These days, manufacturers are releasing newer models of their most popular and desired scooters and bikes. Due to this, you may find it difficult to prevent yourself from selling your current bike to someone else only so you can buy a new one.
However, you should keep in mind that apart from selling the old bike and buying the new one, you will also have to carry out important formalities that legitimize the transactions. This includes completing the necessary paperwork of the process like transferring the bike insurance policy to the person you are selling to. If you fail to transfer your bike insurance to its new owner after the termination of the sale agreement, you run the risk of actually getting into a series of unwanted problems. Let’s take a look at why transferring bike insurance is important and how you can do it.
Why do you need transfer bike insurance?
According to the terms and conditions of the insurance company, the insurance of the car or bike is linked to the specific vehicle and not the car or bike owner. Therefore, when the ownership of the vehicle is transferred to a new person, the insurance must be transferred along with him. It is mandatory to complete the transfer of vehicle ownership as well as the insurance ownership transfer process. Here are some reasons for it:
If you have caused damage to a third party or their property and have to file a third party bike insurance claim, the insurance policy must be in your name. This is because you are the owner of the bike and any damage done through it is your liability to bear. Once you sell the bike, this liability should shift to the new owner of the bike. If the policy is not transferred, the third-party claim will have to be made by you and it will be denied since you are no longer the owner of the vehicle. Therefore, it is important to transfer all vehicle documents to your name. *
No claim bonus
If you do not make any claim during the policy term, you will be rewarded with an NCB by the insurance company, which will inevitably result in a deduction on next year’s premium. As a seller, you must notify your insurance company and encash the NCB certificate, which will allow you to get a concession on the premium when you have to purchase the new insurance policy. *
* Standard T&C Apply
Steps for Easy Bike Insurance Transfer
Here are the steps you need to follow to ensure the smooth transfer of your bike insurance to the new owner of the vehicle:
- Contact your insurance company and let them know about the bike insurance transfer.
- Check and get the No Claim Bonus (NCB) certificate for the benefit you have deposited in your bike insurance policy by now.
- Use the No Claim Bonus to get a premium concession on the new bike insurance policy you purchase.
- Tell the new bike insurance owner to contact the insurance company and register yourself with the new insurance policy with all the benefits of the current insurance policy.
- Inform and document the transfer of ownership of the vehicle with the same RTO on which you actually registered your bike at the time of purchase. Be prepared with the necessary documents to avoid any problems and delays.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.