Month: October 2020

Registration is a process of registering the vehicle in some specific person’s name. This is done at the time of purchase of the vehicle. Without a valid vehicle registration, it is illegal to ply the same in India. Once a vehicle is registered, you can officially drive the same anywhere within the geographical boundaries of India. 

Registering a motor vehicle in one’s name was quite a tedious process but that seems like a distant past now. The Government of India has launched its official website named “Vahan” as a part of the ‘Digital India’ drive. Now the entire procedure has become simple. Thus, it has become quite easy for you to follow the process without any hassle. 

What is Vehicle Registration?

Vehicle Registration is a process whereby you get your car number plate and it is registered under the list and records of the Government. The main motto of registration is to have a linkage between you as the owner and your vehicle through a distinct identification number and therefore shows a car registration number plate. It is of extreme importance to register your vehicle so that the Government can curb any illegal activities in India. One of the main important reasons for registration of the vehicle is to get valid insurance coverage, without which is not possible. 

According to the Motor Vehicle Act, 1988, section 39A, a vehicle is permissible to be driven in public roads only after registration by the respective transport authority for registration. Hence, the registration certificate is a certified legal document which acts as a proof that your vehicle is recorded and verified in Government records. In India, registration within 7 days from the delivery date of the vehicle is compulsory.

What is Re-Registration of the Vehicle?

There are 2 situations under which a vehicle needs to be “RE”-registered, i.e. registered again. Those situations are: 

1. Situation 1:
   It is compulsory for all private vehicles to do the re-registration of the vehicle after 15 years from the date of the initial registration as per the Central Motor Vehicles Act. After this, the registration is renewable at a gap of 5 years till the RTO declares the vehicle to be safe and fit for driving on the roads in India
2. Situation 2:
   It is necessary for you to re-register your vehicle if you move from one state to another with your vehicle.
   The law says: If a motor vehicle, when registered in one particular state, is present in another state for any valid reason, for more than twelve months’ time, you would have to transfer your vehicle to the new state and RE-register the same. So, if you simply visit another state for a tenure of 12 months or less, then there is no need to re-register your vehicle.

   However, if your period of stay exceeds 12 months, then you need to apply for a Transfer and Re-Registration. The process of Transfer of Vehicle is:

1. As the registered owner of the vehicle will have to put an application to the same RTO where the vehicle was registered
2. Then you need to fill in the documents and submit them to the authority of the new RTO in the respective jurisdiction for the assignment or re-registration of the vehicle 
3. There is a timeframe of 1 year for this entire process to be completed, as mandated by the Central Government.

The procedure involved in Re-registration of vehicle

Steps for re-registering of the vehicle under certain scenarios:

1. Situation 1:
   In order to re-register your vehicle after a tenure of 15 years of initial registration, you will have to put forward an application form. Your vehicle has to be presented before the RTO for scrutiny and the essential fee has to be paid to the RTO. After the vehicle is scrutinised and verified with all other documents, the RTO will be in a position to issue a fresh Registration Certificate or an RC. For car registration renewal, the below-mentioned documents need to be submitted to the RTO:
1. Properly filled Form Number 25 which is the application of renewal of registration
2. Registration Certificate in original
3. A valid Pollution Under Control Certificate or the PUC
4. Insurance Certificate of the Vehicle
2. Situation 2:
   In order to transfer your registration from one state to the other, there are two vital aspects which you should be careful about which are:
1. Vehicle Hypothecation Position:
   If the vehicle had been taken under finance and it has the hypothecation done by the financer in the Registration Certificate. In this case, you need to get the No Objection Certificate or the NOC from the respective financer beforehand, so that you can register your vehicle in the other required state without any hassles
2. Compulsory Road Tax:
   On transferring the vehicle from one state to another,you may have to pay the road tax of the new state at a depreciated price of the vehicle. If you need to apply for a refund of the Road Tax from the state you are moving for the remaining tenure of the tax validity, you need to apply for the same at the time of obtaining the NOC.
   Road Tax is levied by the State and the Central Government, and hence each state has its own specifics and basis of road tax calculation which you need to pay accordingly.

