[sansvk]

I sold my car through a dealership and the 2nd owner has got hold of my phone number. The new owner now wants my Aadhar and PAN to transfer the insurance to his name. The RC change is in progress at the RTO. I insisted that once the RC change is completed, that is the only document needed for insurance endorsement. Is my understanding correct?

[KK_HakunaMatata]

Originally Posted by sansvk

I sold my car through a dealership and the 2nd owner has got hold of my phone number. The new owner now wants my Aadhar and PAN to transfer the insurance to his name. The RC change is in progress at the RTO. I insisted that once the RC change is completed, that is the only document needed for insurance endorsement. Is my understanding correct?

Yes absolutely. I have bought and sold multiple used cars and nothing else is required, once transfer is done and RC card is available, new owner shall submit the same online/ offline to the insurance company and get the name changed on the insurance, albeit after paying any tranfer fees or the NCB the earlier owner had claimed.

KK

[alpha1]

Originally Posted by sansvk

I sold my car through a dealership and the 2nd owner has got hold of my phone number. The new owner now wants my Aadhar and PAN to transfer the insurance to his name. The RC change is in progress at the RTO. I insisted that once the RC change is completed, that is the only document needed for insurance endorsement. Is my understanding correct?

I am in same boat as your car buyer / 2nd owner. I have the new RC on my name. However, the insurance companies are asking buttload of 1st owner's documents for transferring the insurance (PAN, Aadhar, Sales Deed, No objection certificate etc).
I made it clear that I have the new RC so legally the vehicle is mine. Their response: as per our company policy we require all these documents!

[alpha1]

Originally Posted by alpha1

I am in same boat as your car buyer / 2nd owner. I have the new RC on my name. However, the insurance companies are asking buttload of 1st owner's documents for transferring the insurance (PAN, Aadhar, Sales Deed, No objection certificate etc).
I made it clear that I have the new RC so legally the vehicle is mine. Their response: as per our company policy we require all these documents!

@Thread, the Situation remains the same as earlier. Anyone having any experience in dealing with these vehicle insurance folks?
The vehicle is registered in my name, bought from a dealer, but the car insurance company states the following as a requirement to transfer insurance to me:

• Consent letter is missing / unclear

Any clues how this matter can be resolved?

[saket77]

Originally Posted by alpha1

@Thread, the Situation remains the same as earlier. Anyone having any experience in dealing with these vehicle insurance folks?
The vehicle is registered in my name, bought from a dealer, but the car insurance company states the following as a requirement to transfer insurance to me:

• Consent letter is missing / unclear

Any clues how this matter can be resolved?

Is the insurance policy not up for renewal anytime soon? Asking this because since you have the new RC, you can always go for a new insurance policy by yourself.

[camaroon]

I recently transferred the RC to my family member to get NCB certificate for a new purchase and I got to experience the process on both sides. Once the RC was transferred, I got the revised RC from Digilocker and initiated process to transfer the insurance from my side looping in the family member with their contact details. My family member was sent a link to pay Rs60 for the transfer of insurance and upload their KYC details online. Once this was done the insurance was transferred and I got my NCB certificate in around 3 days. There was only 2 weeks left for the insurance to expire. This required multiple emails and calls though.

[Dry Ice]

Originally Posted by alpha1

@Thread, the Situation remains the same as earlier. Anyone having any experience in dealing with these vehicle insurance folks?
The vehicle is registered in my name, bought from a dealer, but the car insurance company states the following as a requirement to transfer insurance to me:

• Consent letter is missing / unclear

Any clues how this matter can be resolved?

What if you approach any of the new digital insurers like Acko or Digit for a new policy? Old policy with the previous owner’s name is technically invalid now since the car is on your name?

I have transferred insurance twice in the last few years (as a seller). Both times, Acko asked for the buyer’s id, new RC, difference of premium and issued the new policy for the buyer and NCB certificate for me in a matter of hours.

[dearchichi]

Hello.

Could the members please help me out with answers to the below questions regarding transfer of auto insurance to the new owner upon sale of a car?

I have recently sold my car. The RC has been transferred to the new owner's name (19th April), but the insurance (from Royal Sundaram) for the car still lies in my name.

