The process of transferring car insurance works in the same way as the process of transferring a title. Once the new owner buys the car, the old owner's insurance policy is no longer valid. The Insurance Regulatory and Development Authority of India (IRDAI) says that a claim can only be made if the name and address on the registration certificate and the insurance papers match. If the insured car has been sold to someone else, it can't have the same name.
Also, a transfer of car insurance is needed so that, in the event of an accident, the new owner can get the money back for repairs. A claim can also be denied if a person doesn't have insurance on their car. To transfer a current car insurance policy from one person to another, you need to send a transfer request to the motor insurance provider. For a car insurance transfer, you need to send in the following papers along with the transfer fee:
The new copy of the form/certificate of registration 29
Old car policy papers
No Objection Clause (NOC) from the person who had the insurance before
A new application form
Report on the inspection (to be carried out by the insurance company) (to be carried out by the insurance company)
No Claims Bonus amount difference
When buying a new object, you need to plan carefully and thoroughly. A used car is still a new purchase for the person who buys it. So it is only fair that the process includes a proper transfer of rights, ownership, and protection to the new car owner. So, if you want to stay out of trouble with the law, make sure to give the car's current insurance policy to the new owner. Park+ app keeps track of your car insurance and helps you manage it easily on the go. Download the app to learn more.