Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums! Quote:
Originally Posted by null I have sold my car now. I understand that the car need to be registered in the new party's name & only then we can apply for insurance transfer along with a request for NCB Retention Letter.
Queries:
1. Is it possible to ask for NCB retention letter without waiting for registration transfer complete (takes 2-3 weeks+ I hear) using the delivery note signed by the buyer? Can he apply for insurance transfer separately later?
2. What happens if the insurance expires in the meanwhile during transfer period? - i.e., RTO formalities get over only by end of October, but insurance expires in the middle of October. What happens to the NCB Retention letter?
Another query:
What insurance do we have when we are driving a car on temporary registration plates? None I believe. Right? |
Sir,
Insurance transfer can be applied even before the RC transfer has happened as mentioned by another user above, with the help of a letter from you, copies of Form 29 and Form 30. And if the application has been made at the RTO office, the receipt also works as a valid proof. Check with your insurance provider on what documents they consider as valid.
Replies to your queries:
1. If the insurance transfer has been applied for, the NCB retention letter can be asked for. Even if the RC transfer at the RTO is pending or in progress.
2. IMHO, If the insurance is valid the day the application was made at the RTO, the RTO will proceed and register the car in the new owner's name. While the registration happens and the RC card is received, it is the sole responsibility of the new owner to renew the insurance if it is expiring. But, once you have sold the car and signed Form 29 and 30, you cannot be sure on when the next owner will present it for Registration. The party may go for registration at a date after which the current policy expired. In which case, the liability might come to the seller of the car as the car is in his name at the moment. So, a mutual agreement about the current policy period and renewal is advised between the seller and the buyer of the car at the time of the sale. A little foresight goes on to build a great relationship later on.
Driving a car on the temporary registration does not mean it cannot have insurance. It is an absolute must for any car going out of the showroom to have a valid insurance. In some cities like Hyderabad, you normally bring out the car on Temporary number plate and get it registered later(within 30 days without fine). At this time, the insurance is covered on the basis of the Chassis no and Engine no of the car. The onus is on the buyer to update the insurance provider about the permanent registration no. once it arrives. Whereas, in certain cities, you cannot get a car delivered unless the registration has already happened and the number put-up on the car.
Last edited by kalyan_hyd : 30th September 2015 at 11:58.
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