Steps for car registration renewal

Let us now see the 3 broad steps of car registration renewal in details for a better understanding: 

1. Step 1: The first step for you is to get the No Objection Certificate or NOC.
   Some important points for you to note for obtaining a NOC are:
1. Notary attested self-declaration affidavit has to be furnished by you on an INR 10 stamp paper stating that all relevant documents for the vehicle are original with no outstanding dues for the vehicle
2. A No Objection Certificate should be attained from National Crime Record Bureau or NCRB affirming that its not a stolen vehicle
3. A No Objection Certificate from the financer in Form Number 35 if the vehicle had been taken on loan and the same hasn’t been repaid yet
4. You need to provide 3 properly filled copies of:
1. Form No 27, i.e. the application for the assignment of new registration, 
2. Form number 28, i.e. the application and 
3. The grant of No Objection Certificate together with 
4. NOCs from the Traffic Police, 
5. NCRB as well as 
6. The financer to obtain the NOC from the respective RTO
5. Other vehicle documents like the PUC Certificate, copy of Smart Card, copy of Chassis imprint, proof of identity and proof of address have to be submitted. 

The RTO then will issue an interstate automobile transfer NOC within a timeline of 2-3 weeks.

2. Step 2:
   There are a specific set of documents needed for car registration renewalin other state mentioned as below which you need to submit:
1. Documents that need to be shown in the original include Smart Card, Insurance Document, Pollution Under Control or PUC Certificate
2. The Original Invoice so that the RTO can compute the road tax basis the depreciation of the vehicle
3. Step 3: Re-registration of vehicleand Road Tax payment

   After the above step, you can apply for Re-registration of the vehicleand pay the appropriate road tax with a certain set of documents for the vehicle, your personal documents, NOCs etc. The following documents are to be submitted by you at the RTO

1. Re-registration of the vehiclecan be made in Form Number 20, the application for registration for your vehicle and Form number 33, the application of intimation for address change
2. If you have a used vehicle, you must submit the relevant documents for the transfer of title or ownership
3. After the vehicle is being registered, you can apply for a refund of tax as appropriate

List of documents needed for re-registration of a Vehicle

Here is the exhaustive list of documents that are needed for re-registration of a Vehicle:

1. Application Form in Form Number 27 as mentioned above
2. Registration Certificate
3. No Objection Certificate as mentioned above
4. Residence Proof
5. Certificate of Insurance
6. PUC
7. Form Number 28 as mentioned above
8. Form Number 20 as mentioned above
9. In the case of commercial vehicles, Challan clearance from the department of traffic police
10. Certificate of Fitness
11. PAN Card or Form 60 as applicable
12. Fee for parking
13. Certificate manufactured about emission standards
14. Sketch imprint of the Chassis and the Engine
15. Your Date of Birth proof
16. Proof for the address of the seller
17. Sign identification of the seller

Fees re-registration of a Vehicle

There is a charge for re-registration of the vehicle which must be paid before the process is completed. Here is a list of the required fees that need to be paid for re-registration of a Vehicle:

Points to keep in mind while applying for a Re-registration of the vehicle:

The Registration Certificate can be renewed easily and you need to keep in mind the following points:

1. Within 60 days of the Registration Certificate expiry, the fresh application for the renewal of the Registration Certificate has to be made via Form number 25 to the particular authority in registration in the same area the vehicle is registered
2. Payment has to be clear for all the taxes which are unpaid if there are any
3. Payment has to be made as per in the CMVR Act of 1989

The car registration renewalof a private vehicle is effective for a period of 5 years. You are allowed to renew them every 5 years as mentioned above.

Re-registration is a legal and easy process which can be quite hassle-free if you get the documents beforehand. All you need to do is to follow the process, get the right documents and get the vehicle re-registered.

FAQs

1. Is re-registration and reassignment of registration certificate same?

   Yes, re-registration and reassignment of registration certificate are the same and the same applies when you are moving from one state to the other.

2. Is Transfer of ownership related to re-registration?

   No, transfer of ownership and re-registration are different. Transfer of ownership happens under the following 3 scenarios:

   • Transfer of ownership when you are selling your vehicle to another buyer

     As soon as the vehicle is sold off, the name of the buyer is recorded as the registered owner of the vehicle instead of the earlier registered owner and this process is called as the transfer of ownership.

   • Transfer of ownership upon the death of the owner of the vehicle

     As soon as the registered owner of a vehicle dies, transfer of ownership is effective in the name of the legal heirs of the expired registered owner and the usage of the vehicle can be for a period of 90 days within 30 days from the date of death of the owner.

   • Transfer of ownership in auction

     When a vehicle is sold in public auction, the name of the buyer is recorded as a registered owner instead of the earlier registered owner and once again this is the process called and named as the transfer of ownership.

3. Is No Objection Certificate mandatory in case of re-registration?

   Yes, it is compulsory to get the No Objection Certificate and is a crucial step in the process of re-registration of your vehicle.