1. There are two part to auto insurance: own damage and third-party liability. NCB only applies to the former, is only applicable to the name of the insured and could be transferred to a new policy if taken against a car with similar cubic capacity. The transfer of NCB to a new policy is facilitated by a NCB certificate that a vendor issues upon request when the original policy is terminated for some reason (transfer of the policy to the new owner, for example). The NCB is accounted for in percentages of the own-damage premium and not in absolute value (i.e., a 50% NCB can account for Rs. 1000 against the original policy if the own-damage premium was Rs. 2000, but for Rs. 2000 against a new one with an own-damage premium of Rs. 4000). Is my understanding correct?

2. Upon initiation of the transfer of the insurance policy from the original owner to the new owner following the sale of a car, would both the own damage and third-party liability sections of the policy be transferred? If so, the vendor needs to only be paid the transfer fees and the NCB discount that applied to the original owner. Why then should be the car be re-inspected as some vendors require? Would the premium change in any way, and if so, which of the owners (original or new) would need to pay the difference in these premiums?

3. Royal Sundaram, the vendor of the current insurance policy under my name, has sent across a proposal form for the new owner to fill and send across. It asks for the following, among other things:

- Date of Registration (should this be the date that the vehicle was originally registered, or the date when the RC transfer occurred?)
- Date of transfer (when the RC transfer occurred?)

4. What is the consensus on the vehicle being covered while the RC is in the new owner's name and the insurance in that of the original one? Would the original owner be liable in any manner in case of an accident?

5. If the new owner chooses to go for a fresh policy, can the original owner terminate the existing policy? Will the premium applicable to the pending validity period be refunded?

Originally Posted by condor

At that point, the car is without insurance. When the current owner tries to take a new policy, he has to submit the RC to the insurance company. And new insurance policy will be in the name of the person mentioned on the RC card.

So, if the RC transfer has happened, then the new policy will be on the new owner's name. Ref the point in my prev post here.

What if the new owner continually renews the policy that was in the name of the original owner without ever transferring it? Can this happen?

Originally Posted by Dry Ice

I have transferred insurance twice in the last few years (as a seller). Both times, Acko asked for the buyer’s id, new RC, difference of premium and issued the new policy for the buyer and NCB certificate for me in a matter of hours.

I called Acko to check if they can transfer the policy from Royal Sundaram to themselves against the new owner, but was informed that this isn't possible since such only Royal Sundaram can perform the transfer. Acko can only issue a new policy.

Is this incorrect (as it appears going by your statement above)?

Thank you.

[condor]

Partial answers:

Originally Posted by dearchichi

- Date of Registration (should this be the date that the vehicle was originally registered, or the date when the RC transfer occurred?)
- Date of transfer (when the RC transfer occurred?)

IMO - date of registration, not transfer.

4. What is the consensus on the vehicle being covered while the RC is in the new owner's name and the insurance in that of the original one? Would the original owner be liable in any manner in case of an accident?

RC transfer is one part, and a pre-requisite for transfer of insurance. It is possible, and many continue with existing insurance coverage without transferring the policy.

From what I have read, the liability will be on the policy holder.

5. If the new owner chooses to go for a fresh policy, can the original owner terminate the existing policy? Will the premium applicable to the pending validity period be refunded?

I dont think a vehicle can have two concurrent policies. Transfer of existing policy actually saves the new owner some money, but not always done by new owners

Request more knowledgeable folks to answer this situation.

What if the new owner continually renews the policy that was in the name of the original owner without ever transferring it? Can this happen?

If RC transfer has happened, and the new owner wants to go for a different provider, then it cant be done. Havent checked on the part where insurance is renewed with same provider under the situation of RC transfer.

Sorry, could not give a clear pic. And yes, quite a few loopholes.

[MT_Hyderabad]

My understanding on the topic:
1. New owner can use the previous owner’s policy only for 14 days from the date of ownership transfer.
2. New owner can continue to renew the old owner’s policy but he will never get a claim. Hence, it will be out rightly foolish of him/her to keep buying policy in previous owner’s name after the said 14 days are over.

[Dry Ice]

Originally Posted by dearchichi

I called Acko to check if they can transfer the policy from Royal Sundaram to themselves against the new owner, but was informed that this isn't possible since such only Royal Sundaram can perform the transfer. Acko can only issue a new policy.

Is this incorrect (as it appears going by your statement above)?

Thank you.

