How Can You Transfer Bike Insurance

Two wheelers continue to be the smartest mode for commuting when it comes to hacking through the dense traffic on Indian roads. However, bikes are also more vulnerable to road accidents as compared to any other mode of transportation. This is the major reason for getting your two-wheeler insured is one of the essential things to do for ensuring continued protection from damages resulting from accidents and natural and human-made calamities.

While buying two-wheeler insurance is mandatory by law, most people don't know what they can do with the insurance policy after/while selling off the vehicle or transferring ownership to another person. A policyholder should be aware of the primary procedure of transferring their insurance policy and in retaining the benefits of the policy.

When you sell your old vehicle for getting a new one, the entire transfer process comprises of transferring the vehicle ownership and the insurance policy after informing the RTO regarding the sale of your vehicle.

Though two-wheelers are considered to be the smartest mode of transport, given the fragile state of Indian roads, two-wheelers are the most vulnerable to road accidents than any other vehicle. It is important t buy a comprehensive insurance cover for ensuring the continued protection of your bike/scooter from accidents and other types of dangers. A regular two wheeler insurance policy covers your two-wheeler from a range of unexpected dangers, risks, and threats.

Policyholders must know the statutory terms of their two wheeler insurance policy. This information comes in handy while renewing the policy, and it can also be used while transferring the insurance claim of the vehicle to the buyer.

Constituents of A Two-Wheeler Insurance Policy

Most of the two-wheeler insurance providers provide insurance policies which mainly constitute two important components. The first component comprises of the important details such as the name, address and phone number of the policyholder. It also records the term of the policy, policy number, policy issue date, location etc.

The second component comprises vehicle-related details such as vehicle registration number, model, year of manufacture, engine displacement capacity, IDV, coverage, engine and chassis number etc.

What's The Procedure To Transfer Your Two Wheeler Insurance?

• For transferring your two wheeler insurance policy, the policy must be transferred in the name of the seller.

• The transferee should apply when they are required the submit the policy-related documents.

• The documents and details needed for the procedure are the Registration Certificate of the vehicle, the date on which insurance policy was transferred and the details linked with the previous insurance policy.

• The name of the previous vehicle owner and policyholder, policy number and date of insurance should be submitted to the insurer for the issue of a fresh certificate.

Two Wheeler Insurance Online

Third-party premium is considered for premium calculation. The premium is estimated depending on own damage and third-party premium segment. The section on Own Damage is for the insured two-wheeler and accessories. It will also show the discounts applicable on the insurance, such as No Claim Bonus.

When you dispose of your old two-wheeler for making way for a better and newer mode of commute, there are some things you should be careful about. Transferring ownership of your old vehicle also involves correctly transferring all the associated documents to the new owner.

Benefits of Transferring Your Insurance Policy

Many people assume that selling off their two-wheelers is the end of responsibility. However, sometimes, there could be legal complexities and ambiguities if the paperwork of the sale is ambiguous. The procedure might seem like a lot of work but it carries huge importance to prevent yourself from any liabilities which might result from the actions of the buyer of the vehicle. While it is essential to handover all the documents to the buyer, it is equally important to transfer the insurance policy to the buyer's name. It could have the following benefits:

Guarding Against Future Liabilities

If the vehicle's new owner causes any damage to a third-person or their properties then you need to file a third-party claim. If you have transferred the ownership of your vehicle but not the insurance policy, you'll be held legally liable for the accident. For preventing yourself from such troubles, you must ensure that all the documents including the insurance policy are transferred properly to the buyer of your old vehicle.

Withholding the No Claim Bonus

If you haven't made any claims for your two-wheeler insurance policy during the previous year, you are eligible for getting a No Claim Bonus (NCB) from your insurance provider company. NCB is an incentive which is offered to you by the insurance provider for riding safely and not making any claims for more than a year. When you transfer ownership of your vehicle, you must inform your insurer about the same and then collect a No Claim Bonus Certificate which could help you in availing discounts on the premium applicable on your next insurance policy.

For selling your old two-wheeler to any person, make sure that you complete all the paperwork, inform the RTO regarding the transfer by following the standard procedure and transferring all the associated documents which include your insurance policy to the buyer of your vehicle.