Insurance is like a spare tyre. You may not require it, but not having one is not an option.

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

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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

Claim Reviews

Page 1 of 50 1 2 3 4 5
  • Royal Sundaram Car Insurance
    "Average"
    0.5 3.0/5 "Satisfactory"
    I took my car insurance with Royal Sundaram. I never contacted the customer service. It is a default insurance from the showroom. The premium is high because I go for bumper to bumper offer, road side assistance, zeo dep. It is a first party insurance and no claim. The policy period is one year.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 19, 2019
  • SBI General Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    The showroom people has offered me a car insurance policy with SBI. I have made a premium amount of Rs. 22000. They have given me a coverage value of 100%. Total IDV value is 90% of the car value. I have no claim experience till now. The documentation process was done by showroom.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • National Insurance Car Insurance
    "Smart protection with National"
    0.5 4.0/5 "Great!"
    The major factor to chose National Insurance because of the premium is economic, I took the policy for 3 years the IDV value remains the same for the whole tenure. The customer support is good on time they activated the policy. I have Tata Tiago , its around four months vehicle. Its zero depreciation comprehensive plan. I taken the policy through showroom.
    Was this review helpful? 0
    , lucknow
    Reviewed on Jan 19, 2019
  • ICICI Lombard Car Insurance
    "Satisfied with the policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance is with ICICI Lombard. The customer services are good and I got the policy documents on time. The policy coverage is good and there are features of a road side assistance is there. The premium is economical too. Good overall.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 19, 2019
  • ICICI Lombard Car Insurance
    "Need to reduce the premium"
    0.5 3.0/5 "Satisfactory"
    I had a car insurance from ICICI LOMBARD which was offered by the showroom at the time of purchasing the vehicle. I felt the insurance premium is very high compared to others. I got a reminder call from the customer service at the time of renewal. It has zero dep for one year.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • Tata AIG Car Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I took my car insurance from TATA AIG through online channel. They have given lesser premium with zero dep and it includes road side assistance. The customer service is very good. The policy period is one year. I have no claim experience. It is a first party insurance.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • Tata AIG Car Insurance
    "Satisfied policy"
    0.5 5.0/5 "Blown Away!"
    TATA AIG is the best company to take the car insurance. Since long time i have taken this insurance. The customer care people used to call me to renew the policy and they used to policy renewal letter. I will do payment through online. Several times i have claimed the policy and i have received very good response.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Jan 18, 2019
  • Universal Sompo Car Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I had taken this insurance policy a long time back and it has been a good insurance policy. I had been paying the premium online and the payment method has been convenient. There has been a claim made once and the claiming method has been simple.
    Was this review helpful? 0
    , navi mumbai
    Reviewed on Jan 18, 2019
  • New India Car Insurance
    "Comprehensive benefit policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance was taken from New India. I don't speak with their customer care since i don't require it. I had a claim experience which is a easy process without any tension. As per their policy, the maximum claim amount settled. Since they are providing good services i have opted this policy. They have given me a road side assistance and bumper to bumper facility.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2019
  • Bajaj Allianz Car Insurance
    "Good to Go with Bajaj"
    0.5 4.0/5 "Great!"
    The conditions and the insured which they are providing is good, I have insured Ford Car with Bajaj Allianz, the premium amount is reasonable but they can reduce it. Its 1.5 year old year but still the insurer providing 24 hours service, cash less garages and they have tie up with many centers, the response is great.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 17, 2019
  • ICICI Lombard Car Insurance
    "Premium should be standard as per market"
    0.5 4.0/5 "Great!"
    I never used the policy if something happen I claim it, I didn't interact with the customer care but I get the reminder message for car renewal. I have insured my maruthi Suzuki riz with ICICI Lombard, The premium is higher but still they are good.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 14, 2019
  • HDFC Ergo Car Insurance
    "Very good"
    0.5 5.0/5 "Blown Away!"
    Even my car was insured with HDFC Ergo. It is a second-end car and have chosen the third party insurance. I have not done any claim so far. The premium is reasonable. It offers bumper to bumper facility and road side assistance. The policy period is 2 years.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 14, 2019
  • Tata AIG Car Insurance
    "Good Insurer"
    0.5 5.0/5 "Blown Away!"
    My financier suggested the Tata Aig general insurance, the premium is economical for the car policy. I have honda amaze car it got insured with them. The insurance company is providing 24 hours service, cash less garages, brake down service for the tenure of four years. On time I got the papers from the Tata Aig.
    Was this review helpful? 1
    , tirupur
    Reviewed on Jan 10, 2019
  • Tata AIG Car Insurance
    "Good Insurer"
    0.5 5.0/5 "Blown Away!"
    My financier suggested the Tata Aig general insurance, the premium is economical for the car policy. I have honda amaze car it got insured with them. The insurance company is providing 24 hours service, cash less garages, brake down service for the tenure of four years. On time I got the papers from the Tata Aig.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 10, 2019
  • National Insurance Car Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I had taken this Insurance policy for my Maruti Car and i had been paying the premium on an annual basis. The premium amount has not been too high and there has been cash less garages available with this insurance policy. Their customer support has also been helpful at times.
    Was this review helpful? 1
    , pune
    Reviewed on Jan 09, 2019
  • ICICI Lombard Car Insurance
    "Nice Policy"
    0.5 4.0/5 "Great!"
    My car was insured with ICICI Lombard. Last year i have purchased this insurance policy. My wife has referred me about this policy. I pay the premium amount of Rs. 13500. They have given me a convenient IDV value. I had no claim experience so far.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 09, 2019
  • New India Car Insurance
    "Need to improve the service"
    0.5 3.0/5 "Satisfactory"
    I'm not satisfied with the service provided by new India. I have bought the car insurance policy. They closed their branch on every weekends hence its difficult to renew the policy. I have been paying the premium amount of Rs. 14000 which is a competitive price. They have given the IDV value of Rs. 1.50 lakhs.
    Was this review helpful? 0
    , mangalore
    Reviewed on Jan 09, 2019
  • New India Car Insurance
    "Average Car Insurance"
    0.5 3.0/5 "Satisfactory"
    My car insured with the New India Insurance company. I have been renewing the policy with the same company for 3 years. I have paid the premium amount of Rs. 7000 and they have offered me a satisfied coverage value. The documentation process was fine
    Was this review helpful? 0
    , mangalore
    Reviewed on Jan 09, 2019
  • review Car Insurance
    "Its Good"
    0.5 3.5/5 "Pretty good"
    Last year I had car policy with Bharthi axa whenever I try to renew it ask my poliy no, whenever I mention the same, it shows the its incorrect. If I try to reach the customer care its not reachable. I done the claim, some minor damage back side of the car, they have processing fee 1500. Remaining all taken care by the insurer.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 08, 2019
  • ICICI Lombard Car Insurance
    "Great Policy"
    0.5 4.0/5 "Great!"
    ICICI Lombard has a good brand value hence i have selected the car insurance policy with this card and the dealer has also recommended about this policy. I pay the premium amount of Rs. 9000 and this is a 100% coverage with bumper to bumper facility. I'm not sure about the IDV value. Its easy to renew the policy.
    Was this review helpful? 2
    , new delhi
    Reviewed on Jan 08, 2019
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