A bike is an affordable and popular mode of transportation available, and for a country like India, it is also a necessity. Everyone cannot buy a car, so they settle for a bike or a bicycle. This makes two-wheelers, gear or non-gear, a preferred motorbike for India and Indians.
But, when buying a bike, opting for a bike insurance plan is critical to seek financial assistance against bike damages. Choosing a suitable cheap bike insurance, or just good bike insurance, is essential. You can make use of online tools such as bike insurance calculators to make a better choice.
However, there might be times when you will have to or want to sell your bike. At such times, just handing your bike over to the interested person and taking the money as a transaction is not enough. That is because the transfer of possession is not equal to the transfer of ownership. You have to go through an entire legal and official procedure for that. When you buy a new bike, you have to buy insurance for that bike, too; it is mandatory.
So, once you complete the procedure of transferring the ownership, what do you do about the insurance? Is a bank insurance transfer to the new owner possible, too?
The answer is YES! You can, and there is also a procedure you need to follow for the same.
Bike Ownership Transfer Procedure
- You Must Have a Ready Buyer
You need someone who can purchase your bike if you want to sell it. It is as simple as that! In fact, you can sell a bike under one condition: you must have a ready buyer. Or else it is not valid. There is another case where the bike owner is no more, and the bike’s owner’s heir will receive the owner of that motorcycle.
- Visit the Regional Transport Office
You and the buyer will have to visit the RTO, the same one that gave you your permanent registration number. Write an application stating the fact that you wish to sell your bike to a particular person. Also, write that you wish to transfer the ownership of the bike to the same person. Bring the basic but necessary documents with you: driver’s license, identity proof, and address proof.
- Submit Necessary Forms and Documents
The RTO will give you some form to fill out for the transfer of ownership of the bike that you need to fill out. Form no. 28 (application and grant of No Objection Certificate), form no. 29 (Notice of transfer of ownership), form no. 30 (Application for intimation and transfer of ownership), the registration certificate that you own, the emission certificate, passport-size photographs, and valid bike insurance policy papers.
- Transfer of the Possession
If the buyer and you are in the same state, then you will have to hand the bike over to the new owner within 15 days after completing this process. But if you are from different states, you will need to send the bike within 45 days of the process completion. In case of the death of the owner, the bike’s owner’s heir must notify the RTO about the same within 30 days of the incident in order to get possession and ownership of the bike.
Bike Insurance Transfer Procedure
Having a bike translates to mandatory possession of bike insurance. So, when the new owner of the bike rides the second-hand motorcycle, s/he must have insurance with it.
You, the old owner, already have insurance for the same bike. So, all you have to do is transfer the ownership of that bike insurance to the new owner of your bike.
- Contact the Insurance Company
You must inform the insurance provider about your wish to transfer the bike insurance. You must apply for the transfer within 14 days of the official bike ownership transfer. You can also transfer your bike insurance online nowadays. All you need to do is fill out a form or two on the official website of your insurance company, and you’re done.
- Collect and Submit the Necessary Documents
By now, you will have the proof of bike ownership transfer. That is necessary for the insurance transfer for the bike. You need your original insurance papers, premium payment proofs, RC, dealer name, owner’s and seller’s KYC documents, PAN card, Adhaar Card, and Driver’s License. Transfer the necessary documents to the new owner, like the insurance documents.
- Regional Transport Office
Once all the bike insurance transfer is done by your side, the RTO will verify every document and then authentify the transfer. The insurance will be transferred to the new owner’s name, and you will be free from your responsibilities.
To sum it up
You can transfer the ownership of the bike insurance along with the two-wheeler to someone else. In fact, it is a critical step in ensuring the new owner’s protection.
Since it is legally mandatory to have bike insurance along with a bike, the new owner will need it. Keeping everything in mind, transfer your insurance ownership to the relevant person for both benefits.
You take off your hands from every responsibility related to that bike. Once you understand the process thoroughly, it isn’t challenging to go through the process.