What is the procedure to transfer my insurance?

The procedure of transfer of a car insurance policy is as follows. The cost of insurance transfer from the old owner to the new buyer is borne by the new buyer. The fee for car insurance transfer from one party to another is Rs. 50 transfer. Additionally, the following documents are required for car insurance transfer:

• New copy of the registration certificate/form 29 - a notice on transfer of ownership
• Old policy document
• No Objection Clause (NOC) from the previous policy holder that is form 28
• New application form
• Inspection Report -  this is to be carried out by the insurance company
• No claim bonus difference amount

Once the car is bought by the new owner, the policy of the previous owner is not valid anymore. According to the Insurance Regulatory and Development Authority of India (IRDAI), in case a car insurance claim has to be filed, the name and address on both the registration and insurance documents have to be the same. This is required because just in case of an emergency, it comes handy for the new owner to recover the cost of damages. In addition, failure to insure one’s vehicle can result in denial of a claim and law.

If you fail to transfer your car insurance policy from the old owner to the new owner, it is no longer valid. Once the car insurance policy becomes invalid your car is fully at risk. If anything happens to your car, you are not liable to receive any kind of cover for the damage caused. So, make sure to transfer the insurance policy while purchasing a second-hand car.