The most convenient and smartest mode of commute in the city is a two-wheeler. However, two-wheelers are also very vulnerable to road accidents as compared to any other form of transport.
It is mandatory to have third-party bike insurance in India. One of the most important things to do when you sell a bike is to transfer the insurance.
Why transfer is required?
Many people are not aware of the fact that it is mandatory by law to own third party insurance for bike. The ones who own the insurance cover do not know what to do with it when they sell the bike.
As a policyholder, you need to be aware of the process of transferring the policy in order to retain the benefits associated with it. You can transfer the ownership of the vehicle and the insurance policy by informing the Regional Transport Office (RTO) about the sale of the vehicle.
How does the process work?
You can transfer the policy in five simple steps.
- The policy will have to be transferred in the name of the transferee.
- The transferee will be required to apply in writing within a specific period with the documents that prove the delivery of the bike.
- The details and documents needed for the process include the Registration Certificate (RC) of the vehicle, the date of transfer of insurance and additional details about the previous policy.
- In addition, the name of the previous bike owner, policyholder and policy number will have to be submitted.
- You will then have to provide the date of insurance to help them make requisite changes in their records and to issue a new certificate of insurance.
What do you need?
When transferring the two wheeler insurance, you will need to provide complete insurance policy details like your name, address and contact number. Further, you will have to provide the policy number, its date of issue, location and term of the policy.
Now you need details about the vehicle like the registration number, make and model of the vehicle, manufacturing year, engine displacement capacity, Insured Declared Value (IDV), coverage, chassis number and engine number.
Benefits of transferring the policy
Many people are of the opinion that they are free of responsibility when they sell their bike but this is not the case. There are numerous benefits of transferring the policy at the time of sale.
- Security Against Future Liabilities
If the new owner causes damage to the vehicle, property or a third-party, you will be named in the policy and you will be considered responsible for the damage. In order to spare yourself from the trouble, it is important that the policy-related documents are transferred to the buyer.
- The eligibility to avail of No Claim Bonus (NCB)
As a policyholder, if you have not made any claims on the policy in the last year, you will be eligible for an NCB from the general insurance company. You will have to inform the insurer about the same and collect the NCB Certificate.
This certificate will help you get discounts on the premium amount during the purchase of a new policy or bike insurance renewal online.
It is important to understand the importance of completing all the paperwork at the time of selling your bike.