Transfer Car Insurance Policy Online
Since the cost of buying a car is increasing every year, car enthusiasts are not interested in owning a brand-new car. Instead, they are willing to buy a second-hand car to seamlessly cater to their commuting needs. And it could be claimed from the statistics that the current valuation for the used car market is 1.2X greater than the new car market.
With the inception of the tech-dominating landscape, the buying and selling process has become the utmost hassle-free and convenient. But simultaneously, you must not forget the crucial aspect while selling your old car, i.e., none other than the Transfer of the car insurance policy. While the new owner receives the car’s registration documents, he/she must also pay attention to the former owner’s car insurance policy and have it transferred to his or her name.
Transferring your car insurance policy refers to the shifting of your car policy from the current policyholder to another person having complete ownership. This is something that every individual (both seller & buyer) should be aware of when purchasing or selling a second-hand car.
So, are you looking to buy a used/second-hand car? If so, make sure you don’t forget to purchase a car insurance policy for the second-hand car along with all the other necessary formalities.
Why Is It Important To Transfer Car Insurance Policy?
There could be multiple reasons that state the importance of transferring your car insurance policy online. The first and foremost significance of transferring a car insurance policy is that if there has been significant damage to a third party or their property, the insurance policy of that particular car model should be owned by the car owner to file a third-party insurance claim. On the contrary, if the car insurance policy has not been transferred (no matter whatever the reason is), then the third-party claim will not be granted by the insurer.
If, however, you have not made any claim throughout your policy, the insurance company would give you a no-claim bonus. This would substantially decrease the amount of your premium for the subsequent years. If you want to avail discounts on your new insurance policies, then you must intimate your credible insurance company and receive your NCB certificate without any delay.
What Happens If Car Insurance Policy Is Not Transferred?
If the car insurance policy is not transferred due to some reason, then the insurance company is not entitled to accept claims made by the new owner. The possible reason behind this is that the car is already registered in the name of the new vehicle owner; hence, the registration certificate is in his/her name while the policy is in the name of the old owner. The claim will be refused since the names on both documents do not match. It is also necessary to transfer the policy from the seller’s perspective, as the seller will be held liable for damages if an accident occurs and third-party losses must be paid.
Most people are not aware of the fact that when a transfer happens, the collected NCB amount will remain with the old policyholder but not get transferred no matter what. In addition, the ‘No Claim Bonus will be applied only to the premium for own damage insurance. It is incredibly important for policyholders to understand how they can transfer the car insurance so that claims can seamlessly be resolved at the earliest.
Process To Transfer Your Car Insurance Policy
When it comes down to transferring your car insurance policy, choosing the right insurance company is important. In addition to your insurer selection, you must adhere to making the payment and submitting the following documents:
- Application form
- Form 30
- Form 29
- No Objection Certificate from the existing policyholder
- Inspection report – conducted by the insurance company
- New registration certificate
If your respective Regional Transport Office (RTO) delays in the process of transferring the registration certificate (RC), then you shouldn’t waste your time. Instead, try to use other documents to make your transfer an easy and convenient one.
No matter what car model you own, no insurance company would settle your claims if you fail to show a copy of the transfer of RC. As you could see, you cannot overlook the importance of having an RC. Make sure you try to submit it as soon as you receive the certificate.
What Paperwork Must Be Sent To New Car Owner?
The below-stated documents must be with the new owner of the car.
- New registration certificate
- Car insurance Policy
- Your Car Invoice
- NOC from financer
- Road tax receipts
That’s the wrap! The moment you think of selling or purchasing a used car for your daily needs, the first thing that shall stumble upon your mind is transferring of RC certificate and insurance policy. Simply eliminate unnecessary hassle both legally and financially.
Frequently Asked Questions
Here’s the list of the frequently asked questions related to the transferring of car insurance policy.
You can transfer your insurance to a new car during the policy term if your policy provider allows it and specific changes to the policy and premium are made.
As a seller, you can benefit from the auto insurance transfer, whether online or offline, in the sense that you will no longer be liable for any third-party responsibility that arises after the transfer. You can also apply your no-claim bonus to your new auto insurance policy, ensuring that you do not lose out on the benefit of paying a lower price.
You should file for a transfer of registration certificate first, then a transfer of automobile insurance policy.