Can Car Insurance Be Transferred From One Person to Another?
Posted on March 29,2023

Car insurance is essential for those who own cars. If you have fixed your mind to sell the car, you should be responsible in transferring the ownership to the new owner. Similarly, if you are considering buying a second-hand car, it is important to enquire about the details of car insurance and transfer the policy. Read this blog further to understand how to transfer car insurance from one person to another.
While planning to purchase a second-hand car, evaluating the car‘s engine condition, steering, suspension, radiator and other crucial parts.
When buying a second-hand car, they must ensure that all documents are in order, including the transfer of four-wheeler insurance to the new owner.
As per the Department of Transportation's guidelines, the seller must make sure that the car insurance policy is transferred to the new owner's name.
Importance of Car Insurance Transfer
When an owner is selling their car, it is essential to transfer car insurance as per the terms and conditions of any insurance company.
Future Liabilities Protection
If an individual does not transfer four-wheeler insurance when buying or selling a car, it can create a lot of hassle for both parties.
For instance, the buyer of a used car would not be able to file for third-party insurance in the event of an accident and would be responsible for covering any third-party liabilities on their own in the absence of transfer.
Likewise, if one sells their car without transferring the four-wheeler insurance policy, they are liable to pay for the third-party damages caused by the new owner.
Documents Required for Policy Transfer
- Original Registration Certificate (RC) for the vehicle
- RTO receipts for Forms 28, 29 and 30 signed by both the buyer and seller
- A Certificate of No Objection from the former owner
- Proof of the buyer's address
- Passport-sized photos of the buyer and seller
- Previous and active insurance policy documents
Steps to Transfer a Car Insurance Policy to a New Owner
1st STEP- Ensure all the necessary documents for transferring four-wheeler insurance.
2nd STEP - After completing the ownership transfer, apply for the transfer of four-wheeler insurance policy within the specified tenure.
3rd STEP - Choose your comprehensive car insurance plan and any optional add-ons.
4th STEP - Provide all necessary documents, such as forms 29, 30 and the deed of sale, to begin the transfer process.
5th STEP - Insurance company will send a surveyor to check the car.
6th STEP - After the evaluation is complete, the four-wheeler insurance will be transferred to the new owner.
Now that you are aware of the car insurance transfer, let's understand how Shriram Car Insurance can be easily renewed online in simple steps.
How to Renew Shriram Car Insurance Online?
With Shriram General Insurance, online car insurance renewal is quick and hassle-free. One can renew their car insurance policy in 3 simple steps without the paperwork.
Step 1: Enter the existing policy number and check the provided basic details of the car with RC to estimate the premium
Details of Car Manufacturer and Model
Registration Number
Year of Manufacture
Insured Name and Address
Previous Insurance Policy Details
Step 2: Select the policy that fits your requirements along with the necessary add-ons to protect the car
Step 3: Complete the online payment and renew the car insurance policy
Kindly complete the online payment by selecting the preferred payment method (Debit Card, Credit Card, Net Banking) on the go and get your Shriram Car Insurance renewed.
In a Nutshell
Ensure that the existing policy holder transfers the four-wheeler insurance coverage to the new owner within 14 days (about 2 weeks) as mandated by Section 157 of the Motor Vehicle Act. An individual who fails to do so will face liabilities, which means that the insurance provider is not obligated to provide any compensation to the new owner in the event of any losses.
Key Highlights
- It is the seller's responsibility to make sure that the car insurance policy is transferred to the new owner's name.
- If an individual does not transfer four-wheeler insurance when buying or selling a car, it can cause major issues for both parties.
- The buyer of a used car would not be able to file for third-party insurance in the event of an accident and would be responsible for covering any third-party liabilities on their own if the ownership has not been transferred.
- The third-party insurance policy is automatically transferred to the new owner upon transfer of ownership.
FAQ’s
Can third-party insurance be transferred?
Yes, it is automatically transferred to the new owner upon transfer of ownership.
Can I transfer car ownership online?
No, the new owner must visit the relevant Regional Transport Office and submit all the necessary documents to start the process of transferring ownership.
Can I transfer the NCB benefit to the buyer?
No, it is not possible to transfer the No Claims Bonus (NCB) to the new owner. However, the seller can make use of the NCB when purchasing an insurance policy for a new car.
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