Noteworthy Inclusions to Check During Car Insurance Transfer
If is often a trend among the modern-day car owners to upgrade their cars every couple of years. With newer variants introduced by manufacturers each year, you have more options to consider when making the switch. But when it comes to comes to transferring your car, there are two steps – first, the transfer of your car and second, its insurance policy. Let us understand each of them.
Transfer of the car
Transfer of ownerships involves changing the name of the buyer in its registration document. There is not just one, but a couple of documents like the road-tax certificate, Pollution Under Control (PUC) certificate and its insurance on which the title needs to be changed. At the time of transfer of the ownership, you need to submit the following forms to your regional transport office (RTO).
Form Number 28: An application for obtaining no-objection certificate (NOC) from the RTO with which your vehicle is registered.
Form Number 29: An NOC issued by you, the seller, declaring the handover of necessary vehicle-related documents to the buyer.
Form Number 30: An application for intimation of transfer or reporting of the transfer. This form supports the earlier form 29 and is required to be signed by both the seller and the buyer.
Excluding the above procedural requirements, transactional documents also need to be transferred which include a notarised sale deed and its delivery note signed by the buyer. In addition, a proof of payment should also be shared.
Transfer of car insurance
Once the above process is complete, the next step is to transfer the insurance policy. Transferring the insurance policy is a shared responsibility between the buyer and seller. No compensation is paid if the buyer fails to transfer the insurance policy and at the same time adhere to the timelines laid down. Moreover, if you are a seller, ensure the transfer is done to avoid any future liabilities.
Things to remember when transferring your vehicle insurance
When transferring the insurance plan, remember the following points –
- It is mandatory for the buyer to transfer the policy to their name. However, the seller also shares the joint responsibility to ensure cooperation in this process.
- The transfer of the policy must be completed within 14 days from the sale of the car.
- The third party car insurance for these 14 days operates in the favour of the buyer. But if the transfer isn’t complete within these 14 days, the same third-party coverage will cease to operate.
- Any insurance claim filed during the transfer process, it is not rejected but instead put on hold until the transfer process is complete and then paid by the insurance company.
- Any no-claim benefits earned during the policy tenure can be retained by the seller, but timeline of 14 days needs to be adhered.
These are few nifty tips to remember when you transfer your car insurance policy. Now that you can buy car insurance online, this process is also faster. Remember, not transferring the policy to the new buyer has consequences of legal liabilities. So ensure you transfer the policy within the stipulated time to avoid any future hassles. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.