5 Simple Steps to Transfer Bike Insurance
Published on September 23, 2019. EST READ TIME: 5 MIN
Two-wheeler these days have become a life line for travelling across the length and breadth of India. Be it a shopping day out or a hectic day with the kids, your two wheeler gives you the right speed and edge against the city traffic. Thanks to the affordable pricing and easy maintenance, two wheelers have gained immense popularity. However, due to changing trends in bikes and scooters riders always upgrade their vehicles and attempt to buy a newer version with better technological advances. That’s when the second hand bike market booms, one sells the older model for a cheaper price and buyer takes an advantage of the deal opt for a second bike for cheaper price rather than splurging on buying a new one. Although buying a second hand bike is totally ease and safe thing to do, this transfer the ownership and bike insurance instantly.
Why bike insurance transfer is required?
An important part of buying a pre-owned vehicle is transferring car insurance. Many fail to understand the importance of a timely second-hand two wheeler insurance transfer. Imagine a situation where you fail to complete the transfer of the two wheeler 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.
How to transfer bike insurance from one person to another?
Both the previous owner and the new owner have equal responsibilities in ensuring that the bike 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.
Bike insurance transfer process
A second-hand bike 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 bike insurance transfer
Used bike 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 bike insurance from the previous owner to your name to avoid any legal complexities and out-of-pocket expenses
By following the above steps, you can easily transfer bike insurance without any hassle.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales. This blog has been written by
S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry
A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.
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