Can you transfer insurance in your name after buying a pre­owned vehicle?

Can you transfer insurance in your name after buying a pre­-owned vehicle?

I have recently bought a second­ hand vehicle. The vehicle owner has insurance cover for the car. Can it be transferred on my name now that I have bought the vehicle? In India every vehicle owner mandatory needs to have a motor insurance in his name.In case of a second­ hand vehicle purchase, as per the Motor Vehicles Act you need to transfer the insurance policy within 14 days of the purchase.

For this you need to submit the proof of sale i.e.forms 29, 30 duly signed by the previous vehicle owner, the previous policy copy, the new vehicle RC issued in your name and a nominal transfer fee charged by the insurance company. If the RC copy has not been issued in your name yet, you may submit all the other documents as prescribed, and the insurance company will issue an endorsement of transfer basis.However, the transferred RC copy should be submitted at the earliest as it is an important document that the insurance company verifies while assessing claims.
The claims settlement process will be carried out only after the submission of the transferred RC copy.

My motor insurance is coming up for renewal. My dealer is insisting on changing the insurer. Would I lose my no­claim bonus if I change my insurer?

You may get the benefits of the NCB facility even if you change your insurer on renewal. For this the proof of NCB earned on your previous policy copy needs to be produced to the new insurer. This can be done by producing the renewal notice you received from the current insurer that enlists your NCB entitlement.Or else, you may produce the expiring policy copy along with a written letter from the previous insurer that certifies that you have not lodged any claims in the expiring policy. I have car insurance for the last five years but have never made any insurance claims. Can I file car insurance claim to repair dents and scratches?

Your insurance covers losses to your car due to an accident caused by external violent means. Scratches and dents that arise out of normal usage get accounted as wear and tear, and are not covered under a motor insurance policy.
Also, with every claim ­free renewal, you are entitled for a no­ claim bonus (NCB) which is a discount applicable on the premium during the insurance renewal. In your case, as you have not claimed for the past 5 years you shall be availing a discount of 50% on your motor insurance premium.

Any claim that you lodge with the insurance company would roll back this discount to 0%. It is important to note that if the amount that you need to spend towards repair of damages is lower than the amount you could end up saving during the renewal of your policy through the NCB you can earn, you could avoid making the claim. If your claims are of a negligible amount, not filing them can help you keep your NCB intact.

Leave a Reply

Your email address will not be published. Required fields are marked *