Home Finance Are You Buying a Pre-Owned Bike? Know Why Ownership and Insurance Transfer Are a Must

Are You Buying a Pre-Owned Bike? Know Why Ownership and Insurance Transfer Are a Must

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Whether it is a college student or someone heading towards their golden years, two-wheelers are a popular means of transportation for millions of people in India. Bike manufacturers are aware of this and therefore release new bikes with better features every year. Therefore, people who want to buy new bikes often sell their old bikes. Those who do not have enough savings to buy a new bike usually buy second-hand bikes. There may be many other reasons to buy or sell a used bike. For this reason, the pre-owned market is growing like never before. So, just like you buy bike insurance online when you buy a new bike, it is a good idea to transfer the existing insurance policy in your name when you buy a used bike. Here is a brief overview of bike ownership and insurance transfer:

What is a bike ownership transfer?

Bike ownership transfer refers to the transfer of rights and other responsibilities of the vehicle to its new owner. After submitting all the required documents, you will be issued a Transfer Vehicle Registration Certificate (TVRC) by the concerned RTO. Riding a bike without a transfer certificate carries a hefty fine.

When is a transfer of ownership required?

Transfer of ownership is required under 3 circumstances:

  • Regular sale

If you purchased a pre-owned bike, you must transfer ownership and registration of the vehicle to your name to obtain all legal rights of the bike. *

  • Death of the owner

In case of the death of the registered owner, the ownership is transferred to the legal heir. Before transfer, the legal heir can use the vehicle for 3 months but must notify the RTO within 30 days of death. Within three months, the individual must submit Form 31 for transfer of ownership. *

  • Public auction

The new owner must submit Form 32 to the RTO within 30 days of purchase to acquire the bike. *

* Standard T&C Apply

What is the process for bike ownership transfer?

The seller must submit a transfer application to the RTO registered at the beginning of the two-wheeler. In the event of the death of the registered owner, the legal heir must initiate the process of transfer of ownership.

All documents related to the vehicle should be handed over to the buyer for smooth transfer by the seller. Fill in all the relevant forms and submit them by the deadline. Forms for in state and out-of-state transfers may vary. After submitting the documents and paying the fee, the RTO will certify them. If everything is in order, the process is complete, and the buyer gets a new RC. * Standard T&C Apply

What are the documents required to transfer ownership?

The documents required to complete the transfer of ownership include:

  • Form 29 (in case of general sale), Form 31 (in case of death of the owner), and Form 32 (if the vehicle is purchased at auction)
  • Registration Certificate (RC) Book
  • Certificate in Pollution Control (PUC)
  • Certificate of insurance
  • Sales slip
  • Transfer deed
  • Road tax certificate
  • Valid address proof, proof of identity, and 2 passport size photographs (must be provided by the buyer)

* Standard T&C Apply

Please note that additional documents may be required in the event of the death of the registered owner.

How to transfer bike insurance?

When you plan to buy a pre-owned bike with an ownership transfer, a two-wheeler insurance transfer is also required. This is because, in case of an accident, you will not get the benefit of the policy as the third party insurance is still in the name of the previous owner. You will have to pay out of pocket to repair the damage. The process of transferring bike insurance is as follows:

  • Apply for a two-wheeler insurance transfer within 14 days of purchase.
  • Submit all documents of the seller such as Transfer RC, Form 29/30 / Sale Deed, No Objection Certificate (NOC).
  • The investigation will be conducted by the insurance company.
  • You must pay a transfer fee.
  • After everything is verified by the insurance company, the policy will be transferred to your name.

* Standard T&C Apply

When you buy a pre-owned bike, there are two things you need to do to avoid any legal hassle, such as transferring ownership and transferring insurance. Third-party cover is mandatory for two-wheelers under the Motor Vehicles Act. And you can check out the various options for bike insurance online to suit your needs. Getting an insurance transfer is also a viable option as you do not have to worry about the bike insurance price. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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