Overview about How to Transfer Bike Insurance?
Two wheelers remain the smartest mode to commute when it comes to cutting through the dense traffic on Indian roads. However, they are also more vulnerable to road accidents compared to other modes of transport. This is why, getting your two-wheeler insured is the most important thing to do to ensure continued protection from losses resulting from accidents and other hazards.
While buying a two-wheeler insurance is mandatory by law, most people do not know what to do with the insurance policy while they sell off their vehicle or transfer the ownership to another person. A policyholder must be aware of the basic process of transferring their insurance policy and to retain associated benefits of the same.
When you sell your old scooter or bike to get a new one, the whole transfer process involves transferring the ownership of the vehicle and transfer of the insurance policy while informing the RTO on the sale of your vehicle.
Though two wheelers are the smartest mode of transport when it comes to avoiding dense traffic, given the rickety state of Indian roads, two wheelers are more vulnerable to road accidents than other vehicles. To ensure continued protection of your bike/scooter from accidents and other dangers, it is very important to not only buy a comprehensive insurance cover, but also renew it on time. A standard two wheeler insurance policy covers your two wheeler from a range of unforeseen dangers, threats and risks.
It is of utmost importance for policyholders to know the basic terms of their two wheeler insurance policy. This piece of information comes in handy renewing the policy, and also while transferring an insurance claim of the vehicle.
Constituents of A Two-Wheeler Insurance Policy
Most of the two wheeler insurance providers offer insurance policies that mainly constitute two important parts. The first part contains important details such as the name of the policyholder, phone number, and address. It also records the policy number, policy issue date, term of the policy, and location.
The second part comprises details such as vehicle registration number, model and make of the vehicle, year of manufacture, engine displacement capacity, coverage, IDV, engine and chassis number, and more.
Process To Transfer Your Two Wheeler Insurance
- While transferring your two wheeler insurance policy, the policy has to be transferred in the name of the transferee.
- The transferee needs to apply in writing within a specific time with documents relating to proof of vehicle delivery.
- The documents and details required for the process are the RC of the vehicle, the date when insurance was transferred and the details pertaining to previous insurance policy.
- The name of the previous policyholder and previous vehicle owner, policy number and date of insurance are also to be submitted to the insurer to help them make necessary changes in the records and issue a fresh certificate of insurance.
Two Wheeler Insurance Online
Third-party premium is taken into consideration for the purpose of premium calculation. The premium is calculated under the own damage and third-party premium section. Own damage section is for the insured two-wheeler and accessories. It will also show the discounts as applicable, for instance, No Claim Bonus, etc. Hence, to put it simply, third party section shows insurance premium amount for third party coverage.
Whenever you dispose of your old two-wheeler to make way for a better and newer mode of commute, there are certain things you should be careful about. Transferring the ownership of your old vehicle also involves correctly transferring all the associated documents to the new owner.
Benefits of Transferring Your Insurance Policy
A lot of people assume end of responsibility once they sell their two-wheelers. However, there could be legal complications and ambiguities if the paperwork of the sale is not given the right attention. The process may seem like a lot of work but carries a lot of importance to prevent yourself from any liabilities that may result from the actions of the new owner of the vehicle. While it is important to handover all vehicle related documents to the buyer, it is also important to transfer the insurance policy. The same may have following benefits:
- Guarding Against Future Liabilities – In case the new owner of the vehicle causes a damage to a third-person or their properties and a third-party claim has to be filed. Now if you haven’t transferred the ownership of your vehicle and the insurance policy, you would be named in your policy and will be held legally liable. To prevent yourself from such troubles, you must ensure that all the documents including the insurance policy are properly transferred to the buyer of your old vehicle.
- Withholding the No Claim Bonus – If you have not made any claims on your two-wheeler insurance policy during the preceding year, you are eligible to get a No Claim Bonus (NCB) from your insurance provider. NCB is an incentive offered to you by your insurance provider for riding safe and making no claims. When you transfer the ownership of your vehicle, do inform your insurer about the same and collect a No Claim Bonus Certificate which will help you avail discounts on your premium the next time you .
While selling your old two-wheeler to any person, be sure that you complete all the paperwork, inform the RTO through the right process and transfer all the relevant documents including your insurance policy to the buyer of your motorcycle or scooter.
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