Buying a used vehicle is one of the most popular sentiment these days. While some have budget constraints, others like to rough it out on used vehicles. No matter what the reason, the market for used vehicles is on the rise. Although on one hand, you do all the rigorous search and analysis to buy your car, on the other hand, there are some important and mandatory procedures which you have to follow post purchase. One of the most important procedures is the transfer of vehicle insurance under your name.
If the insurance policy is not transferred under the new owner’s name, both, the buyer and the seller could face serious consequences. Because the level of awareness is not that great, cases of post-loss insurance grievances are common. Both, the seller and the buyer share the responsibility of transferring the insurance.
Insurance transfer is a mandatory step and according to the Indian Motors Vehicle Act of 1988, it is an offence to drive a car without valid insurance.
A comprehensive motor insurance policy, like the one offered by Bharti AXA GI, has two aspects. Namely, own damage and third party damage. According to section 157 of the Motor Vehicle Act, it is the obligation of the new owner to transfer the insurance on his or her name within the first 14 days following the purchase. When the policy gets transferred, the third party aspects get transferred automatically. In case, the new owner fails to transfer the insurance within these 14 days, the insurance company is under no contract and hence is not liable to bear any losses, neither in the third party section nor in the own damage section.
The trouble emerges, if you (the new owner) gets into an accident. On one hand, the insurance company will not be liable for any losses and on the other hand, the court of law can issue a notice to the old owner, ordering him or her to pay for the damages in case a third party is involved.
Buying a vehicle and transferring the registration itself is a time consuming and an energy draining task. Insurance transfer should not add to your troubles and hence, follow the following guidelines to ensure that your insurance transfer is seamless.
Make sure the insurance is transferred within 14 days.
To facilitate proper insurance transfer, you need to fill up a fresh proposal form and submit the transfer of registration. Along with this, also submit forms 29 and 30 and previous policy copy. Submit all these documents to the insurance company..
The regional transport office (RTO) might take some time to issue the new registration certificate but as soon as it is available, kindly submit that to the insurance company. It will save you time and complexities in case you wish to claim an amount.
You are not alone if you had not thought about transferring the car insurance policy after buying a used vehicle. But this simple oversight can cause a huge financial dent in case of an accident. Bharti AXA GI always recommends you to transfer the insurance within the stipulated time frame and make the smarter choice.