{"id":1872,"date":"2024-01-16T09:36:28","date_gmt":"2024-01-16T09:36:28","guid":{"rendered":"https:\/\/elephant.in\/knowledge-center\/?p=1872"},"modified":"2024-06-05T10:42:54","modified_gmt":"2024-06-05T10:42:54","slug":"how-to-transfer-car-insurance-to-a-new-owner","status":"publish","type":"post","link":"https:\/\/elephant.in\/knowledge-center\/blogs\/car-insurance\/how-to-transfer-car-insurance-to-a-new-owner\/","title":{"rendered":"How to Transfer Car Insurance to a New Owner"},"content":{"rendered":"

Passing the Keys and the Policy: Understanding the Car Insurance<\/a> Transfer Process in India.
\nAre you scouting the internet to find solutions on how to transfer car insurance to a new owner in India?<\/p>\n

If this transfer process seems too much to get into, fear not. In this comprehensive guide, we\u2019ll help you understand the process of car insurance transfer in India, simplify the steps, list out various related requirements and provide you with crucial insights to ensure an easy transfer process for your car insurance. By the end of this guide, you\u2019ll have all the essential knowledge required to pass on your car insurance baton confidently.<\/p>\n

Understanding the necessity of transferring car insurance in India <\/strong><\/h1>\n

According to the Motor Vehicles Act of 1988, a car owner must have car insurance in India. Getting your car insured helps keep your car financially protected against unforeseen risks such as accidents, damage caused due to natural disasters, thefts, etc., as it helps cover the costs of the damages caused. Transferring your car insurance helps ensure that the new buyer is completely covered in case of any third-party damages and you are free from any third-party liabilities. If you are the one buying the car, make sure that the previous owner transfers the existing motor insurance policy to you after the purchase.
\nNo-claim bonus is not transferable from the seller to the new owner unless the new owner is a blood relative and if the seller has no objections to the transfer. Transfer of car insurance, as a seller, is also essential to retain your No Claim Bonus, which helps you earn a discount that can be used during the purchase of a new car insurance policy<\/a>. To do so, you must obtain an NCB certificate from the insurance company post transferring your existing car insurance.<\/p>\n

Who bears the responsibility for the transfer of the car insurance policy?<\/strong><\/h2>\n

Transfer of car insurance formalises the withdrawal of one party from an insurance policy agreement, once the other party approves. According to Section 157 of the Motor Vehicles Act, the seller is responsible for transferring the car insurance to the new owner. The parties must transfer car insurance policies within 14 days of procurement. If one fails to get the insurance transferred, the car will no longer be under insurance protection from the 15th day.<\/p>\n

How can car insurance be transferred to a new owner?<\/strong><\/h2>\n

The process of car insurance transfer is simple and goes hand-in-hand with the transfer of ownership of the car. When a car is bought by a new owner, the insurance policy of the previous car owner becomes invalid. This is because, according to the Insurance Regulatory and Development Authority (IRDAI), the name and address of the new owner on the car\u2019s registration certificate and insurance documents have to be the same for the owner to be able to raise a claim.
\nWhen purchasing or selling a used car, two important documents are essential\u2013 The Registration Certificate and the Car Insurance Policy. Once you get a hold of these two vital documents, you can submit a request to your car insurance provider to transfer your car insurance.<\/p>\n

What are the required documents for transferring car insurance in India?<\/strong><\/h2>\n

To effectively transfer your car insurance to the new owner, you must first gather the necessary documents and submit the same to the insurance company. Along with a transfer fee, there are certain other documents that you may need to provide. They are as follows:<\/p>\n