A Comprehensive Guide To Updating Your Two-Wheeler Insurance: Name Change Edition

In India, two-wheeler insurance is mandatory for all vehicles. The process of changing the name on a two-wheeler insurance policy is simple and easy. When buying a used or second-hand bike, it is crucial to inspect the vehicle and transfer ownership from the seller. This involves a specific process, and there are essential tips to follow for a smooth transfer. It is also important to note that the insurance policy should be transferred to the new owner to ensure financial coverage in case of any accidents. The process includes submitting the necessary documents, such as Forms 28, 29, and 30, to the Regional Transport Office (RTO), along with the required fees and other relevant documents.

Changing the name during the renewal period

Changing the name on your two-wheeler insurance during the renewal period is a straightforward process. Here are the steps you need to follow:

Step 1: Visit the Regional Transport Office (RTO)

Go to the same RTO office where your bike was initially registered. This is where you will complete the necessary paperwork and submit the required documents.

Step 2: Gather the Required Documents

You will need to submit several documents to the RTO, including:

• Forms 29 and 30: These forms are used to inform the RTO about the sale and purchase of the bike. Make sure to have two copies of each form.
• Registration Certificate (RC): This document serves as proof of registration for your bike.
• Two-wheeler insurance documents: Ensure you have the necessary insurance documents for your bike.
• Emission test papers: Submit the results of the emission test for your bike.
• Passport-size photographs: Provide your passport-size photos as per the RTO's requirements.
• Address proof: Submit valid proof of your current address.

Step 3: Submit the Documents to the RTO

Once you have all the required documents, submit them to the RTO. The officials will verify the documents and initiate the process of transferring the insurance to the new owner's name.

Step 4: Wait for Verification and Transfer

After submitting the documents, the RTO will verify their authenticity and ensure that all necessary information is provided. If everything is in order, they will approve the transfer of the two-wheeler insurance to the new owner's name.

Step 5: Inform Your Insurance Company

It is important to keep your insurance company updated about the transfer of ownership. Contact them and provide them with the new owner's details. This ensures that the insurance policy remains valid and can be utilised by the new owner in case of any future incidents.

Additional Considerations:

• Timely Transfer: If the buyer lives in the same state as you, ensure that the ownership transfer is completed within two weeks (14 days). If the buyer resides in a different state, inform the regulating authority within 45 days.
• Death of the Owner: In the unfortunate event that the owner passes away during the transfer process, the heir or successor must inform the authorities within 30 days and submit the necessary documents, including the death certificate.
• No-Claim Bonus (NCB): Remember that the NCB is tied to the owner and not the vehicle. As a buyer, you cannot take advantage of the previous owner's NCB. However, as a seller, you can transfer your NCB to a new policy with a different insurer.

Changing the name during the policy term

Changing the name on your two-wheeler insurance policy during the policy term is possible, but it is not recommended. If you are not satisfied with your current policy, you can cancel it by giving prior warning to your insurance company. Most companies require a 7-day prior notice if you want to cancel your policy. During these 7 days, you can look for a new insurance provider. Your premium amount will also be refunded.

It is important to note that a policy cannot be cancelled if a claim has been made in the same period. Once all your documents are processed, the premium amount will be refunded to you. Make sure that your previous policy is cancelled and your new policy is activated before riding your bike.

If you are changing your insurance policy because of expensive premiums, compare the current policy with the new one. Consider the benefits offered and whether the savings are worth the change. Analyse other factors of the policy, such as efficient customer service and the claim settlement ratio.

To change the name on your two-wheeler insurance policy during the policy term, follow these steps:

• Contact your current insurance company and inform them of your decision to cancel your policy.
• Download and fill out Form 28, 29 and 30 from the respective Regional Transport Office (RTO)'s website or office.
• Submit the forms to the RTO, along with any relevant documents, such as the Registration Certificate (RC), two-wheeler insurance documents, emission test papers, and your passport-size photo.
• Obtain a Clearance Certificate from the RTO for the submitted forms and proof of the sale.
• Submit all the relevant documents, including the Clearance Certificate, to the new insurance company.
• Pay the required fee, if any.
• Receive the new policy bearing your name via email or courier.

Remember to transfer your bike insurance to the new owner when selling your bike. This is important as the insurance company will provide financial coverage for damages caused to the insured vehicle in the event of an accident.

