How you can Transfer Ownership & Insurance When Selling Your Car or truck Blog

With newer car models being launched regularly, sticking with the same car for years is uncommon. Most of you utilize your cars for 5 to 6 many then consider upgrading to a newer model. When you purchase a new car, where do you turn together with your old one?

Thanks to the interest in used cars, there is a huge marketplace for selling your old car to someone else. People buy second-hand cars when they have a restricted budget and also when they are still honing their ability to drive. So, when you're purchasing a new car, marketing your car or truck. Though the selling process continues to be simplified by the presence of online and offline car or truck dealers, there are two things that you should remember when selling your old car. What happens they are?

Selling your car or truck involves two aspects –

• Transfer of ownership from the car
• Transfer of the car insurance policy

Let' understand how you can start fulfilling each aspect of transfer –

Transfer of ownership

Transferring the ownership means changing the name of the car's owner out of your name towards the name of the buyer. To transfer the ownership of your car, certain documents could be required. These documents include the following –

• Certificate of Registration of the car
• Certificate of Taxation
• PUC Certificate.
• Declaration of selling the car.
• Copy of Existing Insurance Policy
• An affidavit addressing the change in ownership
• Address evidence of the buyer from the car

Moreover, three RTO forms would also be required that ought to be filled and signed by both you and the customer. These forms are –

• Completed Form 28: Type of No Objection Certificate.
• Completed Form 29: Type of Transfer of Ownership.
• Completed Form 30: Application for intimation or report of transfer of motor vehicle.

All the documents and RTO forms ought to be submitted using the local RTO plus a fee and also the ownership of the vehicle could be changed. The RTO, that the car continues to be registered, should be informed about the ownership transfer process. This information should be given to the RTO within Fourteen days of promoting the vehicle. Once the RTO is intimated and the transfer process is undertaken, the RTO would indemnify you of all legal, tax, traffic, criminal along with other liabilities pertaining to the car.

In case your location is not mentioned in the above list, click on the button to find the RTO offices near you.

Check The Complete Listing of RTO Offices In India

Transfer of insurance

The first aspect is fairly simple and straightforward. When you sell your old car you need to transfer the car's ownership towards the buyer. It's the second part which confuses many of you. Since insurance is considered to be a technical concept, a lot of you do not know how to transfer the insurance policy. When the policy is not transferred, you and the buyer might face legal complications in the event of any accident. So, here is a step-by-step help guide to the change in car insurance policy when selling your used car.

Step 1 – Inform the insurer and get a NCB certificate

The tactic to transfer insurance should start combined with the tactic to transfer ownership. To do this, you should first inform the insurance company regarding your aim of selling the car and also the initiation of change in ownership. Once the insurance provider knows from the change in ownership, it can benefit you using the change in insurance also. Moreover, if you have any no claim bonus for your name, you are able to retain the bonus even though you can sell the vehicle. To achieve that you need to ask the insurance company to issue you a NCB retention certificate. The certificate allows you to definitely retain your no claim bonus and use it on another car insurance for your new car. To obtain the NCB retention certificate you would need to submit the next documents to your insurance provider –

• A letter requesting policy cancellation
• Original policy document
• Certificate of insurance
• RTO Form 29 the form for change in ownership
• RTO Form 30 the form for intimation or report of transfer of motor vehicle
• Copy of the RC book containing the specific buyer
• Proof that the car was sent to the buyer

Step 2 – Transfer the policy

After you've availed the NCB retention certificate, it's time to get the policy transferred. To transfer the insurance policy you would need a set of documents that ought to be listed in the insurer. Included in this are –

• The changed and updated RC book containing the name of the new owner. When the RC book has not been updated up to now, Form 29 ought to be submitted
• The policy document
• No Objection Certificate from you
• New policy application form
• Inspection report from the vehicle which may be conducted through the insurance company
• The distinction between the particular premium and also the premium paid after factoring in no claim bonus

These two steps would get the car insurance policy transferred to the brand new buyer.

Check Out About RC Transfer Process

Points to remember when transferring insurance

When you're transferring the insurance policy, here are a few important points which you should remember –

• The buyer is mandated by law to get the insurance policy transferred in the name. However, you should also be part of the responsibility of transferring the insurance policy to avoid any legal hassles that you face.
• Transfer of the policy should be done within Fourteen days of selling the car
• For these 14 days, when the transfer is in process, the third party cover would automatically be employed in the name of the buyer. However, when the transfer isn't done within Fourteen days, the 3rd party cover would cease to operate
• If there's a claim once the insurance transfer is in process, the claim wouldn't be rejected. It might be paid after the evidence of transfer is provided towards the insurance company.

So, bear these details in your mind on how to alter the car's ownership and transfer the vehicle insurance plan within the name from the buyer when you sell your car used. If the policy is not transferred and there's any sort of accident, you might be forced to spend the money for legal liabilities if you're still mentioned because the policyholder in the policy documents. So, try to get the policy transferred within the stipulated time to avoid any hassles in future.

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