How To Transfer Two-Wheeler and Its Insurance Ownership?
Purchased a second hand bike and need to transfer documents? In this article, we will tell you everything you need to know about it.
Whether you are selling your bike or giving a two-wheeler away, transferring ownership calls for more than simply turning over the keys. Legal completion of the procedure requires you to move not only the car but also the insurance connected with it. This guarantees that the new owner, therefore safeguards others on the road, and has at least the mandatory third party insurance from day one. Although the processes look difficult at first, you will be able to handle the transfer effortlessly if you know the necessary papers and procedures well. Let's look at what you need to know to move a two-wheeler and its insurance.
Why is Bike Ownership Transfer Important?
The legal and financial ownership clarity depends on a clear transfer of the bike papers. While the seller is released from any future obligations, the buyer has all legal rights to the bike when ownership formally changes and gets transferred to them. Even if the original owner no longer owns the two wheeler, without a valid transfer, they might be liable for mishaps, penalties, or legal problems concerning it. Updating ownership is also necessary to forward the insurance policy, therefore guaranteeing that the new owner has current coverage. This procedure protects both sides and finishes the legally and responsibly sold transaction.
What is The Procedure to Transfer Ownership of the Bike?
Transferring bike ownership calls for only a few simple measures to guarantee a legal and seamless transfer to the next owner. The process is set down here simply:
1. Acquire a Sales Agreement.
Start by creating a sales agreement with information on the buyer and seller, the brand and model of the bike, the registration number, the selling price, and any other terms decided upon. As a record of the transaction, both sides should sign this paperwork.
2. Submit Forms 29 & 30
Two forms— Form 29 (Notice of Transfer of Ownership of a Motor Vehicle) and Form 30 (Report of Transfer of Ownership of a Motor Vehicle )— have the seller complete and sign them. Both forms may be obtained from the official transport website or found at the Regional Transport Office (RTO). Together with some additional paperwork, the seller turns these papers into the RTO.
3. Submit All Required Documents
Usually required for the ownership transfer are these papers:
Original RC, or registration certificate, bike insurance policy
Pollution Under Control (PUC) certificate ID and address evidence for both sides.
Passport size photographs (usually two)
4. Pay Transfer Fees
The RTO charges a small transfer fee, depending on the state and region of your location. Turn in the fees along with your paperwork.
5. Get The New RC
The RTO will handle the transfer after confirming that all the paperwork has been turned in. Within a few weeks, the buyer should get the revised Registration Certificate (RC), which will show them as the new owner.
Following these guidelines will help both sides guarantee a flawless ownership transfer of the bike and legal compliance.
What is the Process of Transferring Two-Wheeler Insurance?
An essential first step once a bike is sold is forwarding two-wheeler insurance to the new owner. This guarantees that under the new ownership, the insurance policy will stay valid and provide coverage. The insurance should be transferred as follows:
1. Notify The Insurance Provider
The owner transfer should be reported to the insurance company by the buyer or seller after the transaction. Usually, this may be accomplished with a written application; the insurer will help both sides with further actions.
2. Turn in Necessary Materials
Usually, in order to handle the transfer, the insurer needs certain records, including:
New RC (Registration Certificate) registered in the buyer's name; No Objection Certificate (NOC) from the former owner (should necessary)
KYC documentation of the buyer proving of sale or agreement of purchase
3. Manage The Transfer Fee
Policy transfers often cost a modest fee charged by insurance firms. The buyer or seller should confirm the insurer's charge specifics.
4. Get A Certificate of Endorsement.
The insurer produces an endorsement certificate in the name of the new owner after the paperwork has been checked. Official confirmation of the transfer and completion of the insurance update comes from this certificate.
Following these guidelines guarantees continuous coverage for the buyer and legally updated insurance reflecting the new ownership.
FAQs
1. If I have a loan for the bike, can I move the insurance policy?
You can move the insurance contract even if the bike is still being paid for. But you need to let the lender know about the move and get their OK. It's possible that the funder needs to be put as a substitute as well.
2. Is there a time limit on when I can switch my bike insurance?
The insurance should be transferred within 15 to 30 days of the bike sale, but there is no hard and fast rule. This is to avoid breaks in coverage or problems with claims.
3. Is it possible to give the insurance policy to someone else without changing the name on the RC?
Not at all. The change of ownership on the Registration Certificate (RC) must match the transfer of the insurance policy. The insurance and bike ownership must both be up-to-date for coverage to be acceptable.
4. Do I need to buy a new insurance contract after selling the car?
There's no need to get a new strategy. You can give the new owner the policy that is already in place. The bonus might be changed, though, if there is a change in the type of the bike or other factors.
5. What happens if the move of bike insurance doesn't happen?
The seller may still be responsible for any future claims or debts if the move is not made. The insurance policy may still be in their name. The new owner wouldn't have proper insurance, and claims might be turned down.
6. Can I switch my two-wheeler insurance to a different company?
Yes, the new owner can choose to keep the same insurance company or switch to a different one when they take over the bike. In that case, the new insurance company will send out a new policy with the updated information.
7. Is it possible to give the new owner a third-party insurance policy?
Yes, a third-party insurance policy can be given to a new owner as long as all the necessary paperwork is turned in and the insurer agrees to the move. The move may, however, rest on the terms and conditions of the insurance company.
Read More:
Documents That You May Need For Bike Insurance Policy Renewal
