Car Insurance


Are you contemplating selling your old car to buy a new one? If so, your responsibility doesn’t end with finding the right buyer. One crucial aspect of selling your vehicle is the car insurance transfer to the new owner.

The liability part of an automobile insurance policy gets directly transferred into the name of the new owner. But the new buyer has to initiate the process of transferring the own damage cover of acomprehen sive insurance policy. Jump into this article to discover all the details about transferring a vehicle insurance policy in the name of the new owner.

Importance of Vehicle Insurance Transfer

Before understanding how to transfer insurance of car, it’s imperative for you to understand why you should do it. The new owner of the vehicle should opt for transferring the insurance policy to avoid future liabilities. If the new owner hasn’t transferred the insurance in their name, they won’t be able to raise a third-party claim.

If thecar insurancetransfer is not successful, the old owner might still be liable for paying third-party accidental liabilities. Since the old owner is still the policyholder of the insurance, they are required to pay for the third-party cover.

The Process of Car Insurance Transfer

While understandinghow to transfer car insurance, you should know that the process goes in hand with the transfer of ownership of the four-wheeler. Once the vehicle is bought by a new owner, the policy of the old owner no longer remains valid. It happens because the name and address on the car registration certificate should match with that of the insurance documents to successfully raise a claim.

If you are trying to explore how to transfer car insurance, you must contact the insurance provider to raise a transfer request. You will have to bear a fee for transferring the car insurance policy in the name of the new owner. Apart from that, the following documents are necessary for car insurance transfer:

  • Form 29 or a copy of the new registration certificate
  • Documents of the old car insurance policy
  • No Objection Clause from the last policyholder
  • A detailed inspection report provided by the car insurance company
  • New application form
  • No claim bonus difference amount

What Happens to the No Claim Bonus During Car Insurance Transfer?

While opting for acar insurance transfer, several people wonder what will happen to the no-claim bonus. You should know that the no-claim bonus cannot be transferred to the new policyholder. The existing policyholder can get the NCB amount and use it during their new car purchase.

Thecar insuranceprovider will ask the existing policyholder to submit an NCB retention letter. The documents required to submit an NCB retention letter are as follows:

  • Request letter for car insurance policy cancellation
  • Form 51 or an original copy of the insurance policy certificate
  • Form 30 (application for car ownership transfer)
  • Form 29 (car ownership transfer notice)
  • Copy of the registration certificate, including the name of the new owner
  • Proof of delivery of the car to the new owner

Who is responsible for initiating the car insurance transfer process?

The car insurance online transfer process should be initiated by the individual selling the vehicle. It means that the existing policyholder should transfer the policy in the name of the new owner. The process of car insurance transfer must be completed within 14 days of selling the car.

During the first 14 days, the third-party damage cover gets automatically transferred and remains active. But the own damage cover becomes active only when thecar insurance policy is successfully transferred from the old to the new owner. If the insurance transfer is not complete within the first 14 days, the policy will become inactive from the 15th day.

Ending Note

If you are purchasing a used four-wheeler, you don’t have to buy new car insurance online. Instead, you can transfer the existing policy in your name. Remember that transferring the car insuranceto the name of the new owner is crucial for avoiding legal issues.


1. Is it possible to transfer car insurance online?

You can easily transfer your car insurance online. You can proceed to the authentic website of the policyholder and initiate the process of car insurance transfer. Remember to scan and submit all the required documents for the successful transfer of thecar insurance policy.

2. What is the right format for drafting a comprehensive insurance transfer letter?

You should address thecomprehensive insurance transfer letter to the insurance policy provider. You can also download the form for executing car insurance policy transfers from the official website of the insurer.

3. Can I transfer third-party car insurance online?

The third-partycar insurance online can be transferred within 14 days of selling the vehicle.

4. Can I transfer the vehicle registration certificate without transferring the insurance?

You cannot transfer the registration certificate of your car without transferring the insurance policy. You will have to submit the vehicle insurance documents to the RTO for a successful registration certificate transfer.

5. What is the duration to transfer the RC of a car?

The time required to transfer the RC of a car can vary between 20 to 60 days, depending on the situation.

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