All you need to know about Car Insurance Transfer Process

Insurance transfer used cars

When you buy a used car, you need to insure it at the earliest. This is an important point to remember as driving a car without a valid car insurance policy is an offense in India. You can either buy a brand new insurance cover for your vehicle, or you can have the existing policy transferred from the previous owner. Take a look at this article to know how you can get the transfer done and what factors you should keep in and India while doing so.

Transfer of car insurance

Is it completely mandatory for you to get the existing insurance coverage of the car transferred to your name? Absolutely not! You are not obligated to do so. If you wish to buy a new car insurance online plan for your vehicle, you are free to do so. You must, therefore, analyze your options and see which is a better alternative – getting a new cover or getting the existing one transferred. If you wish to transfer the plan, you have to follow these steps:

Change the registration

The first job is for you to change the ownership of the car and get it registered in your name. Unless the car is registered in your name, you cannot initiate the car insurance online transfer process.


Next, we come to the actual transfer process. For the car insurance policy to be valid, the name on the registration paper and the insurance documents must match. You will also need the following documents:

  • Form 28 and 29
  • Existing policy documents
  • NOC from the existing policyholder
  • Inspection report (conducted by the insurer)
  • Along with these papers, you will also have to make a payment of Rs 50 as the transfer fee.

The NCB component

When you transfer car insurance online India, you have to understand how the no claim bonus (NCB) component works. The NCB is a reward you earn for being a good driver and not making any claims. This is why the NCB of the plan is not transferred. The previous policyholder gets to keep the NCB with him and transfer it to the next plan that he buys for a different vehicle.

If you have some accumulated NCB in your kitty, you can have it transferred to a new plan too. For instance, if you are in the process of getting a car insurance online transfer done, you can keep the previous person’s policy with you and add your own NCB to it.

Other points to remember

There are some other important points that you must remember when you look to transfer car insurance online India. They include:

  • Check the IDV: A car insurance transfer typically happens when a used car is being sold. So when completing this process, ensure the IDV of the vehicle is accurate and the insurance cover you are getting is in accordance with it.
  • Check the deductible: If you are unhappy with the existing deductible component of the plan, speak to the insurer and see if you can adjust it in a more suitable manner. This will help you to get the maximum value out of your car insurance online India plan.

Keep these points in mind when you get your vehicle’s insurance plan transferred to your name. It will help you in getting the best cover at a better rate.


It is not difficult to get your car insurance transferred. You just have to know the steps and follow the correct procedure. Make sure you get the transfer done before you take the vehicle out on the roads. Alternatively, you could also get a new cover altogether. Whatever you do, remember to keep your car insured at all times as that is absolutely crucial.

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