4. What documents are needed for address change in the registration certificate?

   You can change the address in the RC book once you are shifted to a different state. As an owner of the vehicle to register a new address in case of any change in the address, you need to apply for the same with a certain document which is as follows:

   • Form number 33 application form for address change in the RC book
   • RC book
   • Your new address proof
   • Pollution Under Control Certificate
   • Certificate of Insurance
   • No objection certificates
   • Fee for the Smart card fee or the registration certificate
   • Your attested PAN card copies or form 60 as appropriate
   • Sketch imprint of the Chassis and the Engine
   • Your signature proof as an owner
5. What documents are accepted as proof of residence?

   Any one of the following documents is accepted as proof of residence.

   • Ration card
   • Passport
   • Voters’ Id
   • Aadhar Card
   • Life insurance policy
   • Utility bills like telephone bill, electricity, gas bill
   • State or Central Government issued payslip
   • House Sale or Rent Agreement

Buying a second-hand bike is quite common in today’s age. A second-hand bike is more affordable and it also fulfils your conveyance needs. That is why the used vehicle market is growing as sellers sell off their existing bikes to buy newer models or to invest in a car and buyers looking for affordable options buy them. While buying and selling used bikes has become easy in today’s times, you should know the process of transferring the ownership of the bike. As long as the used bike is not transferred from the name of the seller to the buyer, the purchase process is not complete. Thus, it becomes necessary to understand how the ownership is transferred if you sell or buy a used bike.

A transfer of ownership not only completes the process of buying a second-hand two-wheeler, but it is also essential to avoidany future problems and difficulties concerning registration of the vehicle, insurance policies for the vehicle, etc. Moreover, the Motor Vehicles Act, 1988 also mandates the transfer of ownership if the bike is bought and sold second hand. So, let’s understand the process of Bike Ownership Transfer in detail.

Process of Bike Ownership Transfer

For the purpose of Bike Ownership Transfer, you should take the following steps –

• If you are the buyer you are required to submit an application form for transferring the ownership of the two-wheeler. This form should be submitted to the same RTO office where the two-wheeler or bike that you are buying was previously registered
• You are, then, required to submit two forms at the Directorate of Transport office. These forms are Form 29 and Form 30. Form 29 is a No Objection Certificate which should be signed by the seller stating that the seller has no objection in transferring the ownership to the buyer. Form 30 is the report or intimation of transfer of ownership. This form should be filled by you, the buyer as well as the seller and it would contain the signatures of both parties. Along with these forms, you would also have to submit certain documents like tax paid receipts, insurance, RC, proof of address of the seller, a photograph of passport size, etc. All these documents should be submitted in original
• Once all the necessary verification process has been done by the RTO, the ownership documents and the insurance documents of the two-wheeler would be transferred to the buyer within 14 days
• If the buyer and seller of the bike live in the same State, the buyer would have two weeks’ time to submit the forms and documents for transfer to the concerned RTO. On the other hand, if the buyer and the seller live in different States, the forms and documents for the transfer of the vehicle should be submitted within 45 days
• If the seller of the two-wheeler dies, the buyer should inform the RTO about the death of the seller. The death certificate should be submitted along with the forms and documents of transfer of ownership. The buyer can, then, apply for Bike Ownership Transfer within 3 months of the death of the seller.

Documentation required for Bike Ownership Transfer

To complete the process of transfer of ownership of the bike, the following documents would have to be submitted –

1. Certificate of Registration:
   This is a compulsory document for the transfer of ownership to be effected. The seller should give the certificate of registration to the buyer of the bike. This document confirms and endorses the fact that the bike or the two-wheeler belongs to the seller.
2. Pollution Certificate or PUC:
   Once again, a mandatory document which states that the two-wheeler has followed all the rules relevant to pollution control and is PUC certified.
3. Certificate of Insurance:
   An insurance cover on the bike is necessary as per the Motor Vehicles Act, 1988. Due to this rule, the bike, which is being bought, would have an insurance cover on it and the policy would be in the name of the seller. This insurance policy would also have to be transferred in the name of the buyer and for the transfer to take place the certificate of insurance would be required. At the time of buying the bike, the insurer would have to be informed of the sale of the bike so that the insurance cover can be transferred in the name of the buyer.

