Does your second hand car need car insurance?

Posted by autobest on April 15th, 2021

It is not a new phenomenon wherein the car owners around the world have suffered a lot in terms of money to meet the eligibility criteria for having their second hand car’s insurance done at the right time. The fact that due to financial distress they are not able to pass the eligibility criteria for the claims is due to the reason that the owners from whom they have purchased the second hand car have not transferred the insurance policy in their name. The presence of valid contract between the owners is sine qua non to the name of the owner in the motor insurance policy that they pursue. So, all said, whenever any loss or damage is there, due to this discrepancy owners are not able to perform the insurance of their second hand car. But, you do not need to worry, as we at Auto Best, provide second-hand car insurance if all the conditions are duly fulfilled.

 Ignorance cannot be taken as the defence

According to various studies and researches conducted, it has been seen that there have been multiple instances where new owners are not able to claim for their loss or damage. Sometimes their ignorance leads them to such results. Thus, it is very important that there should be utmost presence of mind and awareness as to immediately transfer all the documents in their name so that they are able to claim damages for any mishap that happens in the future. Also, in order to avoid any legal problems, it is imperative that the previous owners are also aware and diligent towards transferring all the legal documents to the new owner.

What should you do after your purchase?

Section 157 of the Motor Vehicle Act provides for the new owner to get the insurance policy transferred in his name directly by applying to the insurance company within the matter of 14 days. Thus, the initial 14 days holds significant importance and the new owner had to transfer all in his name. Thus, after the expiry of 14 days, if the new owner is not able to transfer the documents in his name, the insurance company will not be held liable for any damage or loss done to the vehicle.

The process of policy transfer

The process of policy transfer is fairly simple and does not require much of your time. A few of the steps are given below-

• ·To transfer the policy, a fresh proposal form has to be filled along with the evidence of sale i.e. transfer of RC, Forms 29 and 30 duly signed by the previous owner coupled with transfer fee and previous policy copy. All these documents are required to be submitted to the insurance company in the time stipulated.
• ·In order to avoid any issue, it is important that you need to submit a copy of the new RC after it is issued by the RTO.
• ·In case of a claim, you are required to provide the proof of transfer of RC to the insurance company to get the claim.
• ·If the transfer process is still ongoing, the claim will not be repudiated, however, it will be given to you only when the insurance company receives the claim.