Selling Your Bike? Make Sure You Transfer Your Two-Wheeler Insurance Too



Bike enthusiasts are often seen increasing their garage size slowly and gradually over the years. In this process, some bikes are preserved for long whereas some are sold within a short period. 

With the growth of online platforms that facilitate easy sale and purchase of two-wheelers, it has become simple to look for buyers. Selling your bike is a two-fold process – transfer of ownership of the bike and transfer of bike insurance.  Let us understand it in detail. 

Transferring your bike

The transfer of a two-wheeler is a straightforward procedure and begins with approaching the regional transport office or RTO where your bike is registered. The following forms duly filled should be submitted to the RTO – 

  • Form 28 which is required for transfer of ownership.
  • Form 29 which is a no-objection certificate issued by you, the seller for the transfer process. 
  • Form 30 which is an application for intimation of transfer or report of the transfer. It is required to be signed by both the seller and the buyer. 
  • Registration certificate of your bike.
  • Tax certificate.
  • Valid pollution under control (PUC) certificate. 
  • Copy of your bike’s insurance policy.
  • Address proof and photograph.

Further, if your bike is hypothecated with a financial institution, a NOC from the same shall be required. Also, a registration fee shall be required that needs to be paid at the time of submission of the above documents. 

Once the above process is completed, the next step is to transfer the insurance policy. The buyer must get the insurance document transferred to their name within 14 days of buying the bike. If the buyer fails to adhere to these timelines, any claims made shall not be paid by the insurance company. Also, as a seller, it is your responsibility to avoid any liabilities for the same. 

Adding to it, you can also retain the no claim bonus that you earn by not claiming during the previous policy period. Thus to avoid the loss of benefits of no-claim bonus, you should also expedite the process of transfer within the stipulated time of 14 days. 

Transferring bike insurance

  • The first step in transferring a two wheeler insurance third party or comprehensive plan is intimating your insurance company.
  • To transfer the policy in the name of the buyer, the following documents need to be submitted – 
    • The updated registration certificate containing the name of the buyer. In case it is not available, a proof of transfer of ownership can be submitted. 
    • Original two-wheeler insurance policy.
    • Buyer’s address proof and photographs.
  • On successful submission of the above documents, the insurance company begins the transfer process. 
  • Some cases might require the inspection of the bike.
  • A consequent fee is charged for completing such transfer formalities by the insurer.
  • Lastly, as a seller, it is your responsibility to obtain the accumulated no-claim bonus certificate that can be retained for your next two wheeler insurance renewal

While most individuals stop halfway after transferring the ownership of the bike, it is yours, as well as the buyer’s responsibility to complete the transfer of bike insurance too.