Bankbazaar

All you need to know about the transfer of used car insurance in India

Every automobile owner knows that all vehicles plying on Indian roads need to be insured as per government regulations. It has been mandated for all prospective buyers of cars to purchase an auto insurance policy so that damages caused to the vehicle on the roads are compensated for.

Most car owners are aware of the basic car insurance policies offered by insurance providers in the country. However, not many know about the process of transferring car insurance in the event of sale or purchase of a used car. It should be noted that used car insurance can be effortlessly transferred to a new car or a new owner.

Transfer of used car insurance

Process of used car insurance transfer

In accordance to the guidelines set by the Insurance Regulatory and Development Authority of India (IRDA), the insurance of a used car should be moved to the new owner of the vehicle with 14 days from the date on which the registration was transferred. If this is not followed, no claim will be payable to the vehicle in case it has suffered from own-damage.

The documents required for the transfer of insurance are,

  • Old insurance policy
  • Copy of Form 29 or the new certificate of registration
  • No Objection Certificate (NOC) from the old owner of the vehicle
  • A new proposal form
  • Report of the inspection carried out by the insurance company
  • Fee for transfer, to be paid to the insurance provider. This will be between Rs. 50 and Rs. 100.
  • NCB recovery or the difference amount

Is it possible to change the insurance provider?

At the time of registration transfer, you can choose to either change the insurer or continue with the current one. With the competition in the market, various insurance providers are offering lucrative insurance policies and flexibility in coverages that can be availed of. So, this is a good time to weigh out your requirements and choose the most optimum plan for your car.

There are multiple neutral third party financial websites that offer user-friendly interfaces to compare and buy the most appropriate policy for your needs. They also provide excellent post-sale service and have dedicated teams that assist in resolving claim-related issues.

Points to note before finalising on an insurance plan

  1. The IDV of your car - In case your car is involved in a theft or accident where it has suffered damages, the amount that you will be compensated with depends on the Insured Declared Value (IDV) of the vehicle. So, the higher the IDV of your car, the bigger the amount you receive as payout for your claim. However, a big IDV also contributes to higher premiums.
  2. Discounts from insurance providers - Browse through the discounts offered by various insurers to get the most befitting policy.
  3. No Claim Bonus - When you purchase a used car, you will be starting with 0% NCB. However, you will be able to accumulate NCB as each year passes without claims from your end.
  4. AAI Membership - If you are a member of the Automobile Association of India (AAI), you will be liable for further discounts on your policy.
  5. Discounts based on age and profession - Some insurance providers offer age-based discounts on the premium corresponding to own-damage. Discounts are also offered based on professions, with Government employees attracting greater benefits.
  6. Installation of Anti-Theft devices - If your vehicle has an anti-theft device installed and the equipment is approved by the Automotive Research Association of India (ARAI), then you will be eligible for attractive discounts on the premium.
  7. Voluntary Deductible Discount - If you opt to pay a part of the claim amount, then you will receive an extra discount during the purchase of the policy.
  8. Claim Settlement Ratio and Post - Sales Service of the insurance provider - Before you make a payment for the insurance policy, you should ideally review the insurer’s market presence and their ratio of claim settlement. It is also advisable to read reviews by other customers on their after-sales service. This information gives you an insight into the reliability of the insurance company and helps you in making a prudent decision.

Impact to No Claim Bonus of used car

Many buyers of used cars are under the impression that when they get the car insurance transferred, they will also benefit from the accumulated No Claim Bonus. But this is not true. NCB is the reward given to the owner of a car for claim-free years; this amount is granted to him, not the car. So, he can retain the NCB and transfer it to the insurance of the vehicle that he would buy in the future. In effect, if a vehicle has an NCB discount on its insurance, it will not be retained in the new insurance policy after the vehicle has been registered to the new driver. This causes an increase in the premium of the new insurance policy, and the new owner of the vehicle will have to bear the differential amount.

If you are the seller of a used car, you should furnish the following documents in case you want to retain your NCB.

  • A letter requesting the cancellation of the insurance policy
  • A copy of the original insurance policy and the insurance certificate, i.e., Form 51
  • Notice of transfer of ownership of the vehicle, i.e., Form 29
  • Application for the intimation and transfer of ownership of the vehicle, i.e., Form 30
  • Copy of the registration certificate booklet bearing the name of the new owner.

