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.
Documents required for transfer of vehicle registration:
You need to submit the following documents at the time of transferring your vehicle's registration:
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.