A lot of people prefer to buy a second-hand vehicle to polish their driving skills before going for a brand new one. If you too are looking forward to buying a second-hand vehicle or sell yours, there are certain points regarding its insurance that you should be aware of, both as a buyer and as a seller.
In-case of a change in ownership of a vehicle, motor insurance ownership too needs to be transferred to the new owner of the vehicle. To do so, you need to collect all the insurance policy related documents and intimate the insurer about the same. You change car insurance before renewal date to avoid any hassles.
Or alternatively, you can seek the help of your agent for this transfer. All you need to do is to arrange all the policy related documents, request form and vehicle RC and hand it over to the insurance company, either directly or through your agent.
There is a 14 days period within which the new buyer has to apply for the changes. If he fails to do so within the given time, the policy may cease and he might not get any refund or discount.
There is another point that a seller should consider- If the seller has not claimed insurance in the past then he can retain the No Claim Bonus (NCB). A certificate will be issued by the insurance company which can be utilized on buying a new vehicle. This certificate is valid for 3 years.
Not transferring the policy of the vehicle will restrain the new owner from claiming the vehicle insurance in future. Also, if the vehicle is involved in any legal trouble in the later years, the person registered as the owner would be held liable. So, transferring the insurance is favorable for both the parties.
Transferring the insurance policy is very easy if you have all the valid documents (RC with changed name in it, Insurance Policy Document, ID and Address Proof) and the same applies while buying a second-hand vehicle.
In case the purchased vehicle is not insured, do not hesitate to compare vehicle insurance online to get the best quotes.