Bike Insurance Transfer

The process of transferring the ownership of your bike’s insurance policy to the new owner must be processed within 14 days of the sale of the vehicle. This should be done by submitting all the relevant documents and the insurance related transfer forms to the insurance company.

India is one of the biggest markets for two-wheelers in the world. Bikes are more favoured considering the heavy traffic on Indian roads. It is easy to park and navigate through traffic and is fuel efficient. Most consumers tend to sell their old bikes and buy new ones since two-wheelers get modified with better technology for more convenience on Indian roads. As a result, bike insurance transfer becomes necessary. The buyer must receive the previous vehicle's insurance once the deal gets finalised. If you don't, you could be held liable for any mishaps or damage to the bike in the future.

The process of bike insurance transfer online is simple. The bike insurance transfer process is considered successful only if the name on the bike's insurance policy is changed to the new owner. When purchasing or selling a used two-wheeler in India, one must carry out its transfer of insurance and go through the process. If the bike insurance policy is transferred, you must duly notify the insurance company.

If you are looking for ways to understand how to transfer bike insurance from one person to another, don’t worry. Follow the steps mentioned below for an easy bike insurance transfer online:

• Within 14 days of the official transfer of two-wheeler ownership, you must apply for transfer of two-wheeler insurance with the insurer through their official website.

• A bike insurance transfer requires a few specific pieces of paperwork. Make sure you have the following papers with you at all times: RC, documentation stating the date of ownership transfer, the original insurance policy paperwork, the name of your dealer, and the history of premium payments for the insurance policy.

• KYC documents from both the owner and the buyer are essential. To keep a record of this transfer, carry your PAN card, Aadhaar card, driver's licence, and other official documents.

• You may extend the coverage if you add the name of another vehicle to the current policy as the seller. Since the pro-rata equation is used, it may cause the premium rate to vary.

• During the transfer of the two-wheeler’s insurance, the seller must provide proof of third-party bike insurance so that future premium estimation can be done for the plan.

However, you do not necessarily have to forfeit your collected No-claim Bonus just because you are selling your bike. Give your insurance company your NCB certificate to receive enticing savings on the rates you must pay for the new bike's policy.

If 14 days have gone after the transfer of ownership, the buyer of a used bike must get new insurance coverage for the bike they have purchased. This is because the existing third-party insurance coverage will expire after 14 days following the transfer of ownership.

While a new bike owner will undoubtedly benefit from such a move, the seller may feel they stand to lose. When you transfer an insurance policy for a two-wheeler, there are many benefits involved, that include - 

1. Protects Against Future Litigation Issues - 

If the new owner crashes your old bike, an insurance policy will start paying once the new owner's name is listed on the policy documents. A bike insurance transfer makes it easy to avoid these hassles, whether they are related to the financial side or the legal obligations.

2. No-claim Bonus for the New Policy - 

You are entitled to a No-claim Bonus, or NCB, if you avoided claiming the car's insurance before the ownership transfer. You can obtain a certificate proving your NCB eligibility during a policy transfer to secure your new bike when you buy your next insurance policy. You would forfeit the accrued NCB from this prior policy if you didn't start the official transfer process.

Here’s the cost of bike’s ownership transfer:

• The fees of bike’s ownership transfer to be paid to the RTO ranges between Rs. 30 to  Rs. 35, varying from state to state.

• The smart card fee levied by the RTO is Rs. 200.

Here are certain things you need to keep while making a bike insurance transfer:

• If the buyer lives in the same state, you must transfer the bike insurance ownership within two weeks to the regulatory party.

• If the buyer lives in another state, you must transfer the ownership within 45 days and report the same to the regulatory party. 

• If the existing owner dies during the transfer process, the buyer can report the same to the regulatory party within a month. 

Follow these easy steps to transfer second-hand vehicle insurance:

• The first step is to have all documents required to initiate the insurance transfer. 

• Once you transfer the ownership, apply for a bike insurance transfer.

• Opt for a comprehensive vehicle insurance plan. You can choose add-on covers for enhanced coverage.  

• Submit forms 29, 30 and Sale Deed.

• Your vehicle is assessed before the transfer of the insurance policy. 

• Once approved, the insurance policy is transferred to the new-owner. 

Now, you may have understood how to transfer a bike's insurance. Generally, there is nothing wrong with always keeping a backup for unforeseen circumstances. Whether you are looking for an insurance policy for your new two-wheeler or a buyer who recently bought a second-hand bike and didn't transfer the insurance policy from the owner, you should avail of the best comprehensive insurance plans available in the market.

Bajaj Markets is a platform that offers various standard two-wheeler insurance plans from different insurers at lucrative costs. You can choose the one that best suits your needs and ensure you remain financially protected in the case of heavy damage to your vehicle.