HOW TO CHANGE VEHICLE OWNERSHIP AND ITS INSURANCE

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?

• Transfer of ownership after an auction: In case the car is auctioned off, you need to make sure that the transfer of ownership takes place. In this situation, the name of the new owner will replace the name of the original owner on the registration certificate.
• Transfer in case of car purchase by another party: Suppose you have sold your car. In this case, the name of the buyer has to be put on the certificate of registration. 
• Transfer after the demise of the car owner: In case of the unfortunate demise of the owner of the vehicle, the legal heir needs to inform the RTO within the first 30 days of the death of the owner. In this case, as well, the name of the original owner is replaced by the name of the new owner.

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:

• Original registration certificate
• Car insurance certificate
• Documents for address proof
• PUC certificate
• PAN card of both the parties
• Form 28, 29, 30, 31, 32 and 35
• NCRB or National Crime Records Bureau acknowledgement form in case the vehicle was earlier involved in some activities which go against the law of the land.

 

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:

1. First of all, you need to notarise the Agreement of Sale. This agreement includes the following details:

• Registration Certificate
• Insurance
• Mode of payment
• Condition of the vehicle

1. Once you make the payment, both the parties need to fill the Form 29 AND Form 30 and submit them to the local RTO.
2. Next, you need to hand over important documents like insurance certificate, registration certificate, PUC certificate, etc., to the new owner. You need not hand over the original invoice of the vehicle.
3. The buyer will then apply for a clearance certificate from the RTO. For this, he needs to submit a requisition letter and a self-addressed envelope affixed with stamps and carrying the necessary documents.
4. Then the buyer needs to make the payment for the ownership transfer fee at the RTO. There he will receive two payment receipts. These receipts need to be attached with necessary documents like PAN card, insurance, clearance certificate, PUC certificate, passport-sized photograph, etc.

 

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!

1. Visit the Parivahan Sewa website.
2. There, click on the tab “Online Services.” You will have to select the option “Vehicle Related Services.”
3. There you will have to enter the vehicle registration number and further click on “Proceed.”
4. Next, you need to click on Misc.
5. Then you are required to enter the mobile number of the buyer and tap on “Generate OTP.”
6. Then you have to put the OTP and further click on “Show details.”
7. Further, you have to select the option of "Transfer of Ownership." You will find this option under the section "Application Selection."
8. Here you will have to enter a few important details like:

• Current address
• New owner’s details
• Insurance details
• Permanent address

1. You need to pay the fee after clicking on the “Payment” option. Once you make the payment, it will generate two payment receipts as well as Form 29 and Form 30.
2. Download the hard copies of these documents and make sure both parties sign them.
3. Also, you need to submit documents like a copy of the insurance policy, registration certificate, PUC, etc., either manually, or you can also mail them to the new RTO.
4. Once all the documents get verified successfully, the buyer will receive the new registration certificate in the mail.

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:

• NOC from the existing policy-holder
• Form 29 and 30
• Application form
• New registration certificate
• Inspection report (The insurance company itself conducts this inspection)

FAQs

 

Q1. 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.

 

Q2. 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.

 

Q3. 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.

 

Q4. 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.