How To Transfer Bike Insurance?

Transitioning vehicle ownership is like turning the page to a new chapter in your life story. Your vehicle has been by your side through countless adventures and milestones. Whether you are trading a sleek sports bike or receiving a cherished classic from a family member, each change signifies a fresh start in your ownership journey.

As life unfolds, the circumstances surrounding your vehicle may also change. You might be saying goodbye to an old classic bullet or welcoming a new addition to your garage. Hence, understanding the transfer process is key for a smooth vehicle ownership transfer. This is why, in this article, we will guide you through the steps of transferring vehicle ownership. So, let's buckle up and begin.
 

Why Should You Transfer A Bike Insurance Policy?

When you sell your bike, the insurance linked to it needs to be transferred as well. This is because bike insurance is interlinked to your vehicle and not the person who owns it. If you do not transfer the bike insurance policy, you could face legal issues if there is any damage involving a third party. Here's why you need to transfer bike insurance –

• To Avoid Claim Rejection
  If you cause any damages to someone or their property and the insurance plan is not in your name, or if there is a mismatch between the name in the RC and the insurance policy, any claims might be rejected.
   
• To Avoid Any Financial Obligations
  In case your claim does not get approved, you will be responsible for covering all the costs resulting from the accident.
   

Documents Required To Transfer Bike Insurance To New Owner

To transfer bike insurance to the next owner, you will need to provide specific documents along with a transfer fee. Here's what you will need –

1. Application Form
   The application form serves as your request for the transfer.
    
2. Form 28 (NOC)
   Form 28 is essential for obtaining a No Objection Certificate (NOC) from the RTO. It confirms that you do not have any claims or dues on the vehicle, clearing the way for the transfer of ownership.
    
3. Form 29
   Form 29 notifies the RTO that the ownership of the vehicle is being changed to another person. It informs them that all necessary documents, including the Registration Certificate (RC), insurance policy, and Pollution Under Control (PUC) certificate, are being handed over to the buyer by you.
    
4. Form 30
   Form 30 confirms the transfer initiated by Form 29. It officially acknowledges that you have transferred all legal responsibilities of the vehicle to the buyer.
    
5. NOC (No Objection Clause)
   You will also need to get a NOC, indicating they have no objection to transferring the insurance policy to the new owner.
    
6. Inspection Report
   This report is conducted by the insurance company to assess the condition of the vehicle before the transfer of ownership.
    
7. New Registration Certificate
   After you complete the above steps, you will then receive a new registration certificate in the buyer's name.
    
8. Clearance Certificate
   If you are migrating the vehicle to a different Regional Transport Office (RTO), whether within or outside the state, you will need this certificate. It verifies the transfer and includes details of both buyer and seller, along with vehicle information.
    

How To Transfer Bike Insurance?

Transferring bike insurance is crucial when you sell your vehicle. As per transportation regulations, it is your duty to transfer the insurance to the new owner. You should ensure that the insurance is under the new owner's name.

Here's what you need to do –

• Gather Required Documents: Collect all the necessary paperwork for the insurance transfer.
• Apply For The Transfer: Once the ownership transfer is done, apply promptly to transfer the bike insurance within the specified timeframe.
• Choose Desired Coverage: Decide on the comprehensive insurance plan and any additional coverage you think is necessary.
• Provide Essential Documents: Submit all required documents, including form 29, 30, and the sale deed, to kickstart the insurance transfer process.
• Vehicle Inspection: The insurance company will send a surveyor to inspect the bike.
• Finalise The Transfer: After the assessment, the policy will be shifted to the new owner's name.

Following these steps ensures a smooth transfer of the bike insurance policy to the new owner, keeping everything legally sound and protected.
 

Important Things To Keep In Mind While Transferring Bike Insurance

When transferring bike insurance, there are a few key things you need to remember –

• Inform Your Insurer
  Let your insurance company know about the ownership change promptly. Give them the new owner's details and contact information.
   
• Insurance Transfer Or Cancellation
  Discuss with your insurer whether the new owner can take over the existing policy or if they need a new one. If they are getting their own insurance, sort out the cancellation or transfer of the current policy.
   
• Policy Endorsement
  Request an endorsement from your insurer to officially transfer the policy to the new owner. And, make sure the endorsement specifies the transfer's start date.
   
