How to claim for accidents occurred in the middle of vehicle ownership change

Unlike most other industry, the insurance arena is ethically and legally bound to act in good faith with its clientele. Due to their defending role in the lives of masses (the insured ones of course), insurance carriers have long since functioned as quasi-public trusts. But with the changing profit-hungry trend and poor guidelines, you can spot many a facets that have toppled that old unwritten social contract.

Insurance claim rejections have increased manifold in the recent past. One predominant reason seen here was rejection in between ownership transfer. Registering the insurance in the new owner's name and getting the one in your name annulled or transferred will certainly take some time. And you cannot shut away the car in the garage until all the paperwork is done. But with the new ruling, insurance firms are not allowed to turn down claims for road accidents that have occurred in the gap of car ownership change.

Until now, insurance carriers have repeatedly said that one’s new automobile insurance plan must be registered within two weeks of ownership change in the RC book. But if there is an additional delay, insurance providers fail to honor claims appealing the fortnight-clause. But accidents don’t come checking whether it’s the ownership transfer gap period or not. Hence this rule can serve as a huge blessing for customers.

Insurance ombudsman for certain states in India said that when the new owner of the car approaches the company to , they tend to hold back the application as they still haven’t received the revised RC. Furthermore, there could be a gap between the days of ownership transfer that is depicted in the RC book. As it is one of the technical deferment in the RTO office, the owner cannot be held accountable.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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