The transfer of a used car insurance is made comfortable through online forms at neutral financial websites. They also facilitate the car inspection process to ease your burden in the transfer of insurance. So it is advisable to make use of the online facility as much as possible.

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

 4.5 / 5.0   by 2625 users
Used this product? Write a review >>

Policy Coverage

Customer Service

Claim Experience

Responsiveness

Cashless Garages

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

Claim Reviews

Page 1 of 50 1 2 3 4 5
  • United India Car Insurance
    "For new car, don't go for it"
    0.5 4.0/5 "Great!"
    The amount they are charging is less thats the reason i opted the car insurance policy from united India. I pay the premium amount of Rs. 2500. This is a third party insurance policy. Through consultancy, i used to renew my policy. I have not applied for any claim so far.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jul 16, 2019
  • HDFC Ergo
    HDFC Ergo Car Insurance
    "Whichever policy, Go for Zero dept"
    0.5 4.0/5 "Great!"
    My car insurance policy was with HDFC ergo because it was recommended by my dealer. I had claim experience and it was cashless and good. I did not pay anything from my pocket within 3 days, they have processed the claim and handed over my vehicle. It was a zero depreciation policy.
    Was this review helpful? 0
    , greater noida
    Reviewed on Jul 15, 2019
  • ICICI Lombard Car Insurance
    "Good policy "
    0.5 3.0/5 "Satisfactory"
    Every time, i used to visit their showroom to renew my car insurance policy. I'm receiving the no claim bonus. This is a bumper to bumper covered policy. I pay the premium amount of Rs. 10000 and I'm not sure about the IDV value. They are providing the hard copy of the documents immediately. I do not have any claim experience.
    Was this review helpful? 0
    , greater noida
    Reviewed on Jul 15, 2019
  • HDFC Ergo Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    HDFC ERGO GENERAL INSURANCE is the company where I have taken the car insurance policy for life time policy, the premium amount is nominal I use to yearly basis. I use to do payment through an online. Their service is good. They used to process the claim as soon as possible and they will take care of the claim.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 13, 2019
  • Royal Sundaram Car Insurance
    "Should be transparent"
    0.5 1.0/5 "Really Bad"
    I met with an accident, I had to get it claim because I have Royal Sundaram car policy it was bumper to bumper at the time of enrollment they said its fully covered. But when I went for the claim, the insurer said car engine was not covered. Then I fought with Royal sundaram Insurance company. They quoted 1.40 lakh claim value and they made me to pay Rs. 70,000 from my end. However the additional cost of engine protection is just around Rs. 400 but I paid the premium of Rs. 20,000. I am very disappointed with them because they are not transparent. So I suggest to all, before going policy make sure whether its fully covered.
    Was this review helpful? 0
    , chennai
    Reviewed on Jul 13, 2019
  • Royal Sundaram Car Insurance
    "Policy not up to the mark"
    0.5 3.5/5 "Pretty good"
    The policy was overall good but end of the day i was not satisfied with the policy. When i purchase the policy, they said its a zero depreciation policy and its nil dept. But when i applied the claim, they have given me a claim only for 50%. In that, my car steering was not covered, Some engine parts and bumper was not covered.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 13, 2019
  • New India Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I have bee using the car insurance policy with NEW INDIA ASSURANCE where the customer support is prompt by giving the information regrading the policy expiry date. I had no claim also the IDV value is good provided with the insurance policy.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jul 10, 2019
  • ICICI Lombard Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I have purchased the two wheeler insurance policy with the ICICI LOMBARD GENERAL INSURANCE where i had no claim experience with the policy. The premium paid was nominal also the IDV value is good with the policy. The service is good with the policy.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jul 10, 2019
  • National Insurance Car Insurance
    "Good Claim Experience"
    0.5 4.0/5 "Great!"
    I believe the premium is lesser for National Insurance car policy and they have good claim ratio when compared to private sector but the service needs to be improved. I done a claim there a small damage within a week time they came and took the details and within 15 days I got the reimbursement. I paid last premium of Rs. 10,461 for my Maruthi Baleno car.
    Was this review helpful? 0