Other documents required for Bike Ownership Transfer

The above-mentioned documents are the three important documents which would be required in all cases of buying a second-hand bike. Besides these three mandatory documents, there are other documents too which are required to be submitted when you are buying or selling a second-hand bike. These documents depend on how the bike is being bought or sold second hand. So, let’s have a look at the documents required in different instances of bike ownership transfers –

1. In case of standard purchase and sale of a second-hand bike:

   If you are buying or selling a second-hand bike under normal circumstances, the following additional documents would be required to be submitted –

   ⮚Form number 29, which is the No Objection Certificate and which has been filled and signed by the seller of the bike

   ⮚If the two-wheeler is being bought or sold within the same State, a No Objection Certificate from the RTO would be required. If, however, the two-wheeler or bike is being transported from a different State, then you would have to provide the No Objection Certificate or NOC of the entry tax for that State. However, in the case of transporting from another State, the bike should not be more than 30 months old.

   ⮚Original RC book of the bike

   ⮚Receipts of road tax paid on the bike

   ⮚Passport-sized photographs of the seller

   ⮚If the seller had bought the two-wheeler through a two-wheeler loan and the loan has not been repaid fully at the time of sale of the bike, then a No Objection Certificate or NOC from the lender would also be required. The bank or the financial institution from where the loan was availed should issue a No Objection Certificate on the transfer of the bike. This certificate is also needed to be furnished to the RTO at the time of transfer

2. In the case of Death of the Owner:

   If the owner of the bike dies, the buyer would have to submit the below-mentioned documents for transferring the ownership of the bike in his/her name –

   • Form number 30, which is the notice of transfer, has to be filled appropriately with the accurate details of the bike. The chassis inscription of the bike should also be attached with the form when it is submitted.
   • Form number 31 which is the form for transfer of ownership of a vehicle in case of death of the seller
   • Form named TCA which is the intimation of transfer by the buyer and TCR which is the intimation of transfer by the seller,
   • Since the seller has died, the death certificate of the seller would be required to be submitted to the RTO
   • Other important documents like the succession certificate, affidavit from the preceding owner of the vehicle and the No Objection Certificate from the financial institution or the financer (if the bike was financed) are also needed.
   • All the documents pertaining to the vehicle together with the fee for registration. As per Rule 81 of the Central Motor Vehicles Rules 1989, the fee will be charged as appropriate.

3. In case of the auction of the bike:

   If a bike is being bought at an auction, the following documents would be required –

   1. Form number 32 which is the application for transfer of ownership of the bike when the bike is bought at a public auction
   2. PAN card of the buyer of the bike. If, however, the buyer does not have a PAN Card, Form 60 should be filled and submitted
   3. Vehicle’s Chassis and Engine pencil print
   4. Proof of date of birth of the buyer
   5. Proof of address of the buyer
   6. An undertaking by the buyer
   7. Passport size photographs of the buyer of the bike
   8. Tax clearance certificate
   9. A certificate which certifies that the vehicle or the bike is sold to the new owner in an auction which is being directed by the Central Government or the State Government
   10. A certificate which confirms that the auction has been directed by the Central Government or the State Government

Two-wheeler ownership transfer fees

To get the ownership transferred in your name, you would have to pay a transfer fee to the RTO. This transfer fee is equal to INR 30.

So, if you are buying a second-hand bike, do know the process for the transfer of the bike and the documents which would be needed for such transfer. Only when the process is followed and you submit all the relevant documents would you be able to become the owner of the second-hand two-wheeler that you buy. So, remember the process, arrange for all the relevant documents and buy that second hand bike which you need.

Frequently Asked Questions

1. How can I get the insurance policy transferred in my name?

   Only transferring the ownership of the bike is not enough, the insurance policy on the bike should also be transferred. To transfer the insurance policy, you should inform the insurance company of the purchase of the second-hand bike. You would, then, have to submit the new RC book which contains your name as the owner of the vehicle, original policy document, your address proof and passport-sized photographs. Once the documents are submitted, the insurance company would verify the documents and transfer the insurance policy in your name. You might be required to pay a fee for transferring the insurance policy in your name. This fee would depend on the insurance company and would be communicated to you when you request for transfer of the policy.

2. Within how much time should the insurance policy be transferred?

   The insurance policy should be transferred within 14 days of buying a second-hand bike.

3. I am buying a second-hand bike from another State. Where should I apply for transfer of ownership?

   The application for transfer of ownership of the bike would have to be made in the State where the bike is registered. 

4. I am selling my bike second hand. Would I lose the accumulated no claim bonus on my bike insurance policy when I transfer it to the buyer?

   No, the no claim bonus remains with the seller when the bike insurance policy is transferred. So, you would be able to retain the no claim bonus when you transfer your insurance policy to the buyer of your bike.

5. If the insurance policy has lapsed on the bike, can the transfer of ownership be done?

   Usually, the bike insurance policy would have to be renewed when the bike is being sold second hand. When the policy has been renewed by the seller then the process of transfer of ownership can be done.