How to Transfer Ownership and Bike Insurance
My friend Raj wanted to sell off his existing bike to buy the new trendy model which everyone was talking about. He was a bike enthusiast and his promotion gave him the excuse to splurge on a new bike. Thanks to the online platform, he also found many interested buyers for his bike but what he was clueless about was how to transfer his bike’s ownership and what to do with the existing insurance policy.
Raj’s problem is not uncommon. Most of you who are looking to sell your bike second-hand don’t know how to transfer the ownership of the vehicle. Moreover, when it comes to the attached insurance policy, the confusion increases further. After all, transferring ownership and insurance are both legal steps which require you to follow specified procedures. Considering the procedures to be difficult most of you are ignorant about the process of transfer of ownership and bike insurance policy. So, let’s un complicate things for you –
Selling your bike second hand requires you to deal with two main aspects –
- Transferring ownership
- Transferring insurance
Both these aspects have a well-defined procedure. Let’s understand what the procedures state –
Process of transferring ownership of the bike
- You should first approach the RTO of the state in which your bike is registered. You are required to inform the RTO regarding the sale of your bike and the transfer of ownership. If you do not know your nearest RTO office, you may find the same by clicking on this link.
- To inform the RTO, you are required to submit some forms and documents. These include the following –
- Completed Form 28 which is for transfer of ownership
- Completed Form 29 which is a No Objection Certificate. The form should be filled and it should contain your (the seller’s) signature
- Completed Form 30 which is an application for intimation of transfer or report of transfer. This form should be filled and signed by both you (the seller) and the buyer of the bike. Moreover, you also have to attach a print of the chassis of your bike
- Registration Certificate
- Tax certificate
- PUC Certificate
- Copy of the bike’s insurance policy
- Your address proof
- Passport sized photographs
- If the bike is registered at another state’s RTO and the sale is happening in another state, a NOC from the registered RTO would also be required
- If the bike is on loan, NOC from the lender would also be required
- If the actual owner of the bike dies and then the bike is being sold or acquired by anyone else, additional documents would be required. They would include the death certificate of the owner, Form 31, succession certificate and an affidavit from the successor.
- A registration fee would also have to be paid when transferring ownership. The fee should be paid along with the submission of all relevant documents.
Once you follow these steps, the process of transfer of ownership would start and your bike would be legally transferred in the buyer’s name. The transfer process should start within 14 days from the date of sale of the bike. However, if the buyer resides in another state, the transfer should commence within 45 days of the sale of the bike.
Process of transfer of bike insurance policy
Once you are done with the transfer of ownership, you are required to transfer the insurance policy. In fact, it is the duty of the buyer of the bike to get the insurance policy transferred in his name within 14 days of buying the bike. If not, any claim made would not be paid. You should also help the buyer with the transfer process as you would be legally held liable for any claim faced by the buyer till the policy is transferred.
Bike insurance in India can be either third-party insurance or comprehensive insurance policy. These help you stay protected against any damages in case of an accident.
Browse comprehensive bike insurance plans in detail by clicking the following button.
Transferring insurance is quite a simple process actually. To do so all you have to do is follow the below-mentioned steps –
- Inform the insurance company about the sale of your bike
- Some documents need to be submitted to the insurer to transfer the insurance cover in the name of the buyer. These documents would be the following –
- The new RC book of the bike containing the name of the buyer. If the new RC book is not yet available, the proof of transfer of ownership can be submitted for the time being. Later, when the RC book is available, it should be submitted to the company
- Original policy bond
- Address proof of the buyer
- Passport sized photographs of the buyer
- Once the documents and request for transfer is submitted, the insurance company would begin the transfer process
- The bike might be inspected in some cases
- A fee would also be required to be paid for transferring the policy
- You should avail the no claim bonus certificate from the insurance company so that the accumulated bonus of the policy can be retained in your name
- If the documents are in order and the transfer fee is paid, the insurance policy would be transferred in the name of the buyer
The whole process of insurance transfer should also be done within 14 days of selling the bike. The third-party cover would automatically operate in the name of the buyer from the date of sale for up to 14 days. It is assumed that during this process the transfer process would be completed. However, once 14 days are over and the policy has not been transferred, the third-party cover would also cease.
As stated earlier, though transferring the policy is the burden of the buyer, you, as a seller should be involved in the process. Here are the reasons why –
- Retention of No Claim Bonus – any bonus you earn because of not making any claim in the previous policy years entitles you to a discount. It was your safe driving which caused no accidents and, thus, incurred no claims. Therefore, you are entitled to enjoy the benefits of the No Claim Bonus earned on your policy, especially when it allows premium discounts. If you do not transfer the policy, you cannot avail the No Claim Bonus Certificate and you lose the discounts earned by you. Would you want that?
- Freedom from future liabilities – suppose the new buyer of your bike causes damage to any person or property while driving the bike. If a third party claim is raised on your policy and you are named as the policyholder, you would be legally liable. Though your insurance policy would pay off the financial claims, you would have to ensure such claim settlement. Transferring the policy, therefore, frees you from future liabilities.
Transferring the ownership and insurance policy of your bike is essential when you are selling it off to another person. It is legally required and is also beneficial. My friend Raj didn’t know about it and so he was given the complete lowdown on the transfer process. You have been informed too. So, the next time you sell your bike, remember what you have to do.
If you’re transferring your bike insurance in order to buy a new bike, we suggest you click on the button below to browse through the variety of attractive insurance plans for new bikes available at our portal.
Simply enter a few details and compare the most relevant plans as per your needs at the most competitive premiums and attractive insurance declared values!
Read more RTO forms for availing a driving license
Read more Everything you need to know about two wheeler policy in India
Read more Top 5 ways to get discount on two-wheeler insurance