Here’s What You Need to Remember When Selling Your Old Bike and the Insurance Transfer Process

Here’s What You Need to Remember When Selling Your Old Bike and the Insurance Transfer Process

As a two-wheeler owner, you must be aware of the mandatory requirement to purchase a two-wheeler insurance policy. The bare minimum policy that you need to have is a third-party coverage. However, when you choose to sell your existing bike, you need to remember not just transferring the ownership, but also its insurance policy along with it. 

There is a detailed procedure for transferring such ownership and insurance cover to the new owner. This article elaborates on what you must know when it comes to transferring the title as well as its two wheeler insurance coverage.

Transferring the ownership of your bike:

Transfer the title of your bike is a straightforward process and begins with approaching the regional transport office or RTO where your bike is registered. You need to fill out the following forms and must be submitted to the concerned RTO:

  • Registration certificate of your bike.
  • Tax certificate.
  • Valid pollution under control (PUC) certificate. 
  • Copy of your bike’s insurance policy.
  • Address proof and photograph.
  • Form 28 is required for transferring the ownership.
  • Form 29 is a no-objection certificate issued by you and is required to be issued by you, the seller for the transfer process. 
  • Form 30 is an application for intimation of transfer or report of the transfer. It must be signed by both,you, the seller and the buyer. 

In addition to the above documents, if your bike is hypothecated with a financial institution, an NOC shall be required to be submitted to the RTO to delete such hypothecation and only then it can be transferred to the buyer. 

For any transfer of the title must be carried out within a period of 14 days in case both, the seller and buyer are within the same state. If not, the time limit is extended for a period of 45 days to complete the transfer once the sale is complete. * Standard T&C Apply

Transferring the insurance coverage of your bike:

On completing the transfer of title of your vehicle, the next step is to carry outthe bike insurance transfer. Such transfer of insurance coverage must be done within 14 days of transfer of the title. The third-party coverage of your bike insurance policy automatically operates in the name of the buyer for up to 14 days. Once this period is complete and the insurance coverage is still not transferred, such insurance coverage automatically ceases. Any claims made after such 14 days will not be paid and third-party liability shall be the concern of the seller, i.e., you.

  • The process of transferring the insurance coverage begins with intimating the insurance company. 
  • The following documents must be submitted in such process:
    1. The new and updated registration certificate containing the name of the buyer. If it is not available, a proof of transfer of ownership can be submitted. 
    2. Original two-wheeler insurance policy held by the seller.
    3. Buyer’s address proof and photographs.
  • Once the above documents are submitted successfully, the insurance company begins the transfer process. 
  • In some cases,an inspection of the bike might be required.
  • A consequent fee is charged for completing such transfer formalities by the insurer.
  • Lastly as a seller, it is your responsibility to obtain the no-claim bonus certificate that is accumulated in your policy so that it can be retained for your next two wheeler insurance renewal.

* Standard T&C Apply

While most individuals stop after transferring the title and skip the insurance transfer process, it is your, the seller as well as the buyer’s responsibility to complete the insurance transfer when selling your bike.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.


I am Finance Content Writer . I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. Linkedin

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