Posted by 
The appeal of used automobiles is rising as more individuals want to be the owners of their own personal transportation. Purchasing a pre-owned car offers significantly greater value with minimal sacrifice in utility or prestige, especially in light of the financial restraints that have affected many people in recent years.
When purchasing a used car, there are a few crucial stages that every buyer is aware of. These include giving the car a thorough inspection before purchasing and transferring ownership. The transfer of auto insurance from the prior owner to the present owner is one process that is frequently overlooked, though.
Selling an old car is frequently like saying goodbye to a dear friend. Making sure your four-wheeler friend is well-cared for at their new residence is as crucial, though. You give the new owner of your automobile everything when you sell it, including the Registration Certificate (RC) and your insurance policy. Check out Policy Ghar if you want to know about car insurance, health insurance plan, etc.
Why is transferring your car insurance necessary?
When selling your car, transferring your insurance plan is an essential procedure. This is the reason why:
Legal compliance: In India, having auto insurance is mandated by law. But since you are no longer the car’s owner, the insurance is nullified when you sell your car.
Protection for the Purchaser: By transferring auto insurance, the new owner is shielded from potential harm, accidents, and third-party liability.
Benefits from your insurance will continue: If you transfer your auto insurance, the new owner will get the same benefits as the original policyholder. Future renewal premiums may also be less expensive as a result of this.
Compliance with the lender: Should the ownership of the car change, the lender will want you to update their records.
How may one individual in India transfer another’s car insurance?
Transferring an insurance policy to your name is a necessary step in the process of transferring car ownership. The customer should make the proactive decision to guarantee that their car is insured by a motor insurance policy.
That being said, the transport department’s laws provide that the seller must make it easier for the buyer to transfer the auto insurance.
In general, the procedure of transferring auto insurance is simple. Obtaining the required paperwork for title transfer is crucial before beginning the process when purchasing a used car:
Registration Certificate: Verify that you possess the vehicle’s original Registration Certificate (RC).
Insurance Policy for a Car or Bike: Get the original policy document from the seller.
After obtaining the necessary paperwork, do the following actions to get the auto insurance transferred into your name:
-Please download Forms 28, 29, and 30 by visiting the website or office of the relevant Regional Transport Office (RTO).
-Provide correct information on the forms with all relevant details. Don’t forget to provide the vehicle’s details and your contact information.
-Send these forms, along with any other necessary documents (if any), to the closest RTO. The requirements for these extra documents may differ based on your particular RTO, so it’s advisable to confirm them in advance.
-The RTO will process the forms and issue a Clearance Certificate when you have submitted them. This certificate is evidence of the sale and the fulfillment of all requirements.
-Bring the Clearance Certificate together with other necessary paperwork to the insurance provider where the policy was obtained. To start the transfer procedure, they will need these documents.
-Make that all costs related to transferring the insurance policy are paid to the insurance provider in accordance with their instructions if there are any.
-You will acquire the insurance coverage in your name upon fulfilling the required procedures and making any necessary payments. You can choose to get the policy paper via email or have it couriered to your address.
What paperwork is needed to transfer ownership and insurance?
The following paperwork must be submitted with the application to transfer ownership of the auto or bike insurance in order to enable the transfer of vehicle insurance:
-Original Registration Certificate (RC): Please present the vehicle’s original RC paperwork.
-Receipt from RTO: For Forms 28, 29, and 30, please send in the receipt that you received from the Regional Transport Office.
-No Objection Clause (NOC): Get the vehicle’s prior owner to provide you with a NOC.
-Address Proof: Provide a legitimate document proving the buyer’s address.
-Passport-Sized Photos: Make sure the buyer has passport-sized photos.
-Original copies of both the current and old insurance policy documents should be provided. This demonstrates that the car is insured right now.
-Insurance Company Inspection Report: In certain circumstances, an inspection report of the car may be needed by the insurance provider. In most cases, the insurance company conducts this study to evaluate the vehicle’s condition and establish if it is insured.
Reasons for Needing a Car Insurance Transfer
In Order to Prevent Future Liabilities:
You are unable to make a third-party claim in the event that an accident involving your used car results in third-party liabilities since the prior owner did not transfer the policy into your name. You will therefore be responsible for paying off your third-party debts on your own.
Keeping Your No Claim Bonus:
An important consideration for sellers is the No Claim Bonus. Prudent policyholders who haven’t filed a claim in a calendar year are rewarded with a No Claim Bonus.
NCB is offered as a reduction in your damage premium.
Which Documents Are Needed When Transferring An Auto Insurance Policy?
To ensure a secure transfer of your auto insurance policy, you must have certain documents ready when you give ownership to someone else. The documents you will need are as follows:
-The vehicle’s original registration certificate (RC)
-RTO receipt for Forms 28, 29, and 30, attesting to the transaction and signed by the buyer and seller.
-The vehicle’s previous owner has provided a Certificate of No Objection.
-Evidence of the buyer’s residence
-Passport-sized photos of the buyer and vendor.
-Supporting documentation for an active insurance policy.
-The insurance provider gave a report on the vehicle’s inspection.