Transfer the Ownership and Insurance of Your Bike Online with these Simple Steps

Posted on: Feb 9, 2022 | | Written by:

Transfer the Ownership and Insurance of Your Bike Online with these Simple Steps

Published on February 8, 2022. EST READ TIME: 3 minutes

Two-wheeler insurance ascertains three most crucial aspects for your bike; its long life, protection from possible legal ramifications, and protection of your financial security.

The decision to purchase a vehicle is a crucial one, especially if the vehicle is used or pre-owned, and the entire process necessitates considerable effort.

Plus when buying a two-wheeler ascertaining that the bike or scooter is in good shape, all the necessary paperwork is in order and a fair price for the vehicle has been decided. In addition to this, the old vehicles have an advantage over the brand new ones as the former are cost-effective.

Transferring Bike Insurance- Why and How it’s Done?

When a vehicle is transferred to a new owner, the insurance policy must be transferred as well. Because bike insurance is linked to a specific vehicle rather than its owner. This ensures that the vehicle is ready to be safely disposed of to its new owner, free of any liabilities associated with its previous ownership. So here are some motivations why you should transfer your bike or car insurance:

Defense Against Potential Future Liabilities:

In the event that you end up causing damage to a third party or their property and a third-party claim must be filed, the insurance must be in your name. If it is not transferred, the third-party claim will be rejected, and you will be held legally responsible.

Earning the No-Claim Bonus or Benefit:

If you do not file a claim during the stipulated policy period, the insurance provider will reward you with an NCB or No-Claim Bonus, which is primarily a discount on the premium for the following year. So when selling a vehicle make sure to inform your insurance company about the earned NCB and redeem it on the purchase of a new policy.

Under Section 157 of the Motor Vehicle Act of the transportation department, it is the seller's responsibility to ensure the transfer of the bike insurance to the buyer within the span of 14 days.

If you do not transfer the bike or car insurance policy to your name, the insurance company is not obligated to cover any losses you incur, including both third-party and own damage sections.

Furthermore, the court may issue a notice to the previous owner to compensate for the loss suffered by a third party as a result of an accident caused by the new owner.

Besides that, please keep in mind that only the third-party section of the policy is automatically transferred. This means you don't have access to coverages like Own Damage Insurance (OD) or any Add-ons (if any).

Moreover, insurance also covers you financially if your bike meets with an accident. Reduces liability of third-party damage and in the event of your death, the insurance company compensates your family. And pays for the hospitalization in case of an unfortunate mishap.

Steps to Transfer the Second-Hand Insurance:

So these are the steps required for the transfer of used bike insurance:

● Forms 28, 29, and 30 should be obtained from the respective RTO's website or office.

● Fill out the form and submit it to the RTO along with any supporting documentation (if any).

● Take the Clearance Certificate from the RTO for the completed forms and proof of sale.

● Submit all necessary documents to the insurance provider.

● Pay the applicable fee (if any).

● Receive the policy with your name on it via email or courier.

In addition to this, if you plan to purchase a new bike after selling your old one, you can easily transfer the NCB from the previous vehicle ownership to the new one to avail yourself of the best Online Bike Insurance by applying with HDFC ERGO.

Conclusion

Insurance cover of your vehicle is a crucial aspect for the longevity of your vehicle, the legal implications, and your financial security. Make sure to learn about all the detailed clauses of an insurance company before reaching a decision. Carefully read the documentation and keep track of your payments

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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

4 Things to Consider Before Buying a Second-Hand Motorcycle

5 Simple Steps to Transfer Bike Insurance