Know how to transfer your two-wheeler insurance contract to a new owner
Due to the constant upgrades of most two-wheeler models, most owners decide to sell their vehicles and buy new ones. According to the latest National Family Health Survey report, about 49.7% of Indian households own a two-wheeler. Additionally, the two-wheeler market is expected to see sales of 26.6 million units by 2025.
When selling an old bicycle, individuals must give up their Insurance conditions in the name of the new owner to avoid legal hassles.
Steps to transfer the two-wheeler insurance contract
When an individual sells his old two-wheeler to buy a new one, the first essential step is to transfer ownership of the old vehicle and the insurance contract to the name of the new owner. This is followed by informing the respective Regional Transport Office (RTO) of the sale of the vehicle.
That said, a bicycle insurance transfer process is relatively convenient. You can simply follow these steps:
Step 1: Request the transfer of the two-wheeler insurance within 14 days of the transfer of ownership of the vehicle. Inform the insurer of the transfer of ownership as soon as possible.
2nd step: Submit the necessary documents, such as the registration certificate (RC), insurance documents, documents showing the transfer of ownership of the vehicle, the policy premium payment history and the bill of sale of the vehicle.
Step 3: Both buyer and seller would be asked to submit KYC documents, such as PAN card, driver’s license and Aadhaar card.
Step 4: Some insurance companies may inspect the vehicle before the transfer of ownership.
Step 5: After verification, the insurance company transfers the benefits of the policy to the new owner.
Note that the new owner will have to take out a new insurance policy if he initiates these steps after 14 days of buying the used vehicle.
Documents required for the transfer of the bicycle insurance policy
To request an insurance policy transfer to the new owner, individuals must provide a few essential documents, such as:
– Vehicle registration certificate
– Form 28, 29 and 30
– Insurance policy details
– Deed of sale of the vehicle
– Ownership transfer documents
– Premium payment history for his insurance plan
– No Objection Certificate (NOC) from previous owner
– A passport size photo of the buyer and the seller
– Proof of address of the buyer and the seller
Advantages of the transfer of the two-wheeler insurance contract for the seller
While the benefits of transferring a two-wheeler insurance policy are obvious to a buyer, a seller may feel they will not benefit from the process. However, this is not true.
When a seller opts for a transfer of two-wheeler insurance, he benefits from the following advantages:
– Legal protection
In the event that a new owner causes damage to a third party, the insurance policy will only be useful if their name appears in the policy document. Otherwise, the former owner will be held responsible for all damages caused to the third party.
– No claim bonus
Individuals who have not raised a single claim during a policy period are eligible to receive a “No Claims Bonus (NCB)”. This bonus is a reward and can contribute significantly to reducing the insurance premium. When transferring a policy, a person can apply for the PNE certificate, which will apply to their next insurance policy. This will help you keep your NCB benefits intact.
Also, to maximize the benefits after purchasing a new two-wheeler, individuals can consider purchasing a two-wheeler insurance policy from Bajaj Finance.
Advantages of taking out a two-wheeler insurance policy with Bajaj Finance
Taking out long-term insurance for your two-wheeler will bring you the following advantages:
– This plan can be extended for more than three years with minimal impact on the third party premium amount.
– This policy comes with its own damage cover, which provides comprehensive protection against any injury, harm or damage to an insured.
– With each claim-free year of insurance, policyholders can acquire additional benefits in the form of PNE.
– This two-wheeler insurance package also covers optional extensions, including liability to cleaner, paid drivers or any other workers, loss of accessories, personal accident coverage, etc.
– This is a comprehensive insurance policy for two-wheelers, offering extensive personal injury coverage and third party coverage benefits.
– It also covers injuries sustained by an insured in the event of an unforeseen road accident.
Considering the benefits of bike insurance policy transfer, individuals should not delay in initiating this process. Also, if you are planning to buy a new vehicle, you can search online for comprehensive bike insurance plans offered by Bajaj Finance Limited. So that you continue to enjoy the benefits of extended coverage and stay safe under the law.
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