Importance of Transferring Bike Insurance Policy for Second Hand Bike
Buying a second-hand bike is a common practice for individuals who want an easy mode of conveyance without burning a hole in their pocket. The market for used bikes has grown quite prominently in recent times with more and more individuals opting to buy a second-hand bike. While buying second-hand bikes is easy and cheap, have you wondered about the transfer of insurance policy on the bike?
A bike insurance policy is mandatory. When you buy a new bike, you also buy a new bike insurance policy on it. But when you buy a second-hand bike, you have to get the existing insurance policy transferred to your name. Many of you are unaware of this transfer of bike insurance policy for a second-hand bike and so don’t get the policy transferred. This is a mistake. Transferring the bike insurance policy is necessary because of the following reasons –
1. When you buy a second-hand bike in your name, you need an insurance policy on the bike too. The seller must already have a policy on the bike which you need to get transferred in your name so that you can continue the existing coverage
2. If the policy is not transferred and you face any accidents which cause third-party damages, you might face legal issues
3. Even if the bike suffers damages, no claim amount would be paid by the insurance company if the policy has not been transferred and you don’t have a cover on the bike
4. You cannot even buy a new bike insurance policy if the previous policy has not been canceled by the seller of the bike.
Because of these reasons, whenever you buy a second-hand bike, you should get the existing bike insurance policy transferred to your name. If you don’t know the transfer process, here is a helping guide –
Step 1 – After you have purchased a second-hand bike, you should apply to get the ownership changed in the RC book. To get the name changed in the RC book you have to apply to your regional RTO and submit Forms 28, 29 and 30 which should be signed by the seller.
Step 2 – After making an application with the RTO, you should apply to the insurance company to get the name changed in the policy. This application should be made within 14 days of buying the second-hand bike.
Step 3 – While making an application to the insurance company, you would have to fill up a fresh proposal form for the policy and submit some documents. These documents include the following –
o The previous policy copy
o The new RC book issued by RTO with your name as the owner of the bike
o Transfer fee
When these steps are followed, the RC book would be updated with your name and the insurance policy would also be transferred in your name. The accumulated No Claim Bonus would remain with the seller who can use the bonus on a new policy for a new bike.
Even if you are selling your bike, don’t forget to transfer the bike insurance policy. Though the transfer of the policy is mainly the duty of the buyer, you might face legal liabilities in case of third-party claims and would not be able to avail accumulated any claim bonus on the sold bike if the transfer is not completed. Thus, getting the policy transferred should feature in your priority as well.
You can opt for online two wheeler insurance once the existing policy expires. You can check online two wheeler insurance plans easily and purchase the chosen plan quickly and conveniently.