Two Wheeler Insurance Transfer Explained
Published On Nov 21, 2020 6:00 PM By InsuranceDekho
When selling your two wheeler it is also important to transfer your insurance from your name to the name of the new owner or transferee. Read all about how to do so and the benefits of this procedure.
When it comes to selling your old scooter or bike and buying a new one, the whole process involves informing the RTO of the transfer of ownership and registering your new vehicle. Also a part of this process is transferring your insurance policy from one policyholder to the other. Let’s read all about the process of transferring two wheeler insurance.
Process of Transferring Two Wheeler Insurance
1. The person who the insurance is being transferred to is known as the transferee.
2. The transferee must apply to the insurance company in writing within a stipulated period of time.
3. The transferee would be required to submit documents relating to proof of delivery of the vehicle to prove that it is now in their ownership.
4. The RC (registration certificate) of the vehicle would be required to be submitted.
5. Also, the following details would be required to be submitted to the insurance company to enable them to make the necessary changes in the policy.
- Name of previous policyholder and previous owner of the vehicle
- Insurance policy number
- Date of insurance
Benefits of Transferring Two Wheeler Insurance
You may think that on selling or transferring the ownership of a vehicle you would no longer have any responsibility related to it. However, if the correct paperwork is not executed with regards to transferring the insurance to the new owner of the vehicle, you may be held financially or legally liable for the actions of the new owner. Just as it is important to have all the correct paperwork executed with regards to the transfer of ownership, transferring the insurance is equally important. It has the following benefits:
1. Preventing Future Liabilities
If the new owner of the vehicle encounters an accident which causes damage to a third party, if your name is on the policy then you would be held legally and financially liable for the same. To protect yourself from such a situation it is important to have the insurance transferred to the new owner of your bike or two wheeler.
2. Withholding No Claim Bonus
No Claim Bonus is a discount offered to you by insurance companies to reward you for riding safe and not making any claims during the policy tenure. When transferring the insurance to another name, inform your insurance company if you are eligible for No Claim Bonus and they will issue you a certificate regarding the same and you can continue to accumulate the discount the next time you pay a premium on an insurance policy.
The process to transfer the insurance from one policyholder to the other is uncomplicated and simple. Thus, there is no reason to overlook this procedure. It is important to do so as it is extremely beneficial to you in protecting you from possible future liabilities and enabling you to avail of discounts in future.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.