Things To Know Before Transferring A Bike Insurance Policy

Square Insurance 22 Apr 2022
Things To Know Before Transferring A Bike Insurance Policy

Overview of How to Transfer Bike Insurance?

When it comes to cutting through the traffic in India, two-wheelers remain the best mode of transportation.

Additionally, they are more prone to accidents on the road than other modes of transport. For this reason, getting your two-wheeler insured is the best way to protect yourself from losses resulting from accidents and other hazards.

Transferring bike insurance - what is it?

Moving your bike insurance policy online to the new owner means sharing your policy in their name. Transfers like these are usually necessary when you are about to purchase or sell an older two-wheeler.

Such transfers of ownership must be reported to your insurance company. The insurer can reflect that the bike in question has a new owner.

What is the process for transferring two-wheeler insurance?

Even though buying two-wheeler insurance is required by law, most people do not know what to do when selling their vehicles or transferring ownership. To retain the benefits of an insurance policy, a policyholder must be aware of the process of moving the policy.

To sell your old scooter or bike to get a new one, the entire process includes transferring ownership, transferring the insurance policy, and notifying the RTO.

Given the poor quality of Indian roads, two-wheelers are more two-wheeler vulnerable to road accidents than other vehicles, even when avoiding dense traffic. Keeping your bike/scooter safe from accidents and other risks requires buying a comprehensive insurance policy and renewing it regularly. Typically, a two-wheeler insurance policy covers your two various variety of unforeseen hazards, threats, and risks.

How can bike insurance be transferred from one person to another?

Considering purchasing a new bike to replace your old one? Every year, new bike models are introduced with impressive features and specifications. If you need to upgrade your ride, you might be best off purchasing a new one.

You must decide whether you want to sell your older two-wheeler before heading to the market to look for a new one. Selling a bike is always advantageous, as you can recover a portion of what you spent on the new bike.

Further, second-hand bikes can usually be found at reduced prices among consumers.

When selling your old two-wheeler, don't forget to transfer the bike's Mosty to its new owner. Most people remember to move their vehicle registration, but they should also not forget to share their bike insurance.

If the affected bike is involved in an accident in the future, you and its new owner could face significant legal hassle if the transfer is avoided.

Three Easy Steps to Transfer Ownership of a Bike

You don't just hand your keys over to the new owner when you sell a bike. To transfer a motorcycle properly, the following steps should be followed.

  • To transfer ownership of a cycle, visit a regional transport office. Make sure it is the same RTO where you registered the vehicle initially.
  • Step 2: Submit Form 2. At the Directorate of Transport Office, you must submit Forms 29 and 30, your registration certificate, emission test papers, insurance documents, and other paperwork.
  • After submitting all required documents, the registering authority verifies them and transfers ownership of the bike if everything is in order.

Using the table below, buyers can better understand their responsibilities during a bike ownership transfer.

The situation What you should do
when the buyer and seller live in the same state. The regulating body needs to be notified within two weeks of the transfer of ownership
In the case of two different forms. Immediately following the transfer of ownership.
If the bike's owner dies before the transfer is official. This must be reported to the regulatory body within 30 days.

Communicating a bike insurance policy

Don't know how to communicate insurance? We've got you covered. If you know some necessary steps, transferring insurance is quite simple. The following is a guide that will help you along the way.

  • Within 15 days of transferring ownership of the two-wheeler, you should apply for an insurance transfer. As soon as you begin the process for request, you should start the insurance transfer formalities.
  • To transfer your bike insurance policy, you will need to presentable documents. Documents you should carry include a registration certificate, paperwork indicating the date of ownership transfer, the original insurance policy, your dealer's name, and the history of premium payments.
  • KYC papers from the owner and the buyer are both required in step 3. Maintain a record of this transfer by carrying the PAN card, the Aadhaar card, the driver's license, etc.
  • You can extend coverage to your new bike or two-wheeler by adding another vehicle to your current policy as a seller. Keeping in mind the pro-rata equation, the premium rate is subject to change.
  • When transferring a policy, the seller must submit their third-party insurance. That way, the premium can be calculated properly in the future.

If you are selling your bike does not mean that you will lose the No-Claim Bonus you have accrued over the years.

To enjoy attractive discounts on the premiums payable on the policy for your new bike, submit your NCB certificate to your insurer.

When it comes to policy transfers for bike sellers, do you believe there are no benefits for you? Maybe you should reconsider.

What are the benefits of bike insurance transfer for sellers?

A seller might believe that they do not gain anything from such a transfer, while the benefits to a new owner are obvious. This isn't the case at all.

