When selling your car, the process involves more than just handing over the keys and documents. A key step people often forget is transferring the four-wheeler insurance policy to the buyer. This step is important to keep the car insured and to make sure the new owner has continued coverage. This guide explains why this transfer matters, how to go about it, and what to keep in mind as you get it done.

Why Transferring Insurance Matters

The Motor Vehicles Act of 1988 requires every vehicle on Indian roads to have valid motor insurance. When a car gets sold, the four wheeler insurance plans tied to it also need to move to the new owner. If the policy isn’t transferred, it can cause several problems.

1. Legal responsibility: If the new owner gets into an accident, you might still face accountability for any third-party damages if the insurance hasn’t been transferred to their name.
2. Risk of no coverage for the purchaser: Without proper insurance in place, the new owner would be driving without protection and against regulations.
3. Loss of No Claim Bonus (NCB): You may lose your accumulated NCB benefits unless you officially transfer or retain them before selling the vehicle.

To protect both the seller and buyer, transferring four-wheeler insurance right away is essential.

How to Transfer Four-Wheeler Insurance

Here’s how you can transfer a four-wheeler insurance:

1. Let your insurance company know: Once you finish selling your car, tell your insurance provider about the change in ownership. They can help you understand what paperwork is needed.
2. Get all your documents ready: You will require these:

• A copy of the original insurance policy
• Form 29 and Form 30 to transfer ownership of the vehicle
• Proof of sale or a sale agreement
• A No Objection Certificate from you, the previous owner
• A copy of the buyer’s RC transfer request
• The buyer’s ID proof and driving licence copy

1. Submit documents to transfer the policy: Send these papers to your insurance company within 14 days after the vehicle ownership has been transferred. Third-party insurance stays active during this time, but the own-damage part of the policy comes into effect after the transfer finishes.
2. Update with a policy endorsement: After your insurer checks all submitted details, they will give you either an endorsement or a revised policy document showing the new owner’s information.
3. Keep your NCB: Ask your insurance provider for an NCB retention certificate before finishing the policy transfer. This helps you move your earned bonus to your next vehicle’s car insurance plan, reducing your upcoming premiums.

Final Thoughts

Switching your four-wheeler insurance policy when you sell your car isn’t just a task to complete—it helps protect both you and the buyer. It keeps the vehicle insured, follows legal rules, and ensures you keep your No Claim Bonus.

To keep things easy and stress-free, Chola MS Car Insurance gives you simple online help to transfer policies, renew them, and update ownership details. It makes owning a car smoother.

FAQs

Q1: Can you transfer your four wheeler insurance after selling your car?

Yes, you can do that. Make sure to start the process within 14 days of selling your car so coverage continues without any issues.

Q2: What if the insurance isn’t updated to the new owner?

If the policy stays in your name, you could end up responsible for any accidents caused by the buyer. Plus, the new owner will not get any coverage for damage to their car.

Q3: Can I keep my No Claim Bonus if I sell my car?

Yes. To use your No Claim Bonus on the insurance for your next car, you need to ask your insurer to give you an NCB retention certificate before the policy is transferred.

Q4: Do comprehensive and third-party insurance follow the same process?

No. Third-party insurance moves to the new owner for 14 days. However, for comprehensive (own damage) insurance, you will need to go through a formal transfer with your insurer.