In today’s economic climate that encourages consumers to “reduce, reuse, and recycle,” it is increasingly common for people to buy used or used vehicles. In India, the demand for used cars has grown exponentially. However, vehicle ownership does not end with choosing the ideal make, the preferred model, and a buyer that fits your price. The successful transfer of auto insurance to the new owner is an essential part of the process for both buyer and seller.
When buying a new car, the first step is to transfer the registration certificate. The new owner should view this as an essential step in the buying process and not as an afterthought. Unfortunately, most people do not know how to transfer car insurance. This is the step that precedes the automatic insurance transfer process.
As you already know, car insurance is taken out to protect a car against unforeseen risks. If you no longer own the car, there is no point in having car insurance with you. So when you sell your car, you need to make sure that the new vehicle owner transfers your 4WD insurance to your name. When buying a used car, make sure the car insurance is transferred to your name.
To avoid future liabilities
If you have purchased a used car, it is important that the existing insurance policy for the car be transferred to your name to avoid future liability. If you have an accident with your used car that results in third-party liability, you will not be able to make any third party claims since you have not transferred the policy to your name. As a result, you will have to pay your obligations to third parties yourself.
If you sell your car to someone, you will also need to transfer the existing car insurance to the new owner of the car. Otherwise, you may have to pay for the involuntary third party liabilities caused by the new owner of the vehicle as you continue to be the policyholder of the sold vehicle.
To retain your NCB
For each year of no-loss insurance, you will receive a no-claims premium with which you will receive a discount on your auto insurance renewal premium. When you sell your car, you must rollover the earned NCB so that the premium reduction can be used when the new car insurance policy is renewed. To do this, you need to obtain the NCB certificate from your car insurance company after informing them of the sale of the car. The NCB certificate can only be obtained if you transfer the current car insurance to the new car owner.
The car insurance transfer process works in conjunction with the transfer of ownership. Once the car is purchased by the new owner, the previous owner’s policy no longer applies. According to the Insurance Regulatory Authority of India, the name and address on registration and insurance documents must match in order to file a car insurance claim.
This is necessary because, in an emergency, it is desirable for the new owner to reimburse the cost of the damage. Also, not having your vehicle insured could result in the denial of a claim.
With a transfer fee of Rs 50, the following documents are required for automatic transfer: