A Simple Guide To Managing A Car Insurance Transfer

Here are all the steps you need to follow to transfer your car insurance.

• Know what car insurance is!
• The transfer must be completed within 14 days as per the law.
• Required documents include RTO forms, NOC, old policy documents, and application forms.
• The process involves document submission, vehicle evaluation, and policy transfer.

What is car insurance?

Car insurance is a contract between the owner and the insurance company in which the owner pays the premiums, and the insurance company takes care of any loss or damage to the vehicle. In some cases, like when buying a second-hand car, a car insurance transfer is required.

It doesn’t matter if you do the car insurance transfer online or offline; there’s a specific period within which it needs to be done.

Also Read: Common Car Insurance Myths And Misconception Busted

Why is a car insurance transfer needed?

Car insurance transfer or vehicle insurance transfer formalises another party's admission and one party's withdrawal from an insurance policy contract. Within 14 days of the purchase date, both parties must transfer their auto insurance policies by the Motor Vehicles Act Section 157.

The Insurance Regulatory and Development Authority of India (IRDAI) recommends that a vehicle's insurance policy use the same name and address as the vehicle's registration document.

So, even if you are the vehicle's legal owner, you can only claim on an existing car insurance policy if the car insurance name transfer has been done.

Documents required to transfer insurance

Specific forms and RTO documents are required to transfer insurance, which must be filled out before initiating the process. You can keep a checklist of documents provided below:

• The brand-new copy of RTO forms 28, 29 and 30 for registration.
• Clause of No Objection (NOC) from the prior policyholder.
• Documents from an old car policy.
• A brand-new application form.
• The insurance company's inspection report
• A no-claims bonus difference amount.

Also Read: Be Aware Of These Points Before Finalising The Insurance Coverage

How to transfer car insurance?

If you’re wondering how to transfer car insurance, it’s simple. The steps and the process might sound exhausting, but they can be carried out easily. And before starting the entire process, you must be aware of it. So here are all the steps:

• Make sure you have all the necessary paperwork to begin the insurance transfer process.
• Make an application for the transfer of the vehicle's insurance as soon as the ownership transfer is complete and within the allotted time.
• For comprehensive coverage, select the complete vehicle insurance plan with optional add-on covers.
• To transfer the vehicle or car insurance, submit all the documents, including forms 28, 29, and 30, and the sale deed. The buyer and seller must sign the RTO receipt for Forms 28, 29, and 30 as evidence of the transaction.
• To move forward with transferring the insurance policy, your vehicle will be evaluated.
• The insurance policy will be transferred to your name once the assessment is finished.

If you’re wondering, you can follow the list of documents and the steps for the car insurance transfer provided by this guide!

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Sources:

• bankbazaar.com
• bajajallianz.com