  • Protection from future litigation problems - If the new owner causes an accident with your old vehicle, the new owner's name will only be reflected on the policy paper when an accident occurs. You will still be liable for the accident-related damages. Transferring an insurance policy enables you to avoid such hassles, be it financial or legal.
  • When you transfer ownership of a vehicle, you may be eligible for a No Claim Bonus or NCB if you have not filed a claim on the vehicle's insurance before the transfer. The NCB certificate can be collected during policy transfer, and it can be applied to your next purchase of a policy to protect your new bike. if you fail to initiate an official transfer, your NCB accumulated from this previous policy will be lost.

There you have it!

Whenever you sell an older bike, take these factors into account and make sure you transfer your insurance. This is beneficial to both parties involved in the sale.

Moving your bike insurance policy: Why should you do it?

It is not easy to sell your beloved bike. It is essential to transfer all the bike's legal documents to the new owner after selling the bike to the new owner. Moving the bike insurance to the new owner is necessary

You are protected from future liabilities.

A new owner who has been involved in an accident and whose insurance papers are in your name may be liable for the new owner's loss if the insurance documents are in your name. To file a claim for bike insurance, the vehicle has to be registered in the new owner's name. The policy is likely to be rejected in the absence of transfer, and the insurer can be held legally liable.

Retaining your no-claim bonus

The insurance company would have rewarded you with a no-claim bonus if you had not made any claims during the policy period. You can transfer your no claim bonus to a new bike insurance policy you buy. It can be used as a discount on your premium. Redeeming an NCB certificate will allow you to tell your insurer that you have changed ownership of the bike and to receive a discount on the premium for your new insurance policy.

Transferring a bike insurance policy requires certain documents.

You will be required to produce certain documents when moving your bike insurance policy to a new owner. These include

  • Original bike registration certificate (RC).
  • Receipt from the RTO for forms 28, 29, and 30. To prove the sale of a bike, both the buyers and sellers must sign these forms.
  • Previous owner's certificate or the seller's no objection certificate.
  • Evidence of the buyer's address.
  • A passport-sized photo of the seller and buyer.
  • Proof of insurance coverage.
  • The insurance company's inspection report on the car.

Conclusion

It might seem complicated to transfer the ownership of your bike insurance policy. It will be a secure process if you follow all the guidelines and rules described in your bike insurance policy. avoid legal complications, and make sure you transfer ownership of the bike insurance policy within the stipulated time frame.

FAQ

Is it possible to share a bike without insurance?

Another vital document for the transfer of ownership of a bicycle is the insurance certificate. In accordance with the updated motor vehicle rules, every vehicle operating on Indian roads must display an insurance certificate.

Can you tell me how much it costs to transfer bike insurance?

Depending on the state, the fee may vary. Bengaluru has the same price of Rs. 150 for transferring bike ownership within the same RTO. The right of a two-wheeler can be shared with different types of NOCs.

When you sell your bike, what happens to your insurance?

As soon as the new owner provides the insurance company with all the details. The buyer's third-party policy for the used bike they bought will end after 14 days if the ownership transfer has not been completed within that time frame.

What is the risk transfer mechanism of insurance?

Transferring risk is usually accomplished through an insurance policy. The insurance company assumes the defined risks on behalf of the policyholder in exchange for a free premium and covers workers' compensation and property damage.

What is the process for transferring ownership of a motorcycle?

The original Motor Vehicle Inspection Report (MVIR) has been completed. A notarized copy of the Absolute Sale Deed is on hand. Original and one photocopy of any valid government-issued identification with the photo and signature of the vendor and the vendor's representative

Is it possible to transfer ownership of a vehicle without insurance?

The transfer of ownership cannot take place without insurance, as was stated in the previous section. The insurance policy must be valid for the transfer to be good. This insurance policy must also be assigned to the new owner. A motor insurance policy is required under the Indian Motor Vehicles Act.

Is it possible to transfer third-party insurance policies?

According to Section 157 of the Motor Vehicle Act, the seller is responsible for moving the car insurance policy within 14 days of purchase. Insurance companies are not liable for any losses incurred by the new owner if the seller fails to transfer the policy.

Is it possible to change the address on the insurance policy

  • You should update your Registration Certificate (RC) with your current address.
  • Let your insurance company know that your address has changed.
  • You should also submit an updated registration certificate.

What is the most common way to transfer risk?

A standard method of transferring risk is to purchase an insurance policy, which moves the threat from the entity purchasing the approach to the insurer issuing the policy. Contractual agreements or requirements can be used to transfer risk to another party or entity and hold harmless agreements.

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