Transferring the insurance to a new vehicle

When buying a new vehicle, it is important to get it insured before driving it. In India, it is mandatory for all vehicles on the road to have a valid third-party insurance cover. While you can cancel your existing policy and start a new one, you can also transfer your insurance to your new vehicle. This saves you time and potentially money. Here is a step-by-step guide to help you with the process:

Step 1: Contact your insurance provider

Get in touch with your insurance company and request an updated quote for your new vehicle. You can do this online or over a call.

Step 2: Understand your insurance needs

Unless your new vehicle is the same make and model as your old one, your insurance needs will likely change. If your new vehicle is more valuable, you will need a higher level of coverage. Consider opting for comprehensive insurance.

Step 3: Assess your options

If you receive a quote you cannot afford, shop around for quotes from other insurance providers. You may be able to get a better deal.

Step 4: Initiate the transfer

Provide your insurance agent with information about your new vehicle, including the manufacturer and model year. Request a copy of the new policy for your records.

Step 5: Submit the required documents

You will need to submit several documents to complete the transfer, including:

• Registration Certificate
• No Objection Certificate (NOC) from the previous owner
• Address proof of the new owner
• Passport-size photographs of the new owner
• Old and active insurance policy document
• Inspection report of the vehicle by the insurance company

Step 6: Pay the required fee

You may need to pay a transfer fee to finalise the process.

Step 7: Receive the new policy

Once the transfer is complete, you will receive the new insurance policy bearing your name via email or courier.

Switching from an annual to a long-term policy

Switching from an annual to a long-term two-wheeler insurance policy can be done at any time, but it is best to do so at the time of renewal to avoid cancellation fees.

There are several benefits to switching to a long-term policy, including:

• Avoiding the hassle of yearly renewals
• Protection for long-term
• Easy cancellation of the policy
• Avoiding the effect of price hikes
• No need to compromise on your No Claim Bonus (NCB)

There are also some considerations to keep in mind when switching to a long-term policy:

• The duration of ownership: If you plan to sell your bike within three years, a long-term policy may not be the best option.
• The service of the insurer: Given that you will be locked in with the insurance company for a long time, it is important to consider the legitimacy of the insurance and the quality of their service.
• The add-ons included in the policy: As add-ons can increase the price of the policy, it is important to select only those that are applicable to you over the course of the policy.

To switch from an annual to a long-term two-wheeler insurance policy, follow these steps:

• Research different insurance providers and compare their policy coverage, features, benefits, exclusion, premium amount, claim settlement ratio, after-sales service, and customer feedback.
• Contact the new insurance provider and purchase the new policy.
• Contact your current insurance provider and request a cancellation of your existing policy. You may need to provide a notice period, usually of seven days. You will also need to provide proof of the new policy.
• Once the cancellation has been processed, you will receive a refund of the premium amount, minus any deductions as per the IRDAI guidelines.

Documents required for transferring two-wheeler ownership

When buying a second-hand or used two-wheeler in India, it is important to inspect the vehicle and transfer ownership from the seller. This involves a specific process and the submission of several documents. Here is a list of the documents required for transferring two-wheeler ownership:

• Registration Certificate (RC) for the bike.
• Pollution Under Control (PUC) Certificate.
• Form 28, which is a No-Objection Certificate (NOC) from the seller. Three copies of this form should be submitted to the Regional Transport Office (RTO).
• Form 29, which states the selling and buying of the bike by both parties. Two copies of this form should be submitted to the RTO.
• Form 30, which is the report or intimation of transfer of ownership. The buyer needs to submit two copies of this form to the RTO.
• Chassis and Engine Pencil Print.
• Proof of Date of Birth of the buyer.
• Passport-size photographs of the buyer.
• Tax clearance certificate.
• A No-Objection Certificate (NOC) granted by the registering authority.
• Proof of address of the seller.
• Valid bike insurance policy.
• Receipts of road tax paid on the bike.
• Passport-sized photographs of the seller.
• No-Objection Certificate (NOC) from the lender, if the bike was bought with a loan that has not been fully repaid.

In the case of the death of the owner of the two-wheeler, the following additional documents are required:

• Form 30, with the chassis print affixed.
• Form TCA and TCR for transport vehicles.
• Death Certificate (DC) of the two-wheeler owner.
• Affidavit from the successor, succession certificate, and NOC from the bank or financer (if applicable).
• All valid documents of the vehicle, along with the registration fee as per Rule 81 of the Central Motor Vehicles Rules 1989.

The process of transferring two-wheeler ownership involves submitting the relevant forms and documents to the RTO and paying the applicable fees, which may vary depending on the state and the type of transfer. The ownership transfer should be completed within 14 days if the buyer and seller reside in the same state, and within 45 days if they reside in different states.

Frequently asked questions