All You Need to Know About Transferring Bike Insurance

If you’re selling your bike or buying a second-hand one, transferring bike insurance is an essential step many overlook. It ensures the insurance policy reflects the new owner, keeping both the buyer and the seller legally safe and financially protected.

This guide will walk you through the process, requirements, and benefits of transferring bike insurance. We’ll also explain how to use tools like a bike insurance calculator to make informed decisions.

Why is Bike Insurance Transfer Important?

When a two-wheeler changes ownership, the existing insurance policy does not automatically transfer to the new owner. Legally, the new owner is required to have valid insurance in their name.

Failing to transfer the policy can result in claim rejections or legal issues in the event of an accident. Additionally, it protects the previous owner from being held liable for any mishaps that may occur after the sale.

What does the Motor Vehicle Law say?

According to the Motor Vehicles Act, all vehicles on Indian roads are required to have a valid third-party insurance policy. This is the minimum requirement enforced by the government.

However, own damage cover is optional and can be purchased for broader protection. When transferring ownership, the third-party policy must be transferred within 14 days of the sale.

During this 14-day grace period, the third-party policy remains valid even in the previous owner’s name. But for a seamless claim process and continued own damage coverage, it is advisable to complete the full insurance transfer immediately.

Documents Required for Bike Insurance Transfer

To initiate the transfer process of bike insurance, keep the following documents ready:

Original insurance policy document
Sale agreement or proof of sale
Registration certificate (RC) of the bike
Form 29 and Form 30 (issued by the RTO)
Copy of Pollution Under Control (PUC) certificate
Road tax receipt
Passport-size photos of the new owner
Valid driving licence of the new owner

Steps to Transfer Bike Insurance

Inform the Insurer:
Notify your insurance provider about the change in ownership. Some insurers allow you to initiate the process online.
Submit Required Documents:
Please provide all necessary documents along with your application to transfer the policy.
Pay the Transfer Fee:
A nominal fee is usually charged for policy endorsement in the new owner’s name.
Get the Policy Endorsed:
Once the insurer verifies the details, a fresh policy certificate is issued with the new owner’s name.

What Happens If You Don’t Transfer the Insurance?

If the insurance is not transferred, the new owner cannot raise a claim in case of theft, damage, or accidents. The insurer may reject the claim outright, citing mismatch in ownership details.

Moreover, the previous owner may still be held liable for any third-party claims arising out of an accident involving the bike.

Role of the Bike Insurance Calculator

A bike insurance calculator is a helpful online tool that helps you estimate the premium for your insurance policy. It takes into account details like:

Make and model of the bike
Age of the vehicle
Cubic capacity of the engine
Registration city
Type of coverage (third-party or comprehensive)

Using the calculator helps the new owner compare policies, choose the right coverage, and estimate the premium before buying or renewing the policy.

Can Add-ons Be Transferred?

Add-ons are optional benefits that enhance the policy coverage. In general insurance, these are called add-ons while in life insurance, they are referred to as riders.

Some common bike insurance add-ons include:

Zero depreciation cover
Engine protection
Roadside assistance
NCB (No Claim Bonus) protection

When transferring the policy, add-ons may not be automatically carried forward. The insurer may review the bike’s condition and the new owner’s profile before offering the same add-ons again.

Transferring bike insurance is a straightforward process, but one that should not be delayed or ignored. It is not just about complying with the law; it also ensures financial protection and smooth claim settlements for the new owner. Using tools like a bike insurance calculator can make the process easier and help in choosing the right policy. Whether you are selling or buying a bike, ensure that insurance transfer is part of your checklist.

Author Profile

Adam Regan

Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com