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Know Everything about Transferring the Bike Insurance

By Vikas Chandra Das
08 September 2022, 4:14 PM

Selling your pre-owned two-wheeler and upgrading to a new vehicle is a good move. Or then, maybe you are relocating. Whatever the case, when selling your bike, it is your responsibility to ensure that you keep all the papers up-to-date and make a smooth ownership transition to avoid further challenges. Two-wheeler insurance is one of the most crucial documents amongst those. Transferring the insurance not only saves the new buyer but also protects you from further legal complications, as it’s compulsory for a vehicle’s registration.

What is the Transfer of the Bike Insurance Policy?

It is quite common in India for bike owners to change the two-wheeler as per our modifying needs or opting for a new higher-end model hitting the market. Many, such as students, also prefer buying used two-wheelers since they have a budget to consider. In the case of bike resale, the seller has to transfer his ownership to the new buyer along with its insurance. Which means, transferring your bike insurance. 

Know the Two-Wheeler Insurance Policy's Components

Most bike insurance companies provide packages that are divided into two components. The first section comprises essential personal details such as the policyholder's name, phone number, and address. It also keeps track of the policy number, issue date, term, and location.

The second section includes information such as the bike registration number, vehicle type and make, year of production, engine displacement, engine and chassis number, coverage, capacity and Insured Declared Value (IDV) among others.

Keep Yourself Safe From Future Legal Complications

Before transferring insurance policies, you need to formally transfer ownership of the bike to the new owner. It is essential since a new owner would be vulnerable to litigation without it. Also, if the vehicle in question is involved in a future traffic accident, your insurer will deny claims from the new owner if his or her name is not on the policy documents.

If the new owner is involved in an accident and the insurance paperwork is in your name, you will be responsible for covering the new owner's losses. In order to submit a claim, the motorbike insurance must be in the name of the new owner. If the insurance hasn't been transferred yet, it will very probably be refused, and you might face legal consequences. So, If you are purchasing a used motorcycle, ensure that the previous owner has completed all insurance transfer paperwork.

Get the Benefit of a No-claim Bonus

If you're selling your bike and haven't filed a claim throughout the policy's duration, the insurance provider will give you a no-claim bonus (NCB). Your insurance cost will be reduced as a result of the NCB, which you can use at the time of a new bike insurance policy. By redeeming the certificate, you may save money on your new insurance policy and let your insurance company know that your bike has a new owner.

How is the Bike Insurance Transferred to the New Owner?

Whether you have bought offline or online bike insurance, it's easy to transfer its coverage to a new owner. The steps listed below will let you do the same without encountering any hassles.

  1. Make sure you have all the necessary paperwork on hand before beginning the bike insurance transfer process.
  2. Apply for a transfer of bike ownership at a regional transport office (RTO) as the first step. Verify that it is the same RTO where you registered your bike for the first time.
  3. Select the insurance policy for your bike and any additional protection you deem essential.
  4. Submit at the Directorate of Transport Office Form 29, which is the Motorcycle’s Notice of Transfer of Ownership that intimates the RTO of the bike’s resale. The vendor is needed to provide two copies of this form. You also need to furbish Form 30 or the Report of Transfer of Motorcycle Ownership. It serves as Form 29's confirmation. Two copies of this form must be presented to the RTO. Along with these, it’s mandatory to provide documents such as the registration certificate (RC), emission test results, and insurance papers. Additionally, you must send two passport-sized photos.
  5. Then, a survey team from the insurance provider will inspect your bike. The transfer procedure will start after the firm submits a report. After all the paperwork is sent in, the registering authority checks it all to make sure everything is correct before transferring ownership of the bike.
  6. The bike insurance policy will be transferred to the new owner when the evaluation is complete.

Some More Conditions to Understand 

  1. If the buyer and seller live in the same state, report the transfer of ownership to the governing authority within two weeks of the acquisition.
  2. If the buyer and seller live in different states, report ownership transfer to the governing authority within 45 days of the transaction.
  3. If the owner of the bike dies before legally transferring ownership, the buyer must notify the regulating agency within 30 days.


It may appear that transferring ownership of your bike insurance policy is a chore. It is, however, a safe practice if all of the restrictions and conditions specified are followed. To prevent legal complications, make sure you transfer ownership of your bike insurance policy within the time frame specified.

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1. What if I buy a bike without insurance?

Basically, while such a bike is possible to buy, it is not recommended. Always opt for a two-wheeler that is legally insured by at least a third-party insurance plan. Plus, It’s a legal obligation, failing which the rider will have to face the legal processes imposed by government acts. 

The Motor Vehicles Act of 1988 requires bike insurance when driving on Indian public roadways. It is a required document that the rider must carry at all times, along with the driver's licence, registration certificate, and emission certificate.

2. When should the new bike owner apply for a transfer of insurance?

Within 14 days of the transfer of registration, the new owner of the bike must file an application to the insurance company for the transfer of insurance coverage.

3. What documents do I need to keep ready to make the bike insurance transfer?

  • The motorcycle's original registration certificate (RC).
  • The receipt of forms 28, 29, and 30 by the RTO. As verification of the bike's transaction, both the buyer and seller should sign these papers.
  • A letter of no objection should be provided by the old owner of the bike
  • The address of the buyer has to be verified 
  • Passport-sized photographs of both, the buyer and the seller
  • Documents of previous insurance plan
  • A vehicle inspection report provided by the insurance company

4. Does the original owner's NCB reduce the new owner's premium?

No. Whether the original owner accumulated NCB or not, your policy premium stays the same. The reason being, NCB is given to the policyholder after looking at his skilled driving. Hence NCBs are personal. So, they cannot be transferred from the original owner to the new owner.

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