What Happens To Acko Car Insurance When The Policyholder Dies?

Death is very hard to deal with. However, it is inevitable. With the death of a person comes a lot of paperwork. One such crucial piece of paperwork is the ownership of the car insurance policy. In usual cases, the ownership of the car is transferred to the legal heir of the owner in case of his/her death. Similarly, car insurance is also transferred to the legal heir of the policyholder. This article will provide you with details on what happens to the car insurance policy purchased from Acko General Insurance in case of the death of the policyholder.

Ownership of Acko Car Insurance After The Death of The Policyholder

In usual circumstances, the car insurance policy is transferred to the legal heir of the policyholder in case of death. If the policy has expired, the legal heir can inform Acko General Insurance and renew the policy in the name of the policyholder. The policy will then be transferred in the name of the nominee or the legal heir. The following are the parties involved when the car insurance policy has to be transferred - 

• Acko General Insurance 

In case of the death of the policyholder, the nominee or the family members must make sure to inform Acko insurance. This is mainly because they will need to make certain changes in their policy documents owing to the demise of the owner of the policy. 

• Legal Heir 

At the time of purchasing the car insurance policy, the policyholder will be required to mention a nominee for the policy. The nominee is entitled to receive the settlement amount along with the ownership of the policy in case of the death of the policyholder in case of an accident. If the policyholder has not provided the details of the nominee, the policy will simply be transferred to the legal heir of the deceased. 

• Regional Transport Office 

The RTO plays a major role while transferring ownership of the vehicle as well as car insurance policy. In case of the death of the policyholder, the legal heir will have to get the Registration Certificate of the car transferred from the name of the deceased to their name from the RTO.  

Cases of Natural Succession of Car Insurance Policy 

There are two common cases where there is natural succession for the ownership of the car insurance policy. They are - 

• In Cases Where Spouse is the Nominee

If the policyholder has mentioned the name of the nominee in the car insurance policy documents, the transfer of the policy will be smooth. However, the spouse of the deceased will be required to produce certain documents such as the RC of the car, death certificate of the policyholder, no objection certificate from the bank if the car is purchased on loan, RTO forms, Succession certificate, Marriage certificate, Aadhar card, etc. 

• In Cases Where Policyholder is a Single Parent 

In case the policyholder happened to be a single parent, the natural successor of the Acko car insurance policy would be the children of the deceased policyholder. If the policyholder has more than one child, the sibling that is chosen as the legal heir by due process shall be the one to get the ownership of the car insurance policy. The successor will require documents such as the death certificate of the policyholder, a no-objection certificate from the bank in case the car has been purchased on loan, original policy papers, a PUC certificate, the RC of the car and the succession certificate along with a self-attested Aadhar card copy. 

Take Away

When you are transferring the ownership of the car insurance, you must make sure to determine the legal heir without conflict. Inform Acko General Insurance of the change of ownership at the earliest. The nominee or the successor will be required to approach the local RTO to transfer the ownership of the car before the car insurance policy. Driving without a valid insurance policy can be hazardous and legally problematic. Thus, complete the documentation process before taking your car out.

Also Read: 

How Do I Know When My Car Insurance Policy Is Due?

Best Car Insurance Add-on Covers And Their Significance

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.