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With more people choosing to purchase second-hand cards or pre-owned cars over new cars on the rise, most people are in a fix when it comes to transferring the registration from the one person to another. A lot of people choose to keep the registration in the name of the first owner, fearing depreciation of the value of their car, but with regard to insurance, this move will pose a problem. Second-hand car buyers will first need to first transfer the registration of the vehicle to their own name and then carry out the process of transferring the insurance of the car.
For those who are first-timers to the whole process, transferring the insurance as well as the registration is imperative as when making an insurance claim, the owner of the car as well as the name mentioned in the insurance document has to match to be eligible to avail coverage of the damage caused following an accident. This criteria is a must as per the guidelines of the Insurance Regulatory Department of India.
To carry out the process of transfer of registration and insurance, second-hand car buyers will have to follow the steps mentioned below. Customers will have to pay the Rs.50 transfer of registration fee and submit the following documents at the RTO.
Despite the fact that the original owner of the car wishes to sell his/her car, the owner can retain the no-claim bonus. By doing so, the owner can transfer his/her no-claim bonus advantage to their next insurance policy. The owner can then avail a discount in premium for the next insurance policy and be at the receiving end of several perks - related to the no-claim bonus. To carry out the process of the no-claim bonus retention, the original owner of the car will have to follow the steps mentioned below and submit the necessary documents.
As already mentioned, despite the fact that the transfer of ownership might depreciate the value of the car - that is if the new owner wishes to sell the car sometime in the future - having the transfer of registration and insurance is imperative if the new owner has to make an insurance claim. Insurance companies will only consider the claim if the name on the documents (registration certificate and insurance certificate) match. If not, the claim will be rejected immediately. That said, to avoid any confusion, making the transfer of both the registration of the vehicle as well as the insurance is absolutely necessary.