The two wheeler market in India is one of the largest in the entire world. As of 2022, there are around 13.47 million two wheeler units sold in India. Bikes, mopeds and scooters are the most traffic friendly and fuel efficient modes of transport both in big cities and in rural areas. They are both affordable and convenient. Because of their utility, well maintained two wheelers have a high resale value. Instead of spending money to buy a new two wheeler, some people may prefer to purchase a used vehicle.
So, if you are thinking of buying a second-hand two wheeler or selling your own, there are a number of important factors that need to be considered. The transfer of a two wheeler insurance policy is one of the important issues to be addressed properly.
The insurance of the old two wheeler must be transferred in the name of the new owner. A delay or failure to do so may lead to problems if the two wheeler ends up in an accident or a mishap.
Importance and Benefits of Transfer of Two Wheeler Insurance
Accidents can happen any time. If the second hand two wheeler gets in an accident due to any reason and if the insurance is not transferred to the new owner, then the new owner is not eligible to claim any amount of compensation from the insurance company. The new owner would have to pay for all the damages out of his own pocket. Furthermore, if a third party is injured or gets damaged then the financial compensation may be too big for the new owner.
The previous owner of the two wheeler also benefits from the transfer of insurance in two ways.
Protection from future liability- The previous owner would be free from paying any compensation for the accidents or mishaps that may occur in the future to the two wheeler.
No Claim Bonus Retention- Additionally, the previous owner can retain the No Claim Bonus (NCB), which can further be used to get discounts on premium.
Read more - How to Transfer Two Wheeler Insurance Policy?
Process of Transfer of Two Wheeler Insurance
Before getting into the transfer of insurance, one must transfer the ownership of the two- wheeler from the previous owner to the new owner. For that the following documents are required.
1. Original Registration Certificate (RC)
2. Identity and address proof of the seller
3. Passport size photographs of the seller
4 Active insurance policy document
5. Pollution Under Control (PUC) certificate
6. Receipt from RTO for the Forms 28, 29 and 30 (application form with the buyer’s and seller’s signature) and proof of sale
7. No Objection Clause (NOC) from the previous owner
8. Identity and address proof of the buyer
9. Passport size photographs of the buyer
Submit all the documents to the Regional Transport Office (RTO) and wait for the new Registration Certificate to be issued in the name of the buyer. It generally takes around one month for the transfer. If the seller and the buyer belong to different states then this process may take up to 60 days.
Once the ownership has been transferred, the new owner can apply for the transfer of the insurance. It is mandatory for the new owner to apply for the transfer of insurance within 14 days of receipt of the new Registration Certificate.
For the transfer of two wheeler insurance the following documents are required.
1. New Registration Certificate (RC)
2. Paperwork of ownership transfer
3. Active insurance policy document
4. Pollution Under Control (PUC) certificate
5. No Objection Certificate (NOC) from the previous owner
6. Identity and address proof of the buyer
7. Passport size photograph of the buyer
Once these documents are ready, contact the insurance company from which you wish to purchase the insurance within 14 days.
Fill out the necessary forms. Choose the type of insurance you wish to get i.e. third-party plan or comprehensive plan. You may also choose some add-on covers to further enhance your insurance coverage.
The insurance company will then appoint an inspector who will check the two wheeler. Once the inspection is done and the report is generated, pay the required fees for the process of transfer.
You shall receive the new insurance policy with your name via e-mail and/or courier within a few days.
Read more - How to Transfer Your Insurance Before Selling Your Second Hand Bike?
Points to Remember
1 If the seller and the buyer belong to the same state, then the process of transfer of insurance must be completed within 14 days of ownership transfer.
2 If the seller and the buyer belong to different states, then the process must be completed within 45 days. In this case, a Clearance Certificate is required to be submitted. It contains all the details of the two-wheeler along with the credentials of the seller as well as the buyer.
Conclusion
With this, we have now understood the process of transfer of two wheeler insurance. Just the transfer of ownership is not sufficient, the transfer of insurance is equally important. Riding a two-wheeler without insurance is both dangerous and against the law. It is the duty of the buyer to have all the necessary documents transferred to his name before taking out the two-wheeler.
Read more - Everything You Need to Know about Two-wheeler Ownership & Insurance Transfers
