Brand new Car
While you are out on the roads of India driving your favourite car, you need to carry certain documents along with you to avoid challans or fines. Some of the most significant documents are driving license, car insurance, and the registration certificate of the vehicle.
The purpose of the registration certificate is to state the ownership of the car. In certain situations, the owner needs to transfer the ownership of the vehicle as well as the insurance. Let us know more about how to transfer car insurance to a new owner!
What is car ownership transfer?
It is basically a process using which the ownership of a vehicle can be transferred or shifted from an existing holder to another individual. During this process, your name will be replaced from the registration certificate, and the name of the buyer will be mentioned there.
Which are the circumstances where you need to transfer vehicle ownership?
Documents that you will need for car ownership transfer
Following are the various documents that you need to submit if you wish to get the car ownership transferred:
How to transfer vehicle ownership offline?
If you want to go by the offline method, then follow the below-given steps and get the ownership of your car or two-wheeler transferred:
How to transfer vehicle ownership online?
Now you can transfer the vehicle ownership via online mode as well. Want to know the process in detail? Here we go!
So, if you have been wondering how to transfer two-wheeler ownership or your car’s ownership, then follow the above-mentioned steps and get the ownership transfer done conveniently.
How to transfer car insurance to the new owner?
Just like transferring the ownership of the vehicle is important; similarly, you need to transfer car insurance as well.
Car insurance transfer: It is the process that helps in transferring the car insurance policy from the existing holder to the other person (the buyer, the owner). The purpose of the process is to formalise the withdrawal of one party and the admission of another party in the insurance policy contract. Keep in mind that according to Section 157 of the Motor Vehicles Act, it is compulsory to transfer a car insurance policy within the first 14 days of the purchase date.
What is the importance of these 14 days?
The purpose of the process is to formalise the withdrawal of one party and the admission of another party in the insurance policy contract. Keep in mind that according to Section 157 of the Motor Vehicles Act, it is compulsory to transfer a car insurance policy within the first 14 days of the purchase date.
In case the buyer does not get the car insurance policy transferred in his name in these 14 days, the third-party cover transfer will be annulled. The owner can then no longer make any claim from the insurance company.
Why is the transfer of car insurance policy important?
Car insurance policy transfer is important for both the buyer and the seller of the vehicle.
From buyer’s POV: According to the IRDAI, the insurance policy must have exactly the same name and address which are mentioned in the registration certificate of the car. So, if you meet with an accident while driving your car and then raise the claim from your insurance company, it might deny your claim if you have not got the insurance policy transferred in your name.
From seller’s POV: In case the person whom you sold the car has met with an accident, the law may hold you legally obligated for compensating the losses which a third party may have suffered because of the new car owner.
Easy steps for car insurance transfer to the new owner
All you need to do is to apply for the transfer to your respective insurance company. The insurer will charge a nominal transfer fee from you. Also, you are required to furnish the following documents as well:
Q. When is the right time to apply for the transfer of vehicle ownership?
Ans: You should apply for the transfer of vehicle ownership within the first 14 days of the sale or purchase of the vehicle.
Q. Should I opt for transfer of vehicle ownership in case the car is being offered as rental?
Ans: No, in that case, you do not need to transfer the ownership of the car.
Q. Is it possible to transfer my NCB when I am buying a new insurance policy for my second-hand car?
Ans:Yes, it is possible to carry forward your NCB while you are buying a new insurance policy for your second-hand car. But you need to collect an NCB retention letter from the previous insurer of the car.
Q. What should I first apply for – a car insurance transfer or a transfer of registration certificate?
Ans:You need to first apply for the transfer of your registration certificate and then opt for a car insurance policy transfer.