How to Transfer Bike Insurance to New Owner?
12 Sep 2017
Gone are the good old days of the barter system of yore, an age where once an object or commodity leaves your hands, you no longer have to worry about it in the least. In other words, the barter system allowed for the transfer of complete ownership of a commodity as soon as it left the hands of the original owner and grazed the skin of the new owner.
However, in today’s world, where the economic system has changed drastically since the era of the barter system, the transfer of ownership of a commodity, such as a bike, is much more intricate and complex in nature. One of the reasons for the intricacy and the complexity of this procedure is, you guessed it, insurance! Without transferring your two-wheeler insurance to the new owner on sealing the deal for a sale, you might actually run into a series of sticky hassles. At the same time, you might also be missing out on some amazing benefits by not transferring your bike insurance to the new owner. Let’s take a look at the subtleties of the same:
Bike Insurance Transfer 101
The procedure of transfer can be completely by following these steps:
- Approach and inform the insurance company about the transfer and avail the No Claim Bonuses which have accumulated on your two-wheeler insurance policy till date. This will allow you to use the bonuses for availing premium discounts on the fresh insurance policy that you purchase.Inform and preferably help the potential owner in approaching the insurance company and registering themselves with the existing insurance policy under which the bike is covered.
- Inform and document the transfer of ownership of the vehicle with the RTO in your city. You need to have some important documents when doing so, the lack of which can prompt some unnecessary detours.
Why transfer bike insurance in the first place?
Selling a vehicle like a bike to an individual does not merely involve exchange of legal ownership between the two parties. Here are the intricacies that you need to consider:
Haunted by the ghost of legal ties:
One of the seminal elements that define the exchange of legal ownership is the transferring of all the responsibilities that come with the vehicle. In case the insurance policy is not transferred to the new owner, a large chunk of the responsibilities that come with it still remain in the name of the original owner. In simpler words, when the insurance policy on a bike is not transferred to the new owner, the original owner might have to pay for damages caused by the new owner irrespective of the fact that the circumstances and the implications surrounding the damages are not in control of the original owner.
Missing out on the fruits of restraint:
A good reason for transferring bike insurance to the new owner is to avail the opportunity to claim premium discounts accessible through the No Claim Bonuses that resulted from the usage of the bike. The No Claim Bonuses that can be claimed through safe driving and restraint in filing unnecessary claims rightfully belongs to the original owner, because it is him who has exercised restraint and safety. The procedure of transferring two-wheeler insurance will enable you to gain complete advantage of the No Claim Bonuses accumulated in the original insurance policy, so why miss out on the same?