Before buying a second hand car, think of many ways. However, some people do not prefer to take out a motor insurance policy. Failure to transfer the motor insurance policy in your name will result in financial loss as well as legal issues.
The new owner will not be entitled to claim in the event of any accident or loss. Many car buyers, due to a lack of proper understanding, their claims are rejected. Therefore the policy should be transferred to the name of the owner of the vehicle within the stipulated time of purchase of the vehicle.
Neglect in this matter is useless. Under Section 157 of the Motor Vehicles Act, when one person buys a used car, the new owner of the vehicle must transfer the policy in his name.
May be problematic for old owner
If a third party loses due to an accident caused by the person (new owner) who bought the vehicle, the old owner may receive notices from the court to pay the damages. Therefore both buyers and sellers are obliged to transfer the vehicle insurance policy without any legal hassle.
How To Transfer A Car Insurance Policy ..
* After purchasing a second hand car, the car insurance policy should be transferred from the old owner’s name to the new owner’s name within 14 days of purchase.
* In addition to the new proposal form for transferring the policy, RC transfer, Form 29, 30 signed by the old owner, fees to be paid for the transfer, copy of the previous policy etc. should be submitted as the car was sold. After giving the above to the insurance company, the insurance company approves the transfer.
* A new copy of the RC issued by the RTO must be submitted to the insurance company without any difficulty at the time of claim.
* If the name change is not shown in the RC copy even though the insurance is transferred in the name of the new owner .. RC Transfer Proof should be given to the insurance company at the time of claim.
* If the RC is required to make a claim as the transfer process continues, such claims will also not be rejected. However, the guarantee amount will be paid only after giving evidence that the RC has been transferred.