Important Things To Know About Bike Insurance Policy Transfer

Important Things To Know About Bike Insurance Policy Transfer

One of the world’s largest markets for two-wheelers is India. Bikes are more popular in India because of the congested traffic. It is simple to park, simple to maneuver through traffic, and economical with fuel. Most people prefer to sell their old bikes and get new ones because of the regular updating of two-wheeler models and the market. The requirement for bike insurance transfer then emerges. 

Transferring your bike insurance policy to the new owner of the bike is referred to as a bike insurance transfer. These transfers are typically required when you are planning to buy or sell an older two-wheeler.

You must inform your insurance provider of such ownership transfers. By doing this, the insurer will be able to appropriately amend their records to reflect that the subject bike has a new owner.

Why Is It Important To Transfer Bike Insurance?

If you are selling your bike to another person, along with the transfer of your ownership, it is important to transfer the insurance of the bike as well.

Let’s take an example to understand!

A young man, named Deepesh, used to ride his Apache RTR 180 bike. But now he sold his bike to his nearby local friend, named Rohit. Here is the thing!

Though Deepesh had already transferred the ownership of his bike to his friend, he didn’t transfer the insurance policy that came with this bike. If Rohit is riding his bike and unfortunately, he meets an accident, then the insurance company will not provide cover for anything, no matter how major or minor the accident is.

You might now have a better understanding of the significance of bike insurance transfer. If you did not use your insurance while the policy was in effect, you will be entitled to benefits including the retention of the No-Claim Bonus with the transfer of insurance. If the two-wheeler is involved in an accident, insurance will assist you to avoid further legal responsibility.

Benefits of Transferring Your Bike Insurance Policy

Listed below are the potential benefits of transferring your bike insurance plan. 

  • Guarding Against Future Liabilities – If the new owner of the car damages a third party’s person or property and a third-party claim needs to be made. You would be listed in your policy and held liable if you hadn’t changed the ownership of your car and the insurance policy. You must make sure that all the paperwork, including the insurance policy, is properly transferred to the buyer of your old car to avoid running into problems like this.
  • Withholding the No Claim Bonus – You are eligible to get a No Claim Bonus (NCB) from your insurance company if you did not file any claims under your two wheeler insurance policy during the previous year. Your insurance company may reward you with an NCB if you ride safely and file no claims. To receive discounts on your premium when you transfer ownership of your car, be sure to notify your insurer and obtain a No Claim Bonus Certificate.
  • Less Hassle– One of the biggest benefits of transferring your bike insurance policy is that you will not face any hassle and rest assured that you have transferred the policy along with your bike. Also, if something happens, you shall not be accountable for anything that may happen to the receiver.

How To Transfer Bike Insurance?

If you follow the correct procedures, transferring insurance is a rather straightforward process. A comprehensive guide to assist you in this endeavour is provided below.

Step 1: Within 15 days of formally transferring ownership of the two-wheeler, apply for insurance transfer. The best strategy is to start these insurance transfer procedures at the same time as you do the same for ownership.

Step 2: Submit the required paperwork to the insurance provider along with the bike’s insurance transfer form to prove the ownership transfer.

Step 3: To keep a record of this transfer, the buyer and seller may both be required to supply documentation, such as identity evidence, residence proof, driving licenses, etc., depending on the company.

Step 4: As the seller, you can extend coverage to your new bike or two-wheeler by adding the name of another vehicle to your current policy. Remember that the pro-rata formula may cause the premium rate to vary.

Step 5: During this policy transfer, the seller must show proof of third-party insurance. This helps with future premium estimation for the plan.

Documents Required for Bike Insurance Transfer

Here is the complete list of two-wheeler insurance name transfer forms and documents you need for the seamless transfer of bike insurance.

  • Registration Certificate of the two-wheeler
  • Sale deed of the two-wheeler
  • Original insurance policy
  • Form 28, 29 and 30
  • Insurance policy premium payment history
  • No Objection Certificate (NOC) from the previous owner
  • Address proof of the buyer
  • Paperwork of ownership transfer
  • Passport-size photographs of the buyer

What Happens if the Vehicle Insurance Transfer is Incomplete?

In accordance with Section 157 of the Motor Vehicle Act, the seller must, within 14 days of the sale of the vehicle, transfer the insurance policy into the buyer’s name. Just the third-party portion of the policy is automatically transferred if that makes sense. This indicates that you are not eligible for benefits like Own Damage Insurance (OD) or any Add-ons (if any).

The insurer is not responsible for paying any losses you incur, including those covered under the own damage and third-party sections, if you do not transfer the bike or auto insurance policy into your name. In addition, the court may notify the former owner to provide restitution for the loss suffered by a third party as a result of an accident brought on by the new owner.

Things To Keep in Mind for a Seamless Second Hand/Used Bike Insurance Transfer

Here is the list of the things that you should keep in mind if you want a hassle-free used bike insurance transfer.

  • Don’t Forget to Transfer within 2 Weeks: Make sure to transfer the auto or motorcycle insurance coverage within 15 days of the day that ownership of the vehicle changed.
  • Send in the Proposal Form: In order to make sure you have a hassle-free experience; you might be asked to send in the Sale deed of the car ownership together with the proposal form.
  • Importance of Registration Certificate (RC): One of the necessary documents to change the insurance policy into your name is the RC. Make sure you have the RC document on hand when requesting a transfer of insurance.

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