Successfully transferring car insurance is one of the most important parts of the car selling process. Many times people do not have the right knowledge about it.
Car insurance is very important to avoid financial risk due to accidents like road accidents. When you sell your car, you should keep in mind that the person to whom you have sold the car must get the car insurance transferred in his name. Similarly, if you are buying a second hand car, it is important to get the existing insurance policy for the car transferred in your name to avoid any future problems. If you have not transferred the policy in your name. In such a situation, there is an accident with your old car, due to which third parties are affected. So you will not be able to claim for third party. And you have to pay for the third party by yourself. Similarly, if you sell your car to someone else, you will need to transfer the existing vehicle insurance policy in your name to the new owner of the car.
Retaining No Claim Bonus
For every claim-free policy year, you get No Claim Bonus. Which helps you get a discount on your car insurance renewal premium. When you sell your car, you have to transfer the proceeds to NCB. Due to which the benefit of premium discount is available on the renewal of the new car insurance policy. To do this, you need to get the NCB certificate from your motor insurance company after intimating it at the time of selling the car. You will not get the NCB certificate unless you transfer the current motor policy to the new owner of the car.
If you do not transfer the existing motor insurance policy on your old car to your name. So you will not be able to make any kind of claim in case of an accident. This means that you cannot claim any kind of damage caused to the third party by the car. You will have to bear the entire cost for this yourself.
What is the process to transfer car insurance?
The four wheeler insurance transfer process deals with the transfer of ownership. Once the new owner buys the car, this policy is no longer valid for the old owner. This is because the name and address on both the registration certificate and the insurance document must be the same under the Insurance Regulatory and Development Authority of India (IRDAI) to claim. In order to transfer the existing car insurance from one person to another, you need to raise a transfer request with your motor insurance provider. Along with this, you should have the old car policy documents along with the new copy of the registration certificate, No Objection Clause (NOC) from the previous policy holder, new application form, inspection report and no claim bonus difference amount.
