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Buying a pre-owned bike? Ownership and insurance transfer are a must. Here’s how.

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Whether you are a college student or an office goer, just turned 18 or are heading towards your golden years, two-wheelers are a popular mode of transport for millions in India. Bike manufacturers are aware of this, and hence, launch new two-wheelers with better features every year. So, those who wish to buy a new bike often sell their old one, and those who don’t have enough savings to buy a new bike, usually buy a pre-owned bike. There could be many other reasons why you might be selling a bike or buying a used one, but the pre-owned market is booming like never before. So, just like you get two wheeler insurance when you buy a new bike, it’s pertinent to get the existing insurance policy transferred to your name when buying a used bike. Let’s discuss this in detail.

1. What is bike ownership transfer?

Bike ownership transfer refers to the transfer of rights and other liabilities of the vehicle to its new owner. It is a mandatory requirement, and after submission of all the required documents, you will be issued a Transfer Vehicle Registration Certificate (TVRC) by the concerned RTO. Riding a bike without transfer can invite heavy penalty.

2. When is ownership transfer required?

Transfer of ownership is required under 3 circumstances:

• Normal sale: If you purchase a pre-owned bike, you need to get the vehicle’s ownership and registration transferred to your name, to get all the legal rights and possession of the bike.

• Owner’s demise: In the event of the registered owner’s death, the ownership is transferred to the legal heir. Before the transfer, the legal heir can use the vehicle for 3 months, but should intimate the RTO within 30 days of the demise. Within the three months, the person needs to submit Form 31 for transfer of ownership.

• Public auction: The new owner has to submit Form 32 to the RTO within 30 days of the purchase to take possession of the bike.

3. Step-by-step process for bike ownership transfer

• The seller needs to submit an application of transfer to the RTO where the two-wheeler is registered initially. In case of the registered owner’s death, the legal heir has to initiate the process of ownership transfer.

• The seller must hand over all vehicle-related documents to the buyer for a smooth transfer.

• Fill in all relevant forms and submit them before the deadline. The forms may vary for transfers within the state and outside the state.

• Once the documents are submitted and fees paid, the RTO will verify them. If everything is in order, the process will be complete and the buyer will get the new RC.

4. Documents required for ownership transfer:

 

• Duly filled Form 29 (in case of normal sale), Form 31 (in case of owner’s death) and Form 32 (if the vehicle is purchased in auction)

• Registration certificate (RC) book

• Pollution Under Control (PUC) Certificate

• Certificate of insurance

• Sales Receipt

• Transfer deed

• Road tax certificate

• Valid address proof, identity proof, and 2 passport-sized photographs (to be provided by the buyer)

• Please note that additional documents will be required in case of the registered owner’s death.

5. How to transfer bike insurance?

When you plan to buy a pre-owned bike, along with ownership transfer, two wheeler insurance transfer is also necessary. This is because, in case of any accident, you will not get the benefits of the policy since the insurance is still in the previous owner’s name. You may have to pay from your own pocket to get the damages repaired.

The process to transfer bike insurance is very simple. Just follow the below steps:

• Apply for insurance transfer of the two-wheeler within 14 days of the purchase.

• Submit all the documents such as transferred RC, form 29/30/Sale deed, No Objection Certificate (NOC) of the seller.

• An inspection will be carried out by the insurance company.

• You will be required to pay a transfer fee.

• After everything is verified by the insurance company, the policy will be transferred to your name.

Conclusion

When you buy a pre-owned bike, two things are a must - transfer of ownership and transfer of insurance – to avoid any legal hassles. As per Motor Vehicles’ Act, a third party cover is mandatory for two-wheelers. And you can check out different options for bike insurance online before picking the one that suits your needs.

Disclaimer: The above information is for illustrative purposes 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 the latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

Few Other Articles:

• 5 simple steps to transfer bike insurance

• 4 things to consider before buying a second hand motorcycle

• Important considerations while buying second hand-two wheeler