The Motor Vehicles Act of 1988 has made it mandatory for bike owners in India to keep at least a basic two-wheeler insurance policy handy.
Bikes or two-wheelers are among the most popular modes of transport in India. They are economical and easier to navigate through heavy traffic and narrow roads. However, bikes lack fundamental safety features and are dangerous compared to four-wheelers. Keeping this in mind, the Motor Vehicles Act of 1988 has made it mandatory for bike owners in India to keep at least a basic two-wheeler insurance policy handy.
When buying a new bike, you can easily take bike insurance online or offline. However, if you are buying a second-hand bike, you must remember to get the bike insurance ownership transferred to your name to avoid associated legal issues. Let’s talk about this in detail.
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Can you transfer a bike insurance policy for a second-hand bike?
Yes, bike insurance can be transferred from the seller to the buyer. Therefore, if you are buying a second-hand bike, you can ask the seller to transfer the insurance cover to your name. Similarly, if you are selling your bike, you must transfer your bike insurance policy to the buyer within 14 days of selling the bike.
Is it important to transfer your bike insurance policy?
If you are selling your bike, it is important to transfer your bike insurance policy to the new owner to prevent legal issues. Under Section 157 of the Motor Vehicles Act, 1988, the seller must transfer his/her bike insurance policy to the buyer within 14 days of selling the vehicle. If the seller fails to do so, he/she will be legally liable for any third-party damage done by the new owner.
If the bike insurance transfer is not complete within 14 days of the sale, the buyer and seller may face the following consequences —
- Financial implications on the seller: For example, suppose you have sold your bike, and the new owner injures a third party or property with the bike. If the bike insurance policy is still in your name, the court will ask you to compensate the third party for the loss they incurred.
- Claim rejection: If the new owner meets with an accident and his/her bike gets damaged, the person cannot file a claim with the insurance company for the same. In this case, the new owner will have to bear the bike repair costs and other associated expenses from his/her pocket.
How do you transfer a bike or two-wheeler insurance policy?
If you have sold your bike, you must transfer your bike insurance policy to the new buyer within 14 days of ownership transfer. The following are the steps to transfer a bike insurance policy:
- Step 1: Notify the insurer
Inform the insurance company about bike ownership and insurance transfer by submitting a written request.
- Step 2: Collect the required documents
The following are the documents required for bike insurance ownership transfer:
- Transfer of ownership or sale deed
- Original documents of your bike insurance policy, along with the premium paid receipts
- Original RC or registration certificate of your bike
- NOC or no objection certificate from the seller
- Forms 29 and 30, duly filled and signed by both the parties
- Passport-size photographs of the buyer
- Address proof and identity proof of the buyer
- Step 3: Submit the documents along with the transfer fee
Once you have collected all the documents, submit them to the insurance company. You must also submit a written request to the insurer and pay a nominal transfer fee. - Step 4: Receive the policy documents
The insurer will verify the documents and other details. They may also assess the bike before transferring the insurance policy. If everything looks fine, they will process the transfer request and issue a bike insurance policy bearing the name of the new owner. The policy documents will be sent to the new owner by email or courier.
Conclusion
To sum up, bike insurance transfer is important for both buyers and sellers. Therefore, whether you are selling your bike or buying a second-hand two-wheeler, remember to transfer the insurance policy within 14 days of the sale or change in ownership. Also, it is always wise to keep a comprehensive bike insurance policy handy for better coverage and financial security. A comprehensive bike insurance policy covers own damage as well as third-party liabilities. Moreover, you can also enhance your insurance coverage with important add-ons for better financial protection.
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