Planning to sell your bike and not sure what to do with the insurance? Here is an easy stepwise guide to transferring two-wheeler insurance while selling the bike.
It is essential for you to transfer the policy when you sell an old two-wheeler vehicle. When it comes to transferring two-wheeler insurances, many questions and queries arise. This guide intends to solve most of them. To begin with, let’s look at the components of your insurance policy.
Insurance Components
Every two-wheeler policy has two types of components. They are as follows:
- Benefits/coverages for the individual – Two-wheeler insurances cover the policyholder. Offers such as the No Claim Bonus (NCB) and discounts on the insurances are done keeping in mind the policyholder and their loyalty towards the insurance and premium. Therefore, when they transfer the two-wheeler policy to the new owner, they will continue to stand eligible for the NCB and other perks for their next two-wheeler purchase, if done within a stipulated time.
- Reimbursements/claims for the two-wheeler vehicles – This includes claims you will receive for your vehicle or the components of your premium associated with the condition of your vehicle. Factors such as the IDV, bumper-to-bumper cover, etc. all are factored as a part of the two-wheeler insurance premium amount. The amount will change when the vehicle changes, after which a policy transfer will be required.
A Stepwise Guide to Transferring Insurance
- Inform the insurer about the purchase. It is mandatory to notify the insurer so they can proceed with the transfer process as soon as possible.
- Get the NCB certificate if you haven’t made any claims on your vehicle previously. This certificate can be availed after transferring your policy. Your previous records of no claim can be carried on to your new policy.
- After you purchase the new bike, you must take the new vehicle along with your RC book, documents of your vehicle, registration documents, etc. to your insurer. Your premium rates for the new vehicle will indeed differ from the older one because of the new condition, the presence of any anti-theft devices, etc.
- Your previous buyer of the old vehicle would also have to get their policy recorded in the existing plan of the vehicle.
- Inform the RTO about the change of vehicle by providing the necessary documents.
- Your process is completed.
To conclude, you have to be careful with every document and have them changed as soon as you have the new two-wheeler vehicle in your possession. Complete all the transfer of paper formalities before you take it for a ride. It is advisable to speak to your two-wheeler insurance executive or broker to get better clarity on the finer nuances of transfer of documents.