To transfer the ownership of the insurance policy, you can send a request to your insurer for the same
Selling your used car or bike in the pursuit of a new one is not uncommon. When the vehicle is sold to another, its ownership also changes. The buyer becomes the new owner. A lot of paperwork is involved in transferring the ownership and insurance policy to the new buyer.
Do you know what is the paperwork involved when transferring ownership of your car or bike?
Many don’t and that is why transferring ownership seems like a difficult process. In reality, it is not if you are aware of the documentation. So, here is a car or bike ownership transfer documents checklist:
The primary document is the Registration Certificate of the vehicle. The RC book needs to be transferred to the new owner. The new owner would then verify the vehicle details, submit the RC book in the Regional Transport Office (RTO) and get the ownership details changed.
Every vehicle has an insurance cover. This cover also needs to be transferred to the new buyer when the vehicle is being sold. The car or bike insurance transfer process is easy. To transfer the ownership of the insurance policy, you can send a request to your insurer for the same. The insurance company would verify all the details and transfer the ownership of the policy in the name of the buyer. You can, however, retain the accumulated no claim bonus.
This bonus can be transferred to the insurance policy of a new vehicle which you buy in place of your old one. To transfer the bonus, avail a No Claim Bonus certificate from your insurance company. The certificate can then be submitted at the time of buying a new policy for transferring the no claim bonus of the old policy.
Other forms required
To transfer ownership, you are also required to avail specific forms from the RTO, fill those forms and submit them along with the RC book to change the ownership details. The forms required include the following:–
o Form 28 which is the No Objection Certificate
o Form 29 which is the Transfer of Ownership form
o Form 30 which notifies the RTO of your intention to transfer your vehicle
Road tax card
Road tax is paid on every vehicle. While transferring ownership, you have to give the road-tax card to the buyer. The card contains the details of the road tax paid on the vehicle. The buyer then submits the road tax card to the RTO to complete the transfer formalities.
PUC (Pollution Under Control) certificate is required for all vehicles which are older than six months. Your vehicle’s PUC certificate should be handed over to the buyer. If the certificate is valid, the buyer can use the certificate for the future. If the certificate is invalid, it needs to be updated either by you or by the buyer.
There are some other points which an individual should remember. These include:
-The RTO should be informed at all times when the transfer of ownership is taking place.
-Your original insurance policy document is also important. Though the insurance certificate does the work, keep your original policy handy.
-The buyer’s identity proof and other KYC documents would also be required by the RTO and also by the insurance company to complete the transfer.
If the buyer’s documents are not available, ownership would not get transferred. So, ensure that the buyer has all his documents ready.
The author is co-founder, Turtlemint