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This is the Best Way to Transfer a Bike Insurance Policy to a New Owner

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This is the Best Way to Transfer a Bike Insurance Policy to a New Owner

It takes a lot of work and consideration to purchase a used or pre-owned bike. You must ensure that the vehicle is carefully analysed in terms of the brand, cost, and model selection.

Making sure all paperwork is in order, including the change of vehicle insurance to your name, is another essential step in purchasing a used bike.

The seller must use the same level of caution and make sure that the buyer is named on all pertinent paperwork.

There have been cases where the new owner of a used bike filed an insurance claim, but the claim was denied because the insurance policy was still in the name of the prior owner.

This is so because the insurance coverage served is a legally binding agreement between the bike’s original owner and the insurance company, not the new owner.

The Registration Certificate (RC) and the insurance policy of the bike must be in the same person’s name in accordance with the terms and conditions of the insurance policy.

Many people who sell or buy old bikes fail to abide by this condition, which can lead to financial losses in the event of an unfortunate incident.

Let’s go over the method of transferring automobile or bike insurance in detail in order to provide more clarity on how to do so to a new owner.

What to Transfer When Buying a Second-Hand Bike?

When buying a second hand two wheeler, there are several ownerships to be transferred from old owner to new owner like registration certificate and two wheeler insurance policy.

Bike insurance transfers involve transferring your policy to the new owner of the bike. A transfer is typically required when buying or selling an older two-wheeler.

You must inform your insurance provider of such ownership transfers. As a result, the insurer’s records will be updated to reflect that the subject bike has a new owner.

How to Transfer a Bike Insurance Policy?

Giving the buyer your keys is only one part of selling a bike. These actions should be taken to properly transfer a bike to a new owner.

A transfer of insurance is a fairly straightforward process if you follow the right procedures. A comprehensive guide to assist you in this endeavour is provided below.

Step 1: Within 15 days of formally transferring ownership of the two-wheeler, submit an application for insurance transfer. It is best to begin insurance transfer procedures simultaneously with ownership transfer procedures.

Step 2: In order to transfer bike insurance coverage, some documents are necessary. Be sure to have the following papers with you at all times: The RC, paperwork stating the date of ownership transfer, the original insurance policy paperwork, the name of your dealer, and the history of premium payments for the insurance policy.

Step 3: It is necessary to have the owner’s and the buyer’s KYC documents. To keep a record of this transfer, carry your PAN card, Aadhaar card, driver’s license, and other documents.

Step 4: By adding another vehicle to your current policy, you can extend coverage to your new bike or two-wheeler. The pro-rata formula may affect the premium rate.

Step 5: As part of this policy transfer, the seller must provide proof of third-party insurance. This helps with future premium estimation for the plan.

Documents Required to Transfer Two Wheeler Insurance

The following papers must be supplied with the application to change ownership of a bike insurance in order to effectively transfer vehicle insurance:

  • Original RC.
  • Receipt from RTO for Forms 28, 29 and 30 (application form with the buyer’s and seller’s signature) and proof of sale.
  • No Objection Clause (NOC) from the previous owner.
  • Address proof of the buyer.
  • Passport-size photographs of the buyer.
  • Old and active insurance policy documents.
  • Inspection report of the vehicle by the insurance company.

Therefore, keep these things in mind and make sure to transfer your insurance for an older bike if it is sold. Both parties involved in such transactions gain from doing this.

Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise towards informing and educating the masses about the importance of health insurance.

When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less travelled territories.

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