Given the dense Indian traffic and bumpy roads with narrow lanes; two-wheelers like a bike always prove to be the smartest mode of commutation. But it is also the riskiest mode of transport as the highest number of accidents involves it. This makes insurance a high-priority thing that you cannot afford to ignore.
Hence, even if you are buying a second-hand bike, it is essential to ensure that it has been properly insured with you as its owner. Old bikes are often already insured and thus you need to get the insurance transferred to your name. Here we walk through everything you need to know regarding the transfer of insurance of a second-hand bike.
Documents involving the sale of the bike
Buying a used bike is a little tricky process. You need to ensure that the ownership is getting transferred to your name as well as its insurance policy. It might be noted that the benefits of the policy like the No Claim Bonus will remain with the original owner if the process is followed as per the norm. Let’s look at all the documents you need to check before purchasing a used bike so that the ownership is transferred to your name without any hassle.
- RC book
- Forms 28,29 and 30
- Road tax certificate
- PUC certificate
- Two-wheeler insurance policy
- Sales receipt of two-wheeler
- Address proof and passport size photos.
Constituents of a bike insurance policy
One needs to not only transfer the ownership but also the insurance of the bike under the new owner’s name. For it, one must understand The Bike Insurance first. The policy is comprised of two important parts:
- The first part contains all the information about the owner and the policy like the name, contact number, address, policy number, issue date, expiry date, the term of the policy, etc.
- The second segment contains all information about the bike like its model and make, registration number, year of manufacture, IDV, engine and chassis number, engine displacement capacity, etc.
Need to transfer the bike insurance to the new owner
It might be stated that while the onus of the transfer of the bike insurance policy lies with the new owner; the old owner should also ensure it for the following reasons:
- In case of no claims made in the past year(s); the original owner can enjoy the perks of the NO Claim Bonus.
- He would get protected against future liabilities in case the new owner gets involved in a third-party accident. Without the transfer, the third-party insurance would continue under the new of the old owner who would then be held legally liable.
Process of transfer of the bike insurance policy
Purchase or sale of the bike comprises of two transfers. The first is the transfer of the ownership of the bike to the new owner. The second is the transfer of the insurance policy of the bike to the new owner. Here, we throw light on the step by step process of transfer of the insurance policy of the bike.
- Foremost the original owner needs to inform the insurance company about the sale of the bike.
- Post information, the original owner would need to submit a few important documents to the insurance company. This includes original policy paper, address proof and passport-sized photographs of the buyer and the new RC book with the name of the new buyer printed on it. Sometimes the new RC book may be unavailable at that time. In that case, one can submit the proof of transfer of ownership as a temporary document.
- A request letter for the transfer of policy under the new owner’s name is also submitted.
- Post the request, the insurance company initiates the process and might charge a transfer fee from any of the parties as per the agreement reached between the duo. While not mandatory, they may also inspect the bike to verify its condition.
- The original owner can apply and follow the procedure to procure the no claim bonus certificate under his own name so that he can reap its benefits while purchasing the insurance for his new bike/car.
- Once everything has been verified and authenticated, the insurance company will issue the new insurance policy for the bike under the name of the new owner.
It must be noted that the entire process of transfer of the insurance of the bike to the new owner must be done within 14 days of the sale of the bike. Additionally, you must also know that if you have third-party insurance, it starts operating automatically under the new owner name from the day of the sale to 14 days. If the policy has not been transferred to the new owner’s name after 14 days, both third-party and comprehensive policy ceases to exist.
As evident, the transfer of the insurance policy is a critical and must-do move. The transfer process is pretty simple to follow and should be done without fail.