How To Transfer Ownership And Bike Insurance From One Person To Another?
Posted by sanjay on May 4th, 2017
Though you love your bike, there comes a time when you look forward to a newer mode of conveyance. Out goes your old bike and in comes either a new car (if you can afford it) or another bike (a newer model). In both the cases, you have to dispose off your old bike and you start looking for a buyer. Though the selling price would be your major concern, do spare a thought about the process of correctly transferring the bike’s ownership and also the attached insurance policy.
When is the transfer required?
This is a simple question, isn’t it? You transfer the ownership and insurance when you sell off your bike.
How to transfer?
To transfer the ownership and insurance of your bike you need to follow some steps. Various documents are involved and missing any one would jeopardize the entire transfer process. So, let us understand:
How to transfer the ownership
How to transfer the insurance policy
Transferring ownership of the two-wheeler
When initiating and completing the transfer of ownership, you would have to hand over the following documents to the buyer:
Copy of the bike’s insurance policy
Completed Form 28 which is for transfer of ownership
Completed Form 29 which is a No Objection Certificate
Completed Form 30 which is an application for intimation of transfer or report of transfer
The RTO is also to be informed of the sale. When the documents are duly handed over to the buyer, you can successfully transfer the ownership of your bike legally.
Transferring insurance policy
When you transfer the insurance policy to the buyer, there are various steps which you should follow. Such steps are listed below:
Firstly, you should approach your insurance company from which you have bought your two-wheeler insurance policy. You should inform the company of the transfer and avail a No Claim Bonus Certificate. By virtue of this certificate, any No Claim Bonus which you have accumulated in your policy would remain in your name and wouldn’t get transferred to the buyer. As such, when you buy a fresh insurance policy for your new vehicle, you can avail the premium discount using the accumulated No Claim Bonus of your previous policy. To do so, the No Claim Bonus Certificate would be required.
The buyer of your bike insurance would then have to approach the insurer and get his personal details recorded in the existing plan.
You should also inform the RTO of your bike’s transfer of ownership.
Why should you transfer the insurance policy?
Following elaborate steps to transfer the insurance policy seems a lot of work, especially when you are no longer going to use your bike. This is why most of us dilly-dally and fail to stick to the fundamental requirements. We either do not provide all the relevant documents or do not transfer the policy thinking that the entire onus now rests on the buyer. But we are wrong. Transferring the insurance policy is your responsibility as well. It is always advised because of the inherent benefits such transfer bestows. Do you know what such benefits are? Let’s see:
Retention of No Claim Bonus – any bonus you earn because of not making any claim in the previous policy years entitles you to a discount. It was your safe driving which caused no accidents and, thus, incurred no claims. Therefore, you are entitled to enjoy the benefits of the No Claim Bonus earned on your policy, especially when it allows premium discounts. If you do not transfer the policy, you cannot avail the No Claim Bonus Certificate and you lose the discounts earned by you. Would you want that?
Freedom from future liabilities – suppose the new buyer of your bike causes damage to any person or property while driving the bike. If a third party claim is raised on your policy and you are named as the policyholder, you would be legally liable. Though your insurance policy would pay off the financial claims, you would have to ensure such claim settlement. Transferring the policy, therefore, frees you from future
[Source: http://www.turtlemint.com/blog/how-to-transfer-ownership-and-bike-insurance-from-one-person-to-another/]Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members
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