How to Transfer Bike Ownership and Insurance Online?

Posted on: Mar 13, 2023 | 3 mins | Written by: HDFC ERGO Team

How to Transfer Bike Ownership and Insurance Online?

Transferring the ownership and insurance of your bike online is now easier than ever. With a few simple steps, you can complete the process from the comfort of your home, ensuring a smooth transition to the new owner. Follow this guide to make the transfer hassle-free, secure, and fully compliant with legal requirements.

Additionally, purchasing bike insurance online for the used vehicle ensures you are covered against any potential risks and liabilities.

Transferring Bike Insurance - Why and How It’s Done?

When transferring a vehicle, its insurance must also be transferred, as it's tied to the vehicle, not the owner. This clears any liabilities for the new owner. Here are key reasons for bike insurance transfer

1. Defense Against Potential Future Liabilities

In the event that you end up causing damage to a third party or their property and a third-party claim must be filed, the insurance must be in your name. If it is not transferred, the third-party claim will be rejected, and you will be held legally responsible.

2. Earning the No-Claim Bonus Or Benefit

Suppose you do not file a claim during the stipulated policy period. In that case, the insurance provider will reward you with an NCB or No-Claim Bonus, which is primarily a discount on the premium for the following year. So when selling a vehicle make sure to inform your insurance company about the earned NCB and redeem it on the purchase of a new policy.

3. Legal Requirement for Transfer

Under Section 157 of the Motor Vehicle Act, the seller must transfer bike insurance to the buyer within 14 days. Failure to do so means the insurance won't cover losses, and the court may hold the previous owner liable for third-party damages caused by the new owner.

Note: Besides that, please keep in mind that only the third-party section of the policy is automatically transferred. This means you don't have access to coverages like Own Damage Insurance (OD) or any Add-ons (if any).

What are the Documents Required for Transferring Bike Ownership?

To begin the two-wheeler insurance transfer, specific documents are needed. While requirements vary by location, these are the papers typically required:

1. Original Registration Certificate (RC)

The Registration Certificate (RC) proves your bike’s registration with the concerned RTO (Regional Transport Office) and is crucial for ownership transfer. Ensure all details, like the owner’s name, chassis number, and engine type, match your motorbike’s specifications. For loan-financed bikes, secure a No Objection Certificate (NOC) and stamped Form 35 from the bank to confirm loan repayment.

2. Valid Insurance Certificate

An Insurance Certificate, either comprehensive or third-party bike insurance, is essential for transferring bike ownership. Under updated motor vehicle regulations, every vehicle on Indian roads must possess this certificate. Without it, you cannot register the vehicle with the RTO, so ensure you obtain it from the seller before completing the purchase. If the policy has expired, you can either renew it or purchase a new one for your bike.

3. Sale Agreement

When purchasing a used bike, obtain a sales receipt signed by the seller. This document is vital, especially when buying from a third party, as it is proof of purchase. It confirms the sale and details any add-ons or taxes paid.

4. Pollution Under Control (PUC) Certificate

A valid Pollution Under Control (PUC) certificate is crucial when buying a used motorcycle. It ensures the bike has passed its emission test, aiding in proper valuation. Check the certificate's serial number, license plate, test readings, and expiry date. The PUC must be presented when requested by authorities during routine checks.

5. Identity and Address Proof

Furthermore, the buyer must provide the following documents to finalise the bike’s ownership transfer:

• A valid proof of identity

• A valid proof of address

• Two passport-size photographs

6. Road Tax Certificate

Before purchasing a used bike, obtain the road tax certificate from the previous owner, as you'll need it at the RTO during the ownership transfer. Below are the necessary forms for submission.

• Form 28:

This form acts as a No Objection Certificate (NOC) required for transferring a vehicle between states. The seller must submit three copies of this form.

• Form 29:

Form 29 serves as a Notice of Ownership Transfer for a bike, notifying the RTO of the sale. The seller needs to submit two copies to the RTO.

• Form 30:

This form confirms the previous one and acts as a report of ownership transfer. For bike ownership transfer, two copies of Form 30 must be submitted to the RTO.

What are the Documents Required for Transferring Bike Ownership in Case of Owner's Death?

In the event of the vehicle owner's death, additional documents are required to transfer the Registration Certificate (RC) to the legal heir. These include:

• The death certificate of the vehicle owner as proof

• Original RC

• Succession certificate from a solicitor or authorised entity

• No Objection Certificate (NOC) from the loan provider if the vehicle was financed

• Completed forms 30 and 31

• Self-attested vehicle insurance certificate

• New owner's address proof

• Attested PAN card or forms 60 and 61, if applicable.

Two Wheeler Ownership Transfer Fees in India

The costs associated with transferring ownership of a two-wheeler in India depend on the state, as well as the vehicle's age and type. Typically, these fees include:

• RTO transfer fee: ₹30–₹35

• Smart card fee: ₹200

• Insurance certificate transfer fee: ₹50

• Imported bikes: Up to ₹100

Transfer Bike Insurance to a New Owner

For bike insurance transfer online, the buyer must follow these steps:

1. Apply for the insurance transfer within 14 days of purchasing the bike.

2. Select an insurance plan that meets your needs.

3. Complete the proposal form, clearly indicating the ownership transfer details.

4. Submit all required documents to the insurance provider.

5. Include Form 29/30 or the sale deed with the necessary paperwork.

6. An investigator from the insurance company will conduct an inspection and prepare a report.

7. Pay a nominal transfer fee for the insurance policy transfer.

8. Once verified, the insurance policy will be transferred to your name.

Conclusion

In conclusion, transferring bike ownership and insurance online simplifies the process significantly, allowing you to handle it from home effortlessly. Ensure compliance with legal requirements, provide necessary documents, and follow outlined steps for a smooth transition. By transferring the insurance, you safeguard against liabilities, earning potential benefits like the No-Claim Bonus while ensuring the new owner has the required coverage.

FAQs

1. What is bike insurance transfer?

Bike insurance transfer involves moving the existing insurance coverage on a motorcycle from the seller to the new owner upon sale.

2. How does bike insurance transfer work?

The seller informs their insurance provider about the sale and provides the new owner’s details, allowing the company to transfer coverage accordingly.

3. Is there a fee for a bike insurance transfer?

Some insurers may charge a fee for transferring bike insurance, while others may offer this service at no cost. Check with your provider.

4. How long does a bike insurance transfer take?

Bike insurance transfer duration varies by insurer but usually takes a few days to complete.

5. Do I need to inform my insurance company if I sell my bike?

Yes, notifying your insurance provider about the sale is essential for transferring coverage to the new owner.

6. How to transfer bike insurance in India?

To transfer bike insurance in India, contact your insurer, submit the required documents, and follow their specific procedures for online or offline transfer.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Bike Ownership Transition: A Closer Look at Transfer Charges

How to Digitally Transfer Two-Wheeler Ownership: Step by Step Guide

How to Get Two-Wheeler Insurance for a Second-Hand Bike?

All That You Need To Know About Third Party Two Wheeler Insurance Transfer

5 Simple Steps to Transfer Bike Insurance