Don't Procrastinate for Second-Hand Car Insurance Transfer
The automobile industry in India is growing at a very rapid rate. The used car market, in particular, has witnessed a spurt in demand. Many are now realizing that a pre-owned car purchase is a good option with regards to price and value for money. Besides, car dealers now offer reliable and good-condition cars, making pre-owned vehicles a popular option for potential car buyers.
Importance of car insurance transfer
An integral part of buying a pre-owned vehicle is transferring car insurance. Many fail to realize the importance of a timely second-hand car insurance transfer. Imagine a situation where you fail to complete the transfer of the auto insurance of your recently-purchased used car. In case you meet with an untoward incident, such as an accident, the insurance provider will not provide the benefits of the policy since the insurance policy is yet in the previous owner’s name. You may have to bear out-of-pocket expenses for repairing the damaged vehicle.
Role of previous and new owner
Both the previous owner and the new owner have equal responsibilities in ensuring that the car insurance transfer takes place in the new owner’s name. According to Section 157 of the Motor Vehicle Act, it is the duty of the new owner to transfer the policy by submitting an application to the insurance provider within 14 days from the date of transfer. In case this is not done, the new owner will have to bear financial losses in case of any damage to the car. It is, therefore, important that both the previous owner and the new owner do their due diligence in transferring the insurance policy.
Car insurance transfer process
A second-hand car insurance transfer procedure is quite a simple affair. You may furnish an application for transfer to the insurance company along with other documents such as transferred registration certificate, form 29/30/Sale deed, No Objection Clause (NOC) of the seller , inspection report which is generally carried out by the insurance provider, and old policy document. You will also be required to pay a certain transfer fee. Upon successful processing, the insurance provider will then pass the endorsement of transfer.
Benefits of car insurance transfer
Used car insurance transfer has manifold benefits. You may enjoy the benefits of the policy in case of an unfortunate event. Besides, the previous owner may also transfer the No Claim Bonus to a new vehicle purchased by him. However, this new vehicle has to be from the same class i.e NCB can be transferred from a Private Car to a Private Car and to, to a Two Wheeler. It is necessary to complete all legal formalities while purchasing a pre-owned vehicle. It is only right to ensure that you have diligently transferred the second-hand car insurance from the previous owner to your name to avoid any legal complexities and out-of-pocket expenses.