Planning On Upgrading Your Car? Here’s How You Can Transfer Your Insurance Policy


It is always exciting to upgrade and bring home a new car. The updated technology, the latest engine with some mind-blowing power figures and more. All of it is exciting and an exhilarating experience for every auto enthusiast. 

In this process, two things need to be done – sale of the existing car and transferring your existing motor insurance policy. But once the existing car is sold, what most individuals miss on is transferring the insurance document. Let us look at the entire process of upgrading and transferring your insurance cover. 

Transferring your car’s ownership

Transferring your car’s ownership is a straightforward process that begins with approaching the regional transport office (RTO). Here you need to submit the following forms – 

Form Number 28: It is an application for receiving no-objection certificate (NOC) from the RTO where your vehicle is registered. It serves as evidence for no unsettled liabilities or obligation for your car. 

Form Number 29: It is the NOC that is issued by you, the seller, declaring necessary documents are handed over to the buyer.

Form Number 30: It is an application for intimation of transfer or reporting of the transfer. Form 30 further supports form 29 and must be signed by both the seller and the buyer. 

Apart from these forms, there are transactional documents that need to be transferred. These include a notarised sale affidavit and delivery note signed by the buyer. Next, include evidence of the payment received from the buyer in some form (photocopies of cheque or credit in case of bank transfer). Make sure you include the buyer’s identity proof and address proof as well. If your car is hypothecated with a financial institution, Getting these documents registered will help in transferring all vehicle-related liabilities to the prospective buyer. 

On completion of the above process, the next step is transferring your insurance cover. It is a shared responsibility of the seller and the buyer to transfer the insurance document within 14 days of the transfer of the car. No claims shall be entertained by the insurance company if the buyer fails to adhere to these timelines. To avoid any future liabilities, you as a seller must ensure the transfer of insurance policy is done in the buyer’s name. 

When transferring your comprehensive plan, you can retain the no-claim bonus earned during the previous policy year. Thus to avoid any loss of benefits for your next car, make sure to expedite the process of transfer within 14 days. You must note that the no-claim bonus facility is not available for third party car insurance plans.

Transferring your car insurance policy 

  • The first step is to inform your insurance company about the sale of your car. 
  • Updated registration certificate, buyer’s address proof and photographs need to be submitted to the insurer for initiating the transfer process. 
  • In cases where an updated registration certificate is not available, a proof of transfer of ownership along with acknowledgement of the RTO forms can be submitted. 
  • At times, the insurer may want to inspect the car. 
  • As a seller, make sure you obtain the accumulated no-claim bonus certificate that you can retain for your new car insurance policy. You can purchase your new car insurance online or offline depending on your preference. 

Now that you are informed of the process of transferring your car insurance policy, make the best of it and take advantage of transferring your accrued policy benefits. Stay insured, stay informed!


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