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Your 3 step guide to transferring car insurance

Published on May 4, 2020. EST READ TIME: 5 MIN

Upgrading to a new four-wheeler periodically is now a common phenomenon with easy availability of auto finance and a myriad range of cars to choose from. New makes and models keep mushrooming every now and then, tempting car users to ditch their old car in lieu of a shiny new set of wheels. But while you sell your old car and are busy choosing a color for your new one, don’t forget to transfer your car insurance along with other documentation.

Under Section 157 of the Motor Vehicle Act, it’s the responsibility of the seller to transfer the insurance policy to the buyer. If the policy is not transferred to the new buyer then the insurer is not liable to cover any losses under third party or own damage sections. Additionally, if there is an accident caused by the new owner, then the previous owner may receive a court notice to compensate for the loss incurred by the third party.

However many owners think transferring car insurance is a tedious process and outsource it to agents who charge a hefty commission for doing the same. However, with a little research and understanding car ownership can easily be transferred between the buyer and seller without involving anyone else.

We have outlined below 3 simple steps to follow for your convenience:

Step 1:

The first thing you should do after getting all the documentation done for the transfer of your old car to the buyer’s name is to have the below-mentioned list of documents ready, fill the forms, sign them and submit it to the insurance company. The application for change of vehicle insurance should be completed within the specified time failing which the policy will be deemed void by the insurance company.

Step 2:

Here is a list of documents that you need to submit to the insurance company as per the IRDAI guidelines, once you have paid the requisite transfer fee:

  • A copy of the registration certificate/form 29.
  • Old policy documents
  • No Objection Clause (NOC) from the previous policyholder
  • Duly filled application form
  • Inspection Report from the insurance company

Step 3:

Initiate the transfer of your motor insurance policy by contacting your insurance provider within the stipulated time period of 14 days. It is advisable to do this at the earliest, the reason being in case of an accident or damage during this interim period, the new owner shall not be able to make any claim as there will be a mismatch in the document credentials.  Also, don’t forget to collect your No Claim Bonus certificate from your insurance provider to retain the benefits which you can use while opting for a new policy for your new vehicle.

Once this procedure is completed and you seal the deal with the buyer of your car it is time to celebrate. So go ahead and explore the features of your new car and enjoy the much-awaited long drive with your loved ones in tow without worrying about insurance transfer. 

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle".


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