My cars were already insured with Acko, hence the transfer was pretty simple. As Acko mentioned, I suggest speaking to the car’s existing insurer about the transfer process.

[hemant.kamat]

Having sold 3 and purchased 1 preowned car in FY2324, let me share my experience:

Originally Posted by dearchichi

4. What is the consensus on the vehicle being covered while the RC is in the new owner's name and the insurance in that of the original one? Would the original owner be liable in any manner in case of an accident?

Transfer of the existing insurance policy can be initiated by the original owner by intimating the insurer of the vehicle sale with copy of sale deed or RC transfer challan. 15 days grace period is usually provided to the new buyer to complete the transfer and requires providing the new RC copy, applicable fees including NCB discount + KYC to be done within this time. In this case, any claim is to be raised by the new owner and will be approved only after the insurance transfer is completed

Originally Posted by dearchichi

5. If the new owner chooses to go for a fresh policy, can the original owner terminate the existing policy? Will the premium applicable to the pending validity period be refunded?

Yes. The existing policy can be terminated by the original owner after providing the insurer with a copy of the new RC. Refund of pro-rata premium + NCB certificate takes usually 3 working days. In this case, the new owner becomes liable from the date of surrender of the original policy, as will be mentioned in the policy closure letter. Any claim is to be raised by the original owner, but only upto the date of surrender

Originally Posted by dearchichi

What if the new owner continually renews the policy that was in the name of the original owner without ever transferring it? Can this happen?

Yes, it can happen as the insurer rarely checks the RC status during renewal. However, in case of an accident, insurance will not cover any owner damages. As the RC & insurance will be in different names, neither party can raise a claim. Not sure about the 3rd party cover, in this case

Originally Posted by dearchichi

I called Acko to check if they can transfer the policy from Royal Sundaram to themselves against the new owner, but was informed that this isn't possible since such only Royal Sundaram can perform the transfer. Acko can only issue a new policy.

Correct. Royal Sundaram can only update the new owner in the current policy. He/You will have to buy a new Acko policy separately, or renew with Acko after expiry of the current policy

My 2/3 cars were insured with Acko. 1 car policy was transferred by me by emailing Acko CC with the new RC & new owner Aadhaar & PAN card copies. I had to pay the transfer fees, including my NCB discount, through an online payment link that they generated, after which they emailed me a cover note letter mentioning the new owner's name

Similarly, I closed the other car policy after dropping an email to Acko CC with the with the new RC copy and mentioning that the new owner wanted to insure the vehicle themselves

[condor]

Originally Posted by hemant.kamat

Transfer of the existing insurance policy can be initiated by the original owner by ..

My two experiences of transfer of insurance of used vehicles purchased both involved presenting the vehicle at the insurance company office to check the condition. Two different providers, and they refused to transfer without checking.

So, if I the seller were to initiate the transfer, how will this be done ? The buyer can dodge presenting the vehicle to the insurance company office ?

[hemant.kamat]

Originally Posted by condor

My two experiences of transfer of insurance of used vehicles purchased both involved presenting the vehicle at the insurance company office to check the condition. Two different providers, and they refused to transfer without checking

Just to understand the criteria for inspection of the vehicles while transferring the policy to a new owner, were any claims made in the current policy before the sale? In my 3 transfers (2 of them from me to the buyer, 1 from the seller to me), I've not had to produce the cars for inspection. My insurers were Acko, Bajaj Allianz & Reliance General

[adisan]

Originally Posted by dearchichi

2. Upon initiation of the transfer of the insurance policy from the original owner to the new owner following the sale of a car, would both the own damage and third-party liability sections of the policy be transferred? If so, the vendor needs to only be paid the transfer fees and the NCB discount that applied to the original owner.
.

The seller can choose from 3 possibilities:
1. Terminate the entire policy, the insurer will issue a pro-rated refund of the premium paid. The buyer has to get a new policy.
2. Cancel the own-damage part. The insurer will issue a pro-rated refund of the corresponding premium as well as NCB certificate (if applicable). Only the third-party part can then be transferred to the buyer.
3. If seller wants NCB certificate, seller has to pay the insurer to offset the NCB discount and the insurer issues a NCB certificate. The entire policy (own-damage as well as third-party) can then be transferred to the buyer.

The trasnfer fee + any extra premium is usually paid by the buyer.