How to Transfer Two Wheeler Insurance

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A transfer of ownership and insurance of any two-wheeler is necessary while purchasing a second hand bike to avoid the future complications regarding registrations, document transfer, etc. It is mandatory under Indian law of Motor Vehicle Act, 1988.

If you are already buying a used bike or second-hand bike, Make sure you are paying the right price after considering the below:

• The history of the bike is very important, do a thorough check on the background of the bike and owner if not then probably landing yourself in trouble.
• Ask the seller for all the maintenance records and service book because only a well serviced bike is worth buying.
• You should also pay equal importance to the vehicle insurance document and its claim percentage to know if the bike or the owner were part any legal issues.
• Check the speedometer to know the distance travelled, the insurance policy to know if there were any claims from the seller or on the seller. This will help you in finding if there were any legal proceedings on the vehicle.
• Check for scratches, dents, frame of the vehicle, oil level, head lights, indicators and all the other extra fittings or accessories.
• Scratches or minor damages are quite common with used vehicles; but if you check properly this might help you in negotiating the cost of the vehicle.
• Ask for a test drive to check different controls on the bike, driving in mud roads or bad roads, slopes, etc. Importantly check for the emission levels.

Why is it important to transfer bike Insurance from one person to another?

If you are selling your bike to another person, along with transfer of your ownership, it is important to transfer the insurance of the bike as well as. You will be eligible for benefits like retention of No-Claim Bonus, if you have not claimed your insurance while the policy was active. You can avoid future legal liability with the help of the insurance, if the bike is in a mishap.

How to Transfer Two Wheeler Insurance?

This is the most important step to follow to free yourself from all the legal liabilities that the new owner may cause. Ensure you have done all the procedures correctly while transferring the ownership of the bike correctly because that lays one foundation for bike insurance transfer. Here is what you need to do to transfer bike insurance for the new buyer:

• The owner should apply for the insurance transfer with the insurance company within 15 days from the date of bike ownership transfer.
• Carry the necessary documents like Registration Certificate, the date of ownership transfer, details of original insurance policy, vehicle details, dealer’s name and the premiums paid.
• Along with the personal details of the owner, the buyer should also submit his/her personal ID, like PAN card or AADHAR, Driver’s License, etc. for the record of the insurance transfer. Once the insurer verifies all the document, the name in the policy will be changed to the buyer’s name with necessary changes.
• You can also substitute another vehicle of the same type, under the existing policy for the remaining period with adjustment in premium which is calculated on the basis of pro-rata formula.
• The owner of the bike should submit third party insurance at the time of transfer because it is important for premium amount calculation.
• The owner of the bike can enjoy benefits of no-claim bonus in the form of discounts on premium amount from the current bike on submission of the NCB certificate while he purchases an insurance for his/her new vehicle.

Steps to follow for transfer of ownership of the bike:

• The buyer should submit an application for transfer of bike ownership at the same RTO where the bike was initially registered.
• Submit Form 29 and Form 30 at the Directorate of Transport office with other original documents like RC, insurance, emission test, tax paid receipts, address proof of the seller, three passport sized photographs, etc.
• After all the verifications from the registering authority, all the documents the ownership along with the insurance of the bike will transferred to a new name within 14 days.
• If the buyer resides in the same state as the seller, then the buyer has to report all the transfer details to the registering authority within 2 weeks. If both the parties are residing in different states, then the buyer will have 45 days’ time to report to the registering authorities about all the details pertaining to the transfer.
• If the owner of the bike has died due to an unfortunate incident, then the buyer or legal heir of the bike must inform this to the registering authority with required documents and death certificate within 30 days. After this he/she must apply for ownership transfer within 3 months.

Above is the general procedure for bike transfer. Normally, the following documents is what you need for bike ownership transfer.

Documents required for bike transfer in normal sale and purchase:

• Form 29 should be filled along with seller’s signature: 2 copies.
• Both the parties have to sign on Form 30 along with chassis print: 1 copy
• If the bike is brought from another region or RTO then he/she must produce a NOC. If the vehicle is transferred from a different state, then NOC of entry tax must be produced. The said vehicle in this case must be less than 30 months old.
• If it is a transport vehicle like a Lorie, Truck etc. Then Form TCA and TCR should be filled.
• If the bike has been bought on loan by the seller, then a NOC by the banker or financier must be produced to the registering authority at the time of transfer.
• Original RC, insurance, emission test, and tax paid receipts, address proof of the seller, three passport sized photographs, etc. one copy each of the seller should be submitted. According to Rule 81 of the Central Motor vehicles Rule, 1989, these above documents are to be submitted with a registration fee to the registration authority.

Be aware of the basic procedures and documents required for two wheeler insurance transfer. Because many people while purchasing a used bike do not check for insurance and third party insurance transfer and end up buying new insurance at a higher cost. Once all the procedures are complete, the buyer should cross check the received documents for future liabilities. It might be a second-hand bike that you are purchasing but when you bring it home, it’s as good as your new bike. So keep calm and start riding your new bike.