You must also transfer insurance when buying and selling a second-hand vehicle. The consequences for failing to transfer ownership to the new owner are severe.
After doing a lot research, you have decided to purchase a used vehicle. This is a great choice for middle-class buyers. Buyer and seller must be familiar with the terms and conditions of the policy. A claim can be filed by a new owner for used car insurance policies that are not transferred to his name. This is because there is no legal agreement between the new owner of the insurance company and the claimant.
Consider these steps when purchasing a second-hand auto insurance policy
Online used car sales have increased dramatically. There are many online pre-owned car showrooms and portals that offer the best financing for used cars. All these advantages make it attractive to purchase used cars online.
Online Car Insurance for used cars is available from our website. Different car insurance companies offer discounts up to 60% on used cars insurance. The insurance must be purchased in the person’s name as indicated in the RC copy. This means that the insurable interests must be maintained at the time the claim is made to prevent rejection due to insurable interest.
Transfer of registration certificate
Submit Form 29 and 30 to your RTO (Road Transport Authority). The previous and the new owners should sign the forms. You can also obtain NOC (No Objection Certificate), from the previous owner. This will speed up the registration process.
Transfer insurance policy
Your right to seek damages is null if your RC is transferred but your used car insurance has not yet been transferred.
There are many reasons to get insurance
To change the name of the previous owner of the policy, transfer the car insurance plan to your name. The insurance companies can assist you online to make this process easier.
According to Sec.157 Motor Insurance Policy, used car insurance policies should be transferred within 14-days of purchase. Third party insurance covers the vehicle if it is involved in an accident within 14 days.
No-Claim Transfer Bonus
The policy-holder does not receive a claim bonus. However, the policy-holder’s possession does not automatically mean that the NCB will be transferred. If the owner purchases a new vehicle, the NCB discount may be applied to him. The difference in discount must be paid by the new owner.
Car insurance for used cars can be obtained in the same way as new cars, but you will need to take care of the changing of the name process by providing the proper documentation. Your vehicle will benefit if you follow the proper procedures for transferring your policy document. We recommend that you transfer the policy within a specified time frame and file a claim for damages.