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This article was first published 6 years ago  » Getahead » How to transfer your car insurance

How to transfer your car insurance

By Naval Goel
Last updated on: July 30, 2017 09:12 IST
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There can be many reasons for doing this; Naval Goel explains the entire process in seven simple steps

Illustration: Dominic Xavier/

When it comes to your car, it is extremely essential to get it covered under insurance.

There can be various reasons for transferring the vehicle from the original owner to somebody else: like say, when you have decided to buy a new car and want to sell out the older model or maybe when you want to transfer the ownership to your wife and get a new car for your family.

The reasons can be many.

You are required to identify the particular reason for which the vehicle is getting transferred.

Registration and title

The registration documents must remain in order for processing the transfer. Without these documents, the insurance and ownership transfer is not possible at all.

So, you are required to arrange the documents properly. You can create a file folder to keep the important documents of your car.

Other documents may be required for purchasing the new car or selling the used car.

Essential documents for transfer of ownership:

  • Address proof of buyer
  • Registration certificate: original
  • Insurance certificate: original
  • The transfer of ownership documents and the affidavit from the seller
  • No objection certificate from RTO for the transport of vehicle
  • Application form no 29 and 30

Essential documents for transfer of insurance:

  • Application for the change of the title
  • Insurance certificate
  • Registration certificate with the name of the transferee in original. The new buyer or the owner is considered to be the transferee in this case.

Transfer from one person to another

The ownership of the car can be transferred by providing the original bill of the sale.

After the transaction, the money changes hands and the vehicle changes the garage.

The title must be signed by both the parties while the proof of insurance and registration can be kept safely within the folder which can be required by the insurance agency.

Take help from professionals

The insurance agents can help you in completing the vehicle transfer process successfully. As soon as the documents are presented, the insurance agent provides a definite grace period and notifies the authority about the same.

If the insured person fails to report to the company within the grace period, the insurance company has the right to cease without providing any discount or refund which was provided earlier.

If the car insurance is being transferred to the same user for purchasing the new vehicle, the insurance authority can be informed about the same.

The parties must make sure that they preserve the No-Claim bonus certificate from the existing vehicle to the new model.

Get a test ride

Before fully transferring the insurance, you must take a test ride of the new vehicle.

As a buyer of the new vehicle, you need to check and ensure that what you are buying is genuine and trustworthy. Once you are assured, then you can start off with the process of getting the registration documents and insurance papers transferred in your name.

Transfer NCB

While transferring the insurance, the NCB requires to be transferred also. You need to submit the agreement form of buyer-seller with the request letter of transfer of the NCB from the existing insurer.

Here, the insurer issues the certificate of No Claim bonus which is valid for three years and you are required to submit this document to the new insurer.

If you are switching at the time of the renewal, you will require only the policy document of the previous year.

The transfer of the motor insurance generally does not require much effort from the insured person if all the valid documents are present with him. It is always recommended that the proof of the deal of the transfer is obtained from the concerned authority.

This will be useful if there are issues of avoidance in the future.

The used car insurance can be transferred either to a new owner or a new vehicle through the web portals.

It is always advised that the entire information should be properly analysed by both the parties before the actual transfer of the insurance of the vehicle.

Naval Goel is CEO and Founder,

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