    , pune
    Reviewed on Jul 09, 2019
  • Oriental Insurance Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I am using the policy since from last 2 years with ORIENTAL INSURANCE where they have given coverage is for bumper to bumper. The premium paid was nominal and the IDV value was good also there was a road side assistance. No claim bonus is there with the policy.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jul 08, 2019
  • Bajaj Allianz Car Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    When i purchased my new car, i have bought the car insurance from Bajaj Allianz. I have made th premium amount of Rs. 33000 for the coverage amount of Rs. 9 lakhs. I do not applied for any claim till now. For the premium amount has taken along with the loan amount.
    Was this review helpful? 0
    , kochi
    Reviewed on Jul 06, 2019
  • New India Car Insurance
    "Need to improve the service"
    0.5 4.0/5 "Great!"
    Taken my car insurance from New India. My dealer has given the policy with them and I'm continuing with the same company. I pay the premium amount of Rs. 16000 for the coverage amount of Rs. 7.50 lakhs. I haven't got my no claim bonus. When i informed about the same, they were not ready to provide proper response.
    Was this review helpful? 1
    , kochi
    Reviewed on Jul 06, 2019
  • National Insurance Car Insurance
    "Excellent car insurance policy"
    0.5 4.5/5 "Excellent!"
    I went to the dealer and he had a tie up with the National Insurance company hence i have chosen them. I paid the premium amount of Rs. 22000. They have provided me a coverage amount of Rs. 4 lakhs. They have provided me a hard copy of the documents. Its a zero depreciation policy. I get a facilities of no claim bonus, roadside assistance.
    Was this review helpful? 0
    , rewari
    Reviewed on Jul 05, 2019
  • HDFC Ergo Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    HDFC ERGO GENERAL INSURANCE is the company where i am using the car insurance policy since from last 6 months also the premium paid was nominal added on that the IDV value is nominal with the policy. The policy coverage is for bumper to bumper with the policy.
    Was this review helpful? 0
    , jamnagar
    Reviewed on Jul 05, 2019
  • review Car Insurance
    "EXCELLENT"
    0.5 5.0/5 "Blown Away!"
    I have been using the car insurance policy with the BHARTI AXA GENERAL INSURANCE where i have no claim experience also the premium paid was nominal also the IDV value was good with the policy. The policy coverage is for full also it is a good policy.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jul 05, 2019
  • New India Car Insurance
    "Need to experience the policy"
    0.5 5.0/5 "Blown Away!"
    New India insurance has a tie up with Maruti since i have a Martui Swift i have chosen them. I pay the premium amount of Rs. 11000 approximately. I get a coverage value of Rs. 5.86 lakhs. I do not have any claim experience so far from the purchasing date.
    Was this review helpful? 1
    , jaipur
    Reviewed on Jul 03, 2019
  • ICICI Lombard Car Insurance
    "Genuine service provider"
    0.5 4.0/5 "Great!"
    I done one claim with ICICI Lombard during flood time, the service is good and genuine. There was no charges applicable because I have zero depreciation plan. They have tie up with many work shop and premium is higher but the service is prompt.
    Was this review helpful? 0
    , chennai
    Reviewed on Jul 02, 2019
  • New India Car Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I have been using with the NEW INDIA ASSURANCE where i had claim once with the policy and i had a claim experience and i got reimbursement of 50%. The policy coverage is for bumper to bumper. I have paid the premium was 7K and the IDV value is 80% provided.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jul 01, 2019
  • ICICI Lombard Car Insurance
    "Should be faster"
    0.5 5.0/5 "Blown Away!"
    Last year I paid the premium of Rs. 8000 for taking comprehensive plan. I have 2013 model santro car it have good insured value. ICICI Lombard got tied up with many garages and work shops. When my wind shield got damaged they took 45 days for reimbursing the money.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jun 30, 2019
  • Oriental Insurance Car Insurance
    "Good car insurance"
    0.5 5.0/5 "Blown Away!"
    1 year back, i have taken my car insurance policy. Since the dealer has suggested me a policy with the oriental i have chosen them. I am paying the premium amount of Rs. 9000 for the coverage value of Rs. 1.30 lakhs and iâ??m satisfied with it. This is covered for 100% hence zero depreciation policy. It has a facilities of road side assistance, no claim bonus etc.,
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jun 30, 2019
Common Loader Icon
Page 1 of 50 1 2 3 4 5
reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.