the buyer can double-check the documents for any potential liabilities. Understand the basic procedures and documentation needed for transferring bike insurance. Since many people do not look for insurance transfer when purchasing a used bike, they end up facing legal penalties and fines. You can avoid such hassles by staying aware and completing the insurance policy transfer process in time.

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