How to transfer car registration from one person to another

If you are planning to buy a second-hand or used car, you will need to transfer the vehicle's registration in your name and then carry out the process of transferring the insurance of the car. This process is important as it ensures that the vehicle and all legal liabilities related to it are transferred to the buyer. Let us understand the whole process in detail.

Steps to transfer the registration and insurance

If you are doing this process for the very first time, you should be aware that transferring the registration as well as the insurance is important for making an insurance claim. And for this, the name of the vehicle's owner must match with that of the name mentioned in the insurance document to be eligible to avail coverage of the damage caused due to an accident. This criterion is a must as per the guidelines issued by the Insurance Regulatory Department of India (IRDAI).

To proceed with the process of registration and insurance transfer, second-hand car buyers are required to follow the steps mentioned below.

  • If you are transferring the ownership of the vehicle to another person, in that case, you need to submit Form 29 along with all the details of the transferor and transferee.
  • If you are transferring the vehicle's ownership within the same state, then the transferee needs to submit Form 30 within 14 days of the transfer.
  • If the transfer of ownership of the vehicle is outside the state, then, the transferee is required to submit Form 30 within 45 days of the transfer.
  • Pay the applicable fee and taxes as mentioned in rule 81 of the Central Motor Vehicle (CMV) Rules 1989.

Documents required for transfer of vehicle registration:

You need to submit the following documents at the time of transferring your vehicle's registration:

  • The new copy of the registration certificate i.e. Form 29. Please make sure that the form is attested by both the parties i.e. transferor and transferee. 
  • Old policy documents of the previous owner.
  • No Objection Certificate (NOC) from the previous owner of the motor vehicle.
  • Form 30 i.e. new application form for transfer of registration.
  • Once you submit the above-mentioned documents, the insurance company will hand you an inspection report following a thorough inspection of the vehicle.
  • No-claim bonus certificate (if applicable).

No-Claim Bonus Retention

If the original owner of the car wishes to sell his/her car, they can retain the no-claim bonus. By doing so, the owner can transfer his/her no-claim bonus advantage to their next insurance policy and avail of a discount in premium. 

To start with the process of the no-claim bonus retention, the original owner of the car will have to follow the steps mentioned below and submit the necessary documents.

  • The owner is required to submit a request letter for policy cancellation.
  • Original policy copy and certificate of insurance i.e. Form 51.
  • Form 29 i.e. notice of transfer of ownership of a motor vehicle
  • Submit Form 30 i.e. application for intimation and transfer of ownership of the vehicle. 
  • The photocopy of the registration certificate with the name of the new owner must be submitted.
  • Lastly, the proof of delivery of the car to the new owner must be submitted.