Things to remember when transferring an insurance policy for a used car

Over the last decade, used four-wheelers have gained popularity. Many prefer buying used vehicles to new ones. Some buy second-hand cars since they live in accident-prone areas or are not skilled drivers and do not want to pay big for getting their vehicles repaired often. Besides, used cars undergo lower depreciation thanbrand-new ones. This has raised the sale of used cars.

As aware, car insurance is mandatory for every four-wheeler plying on the Indian roads. The car can be driven only if it has a minimum coverage of third-party liability according to the Motor Vehicle Act, 1988. So, if you have a new or used vehicle, it should at least have the third-party cover.

Transfer of insurance for a second-hand car

If you are considering a used four-wheeler, chances are there is an ongoing car insurance policy. With the sale, the insurance is of no use for the previous owner. But you cannot wait for car insurance renewalfor buying the policy in your name. It is only logical to transfer the ongoing plan to your name instead of buying it.

Before getting the car policy transferred to your name, be aware of two kinds of coverages –comprehensive or third-party. The latter covers only third-party liabilities and person. But a comprehensive plan covers both third-party and own vehicle along with self. When the insurance policy gets transferred, the third-party insurance or coverage under the comprehensive plan automatically gets transferred up to 14 days from the vehicle sale.

You need to get the existing policy to your name for your damage coverage or third-party cover after 14 days.

Things to remember while doing the transfer of insurance for used vehicles

Transfer within two weeks

You should always transfer four-wheeler insurancefrom the old owner to the new within 14 days of the sale. According to Section 157 of the Act, the one who has bought the car should transfer the policy within two weeks. The responsibility is of the new owner to initiate the process to get the transfer done. But if the new owner does not start the process, then the old one should remind for transferring the plan to avoid legal or monetary troubles.

Fill a fresh proposal form

You need to fill a new form and submit the proposal to the insurance company for getting the transfer done. You must submit forms 29 and 30 to the insurer. Moreover, submit a copy of the existing online car insurance to begin the transfer process.

Submit new RC to the insurer

The change of car ownership is reflected by the change in the owner’s name in the registration certificate. Apply for the change of car owner’s name on the RC of the second-hand vehicle before applying for car insurance online or offline transfer. It takes a few days to receive the new RC for the second-hand vehicle with your name. As you receive it, submit the same to the insurer.

What happens if there is no transfer?

If you fail to get the policy transferred within 14 days, your car will not hold proper protection. This is because the insurance company will be under no obligation to cover any financial losses arising from the second-hand car, irrespective of whether you incur any third-party or own damages.

Keywords: car insurance, car insurance policy, online car insurance, car insurance online, car policy