Although buying a new car marks as a breakthrough for your life, it demands extensive research and homework. Right from selling your existing car to deciding on the new four-wheeler, you need to take care of multiple aspects while purchasing a new car.
Not trying to kill the enthusiasm linked to it, but when buying a new car and selling the old one, you also need to transfer car insurance. The Motor Vehicle Act, 1988 made it mandatory for car owners to ensure they transfer their car insurance to the new car owner.
But, how do you go about the entire process of car insurance transfer?
This article speaks in detail about how you can transfer car insurance.
How to Transfer Car Insurance?
You need to make sure that the ownership of your car has been successfully handed over to the new owner before transferring the car insurance.
Following documents are required for passing on the car’s ownership to the buyer:
- Original Registration Certificate
- Application Form 29, 30 (with both, seller’s and buyer’s signatures)
- An affidavit from the seller and purchaser regarding the transfer of car’s ownership
- Address Proof of the purchaser
- No Objection Certificate from the concerned RTO/AETC in case of Transport Vehicles
- Valid Insurance Certificate
- Appropriate fee
Once you have transferred the car’s ownership, you can transfer car insurance as well. The insurance company will ask for the following documents:
- Application for transfer of ownership
- Original Registration Certificate (RC) with the name of the new owner
- Old insurance certificate
- The required fee, if any.
The insurance company will initiate the car insurance transfer and share the updated policy (with the changed insuree name) once you have submitted the required documents. However, your job does not end here.
Do not forget to get your No Claim Bonus Certificate.
You are entitled to receive a cumulative No Claim Bonus if you have not made any claims on your car insurance. This bonus can help you reduce the premium amount for own damage cover, which can be carried to the new car as well. To avail this benefit, you need to first obtain the No Claim Bonus certificate that reflects the cumulative bonus from your insurance company.
Car insurance transfer is an easy task, provided you follow the process and submit the required data and documents. If you are too confused about the procedure, you can always contact your agent to transfer your car insurance. Do not skip the car insurance transfer process if you want to avoid the legal formalities that may arise in case the new car owner makes a claim.