All That You Need To Know About Third Party Two Wheeler Insurance Transfer

Posted on: Oct 19, 2022 | | Written by:

All That You Need To Know About Third Party Two Wheeler Insurance Transfer

Published on October 17, 2022. EST READ TIME: 3 minutes

How To Transfer Your Third Party Two-Wheeler To New Owner?

There is no match to the amount of convenience and ease of traversing through traffic that a two-wheeler offers. Thus, it is not surprising that India is home to one of the largest two-wheeler markets in the world. As per the National Family Health Survey, about 49.7% of Indian households own a two wheeler and the number is set to increase in the coming years. With the increase in the number of bikes, it only makes sense to opt for third party bike insurance

Since India is a huge market for two-wheelers, bike manufacturers constantly update their bikes and have new offerings on a regular basis. If you are a bike enthusiast, you are most likely to sell the old model and get the latest bike on the market. And according to industry estimates, India is expected to witness 26.6 million unit sales by the year 2025.

Since there is a lot of buying and selling that takes place in the two wheeler segment, it is essential not to forget a simple step. To transfer the third party party bike insurance two-wheeler insurance. When you sell your old bike or are buying a new bike, ensure that you transfer the policy to the new owner. This will make sure that there aren’t any legal issues.

How To Transfer Third Party Insurance

Should you decide to sell your bike and buy a new one instead, it is important not to miss out on transferring the policy to the new owner. Apart from this, you need to let the RTO or Regional Transport Office know about the sale of the bike. Following are the steps that you need to follow to transfer the third-party bike insurance from the old owner to the new owner.

1. You must inform your insurance provider about the transfer of ownership at the earliest. In fact, you must do so within 14 days of the transfer of the vehicle ownership. Failing to do so can make the ordeal a little bit more difficult.

2. You must submit some of the documents for the transfer of the insurance to the new owner. You must submit the Registration Certificate (RC), sale deed of the bike, insurance policy, documents that highlight the transfer of vehicle ownership, and history of paying premiums for the policy.

3. The buyer, as well as the seller, must submit the KYC documents such as Aadhaar card, PAN card, and driving license for the transfer of insurance.

4. Depending on the insurance provider that you have opted for, some might ask for a visual inspection of the bike before the transfer of ownership.

5. Once they have verified the bike and the documents, they will transfer the policy to the new owner of the bike.

It is essential to get the transfer of policy done within 14 days of buying the bike. Otherwise, the new owner of the bike will have to buy a new insurance policy.

What Are the Documents Needed for Policy Transfer?

To be able to complete a successful third party bike insurance transfer, you would need to furnish the following documents.

1. Form 28, 29 and 30 were duly filled in

2. Details of the insurance policy

3. Registration Certificate of the two wheeler

4. Documents pertaining to the transfer of ownership

5. Sale deed of the bike

6. No Objection Certificate from the previous owner of the bike

7. Address proof of the buyer as well as the seller

8. History of payment of premiums for the bike

9. Passport size photograph of the buyer as well as the seller

Benefits of Transferring the Insurance Policy

There is no doubt that the new owner of the bike will benefit from the transfer of third party bike insurance policy. However, the seller of the bike also has a few benefits when they ensure that the policy is transferred to the new owner. Here are some of the benefits of the transfer of policy.

1. Legal Clearance

Should the new owner of the bike meet with an accident that causes injuries or damages to a third party, the insurance policy would come in handy. Since it would reflect the name of the new bike owner. If that is not done, there is a possibility that the old owner of the bike will be held accountable for the damages caused to the third party.

2. No Claim Bonus

If you are the holder of comprehensive bike insurance and have not made any claims during the tenure of the policy, you are entitled to no claim bonus. The no-claim bonus is a discount that is applicable to the own damage component of the policy. And on renewal, you stand to save money on premiums due to the NCB.

When you transfer a policy for your old bike, you can claim the NCB certificate. You can then use this NCB certificate to the new policy of your new bike. This will ensure that you can continue with the NCB benefits even on the new bike without any hassles.

Advantages of Third Party Two-Wheeler Insurance

Whether you are buying a new bike or a pre-owned bike, it is essential to get third party bike insurance at least. Here are some of the advantages of the same.

1. The plan does not require a lot of documentation, and you can get the policy within a few minutes.

2. In the event of an accident that involves a third party individual or property, or vehicle, you do not have any financial obligation.

3. The Motor Vehicles Act makes it mandatory to buy third party bike insurance at the minimum to ride your bike legally.

4. All the insurance providers in the country allow you to buy the policy online within a few minutes.

Conclusion

There are quite a few benefits of buying third party bike insurance and transferring one from the old owner to the new. Considering these benefits, it is essential that you transfer the policy to the new bike at the earliest and not miss out on the coverage. However, if you wish to enhance the coverage of the policy, you can opt for a comprehensive policy for your bike. And if you are selling your old bike and planning to buy a new one, a comprehensive policy would offer much better coverage for the bike.

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

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