• Provide Necessary Documents
  Submit any required paperwork, like Form 29, 30, and the Sale deed, to facilitate the ownership transfer.
   
• Premium Payments
  Deal with any outstanding premium payments to avoid problems during the transfer. Clarify with your insurer how payments will work during the transition. You should note that some insurers might charge a small fee for transferring the policy.
   
• Inspection
  Be prepared for a vehicle inspection if your insurer requires one before approving the transfer.
   

What Is No Claims Bonus In Transfer Of Bike Insurance?

No Claims Bonus (NCB) is a reward you get from your insurance company for not making any claims. It is like getting a pat on the back from the insurer for being a safe driver. If you choose to switch your insurance provider or get a new bike, you can still keep your NCB. To keep enjoying this bonus, you will need a certificate from your old insurance company proving your NCB. Just make sure you renew your insurance within 90 days of it expiring, or you might lose the bonus.

One thing to note is that if you sell your bike, the NCB stays with you, not the bike. So, if you buy a new bike, you can transfer your NCB to it, but it will not automatically get transferred to the new owner of your old bike.
 

Can No Claim Bonus Be Transferred To The New Bike Owner?

Unfortunately, you cannot hand over your No Claim Bonus to someone else, even if you sell your bike and transfer the insurance policy. However, when you sell your bike and transfer both the registration certificate and insurance policy to the buyer, you get to keep your NCB. After completing the transfer, you will need to get a letter from your insurer confirming that you have retained your NCB. You can then use this letter to get discounts on the premium when you buy insurance for your new bike.
 

What Happens If The Transfer Of Bike Insurance Policy Is Incomplete?

If the transfer of your bike insurance policy is not done completely, only the basic third-party coverage is shifted automatically. This means you will not have coverage for things like own damage insurance (OD) or any add-ons. You should note that if you do not transfer the insurance policy to your name, the insurer will not cover any losses you face, whether it is for third-party or your own damage.

Furthermore, if an accident happens with the new owner and the insurance is not transferred properly, the court might hold the previous owner responsible for compensating the third party's losses. It is important to make sure all the paperwork is done correctly to avoid these issues.
 

Who Is Responsible For Transfer Of Bike Insurance Policy?

According to the Motor Vehicle Act’s Section 157, the seller is responsible for transferring the insurance policy to the buyer's name within 14 days of selling the vehicle. It is essential to get this done promptly to ensure everything is legally covered.
 

To Conclude!

Transferring bike insurance is a simple and convenient process. Just gather the necessary documents, like application forms and registration certificates, and contact your insurance company. They will assist you through the whole process step by step. Remember, it is crucial to transfer the insurance to the new owner's name within the specified time frame to ensure continuous coverage. And if you are ever unsure, do not hesitate to reach out to your insurer for help.

FAQs

1. Can bike insurance be transferred?

Yes, you can transfer bike insurance to a new owner. This process usually involves some paperwork: an application form, Form 28, Form 29, Form 30, a No Objection Certificate (NOC) from the previous owner, an inspection report from the insurer, and the vehicle's registration certificate in the new owner's name.

2. Is it important for the seller to transfer the bike insurance policy?

The previous owner's cooperation is crucial for this transfer. It makes the process smoother and ensures everything is legal and properly documented.

3. Can I transfer third-party bike insurance?

Yes, you can transfer third-party bike insurance from the old owner to the new owner of the vehicle. Initially, the cover is automatically transferred for the first 14 days after purchase. However, it is important to transfer the cover officially to ensure continuous coverage from the 15th day onwards.

4. Can I transfer my No Claim Bonus to the new owner of my bike?

No, you cannot transfer your No Claim Bonus (NCB) to the new owner of the bike. The NCB is tied to the insurance policy owner, not the vehicle itself. So, when you sell your bike, you keep the NCB with you; it does not pass on to the new owner.

5. Can I transfer bike Insurance online?

Yes, you can transfer bike insurance online. Lots of insurance companies have websites or online portals where you can start the transfer process.

6. Can I transfer my old bike insurance to a new bike?

No, you cannot transfer bike insurance to a new bike. You have two choices – either keep the same insurance company after transferring the policy to your name or switch to a new insurer.