Insurance for Used Cars and Bikes: Transfer, Renewal and NCB

The 14-day rule

Motor insurance must be transferred to the new owner within 14 days of the sale. Third-party cover carries over automatically, but own-damage cover does not pay out if the policy is still in the seller's name.

Understand IDV

Insured Declared Value is the maximum payout on a total loss. A low IDV cuts your premium but also your claim. On a used car, pick an IDV close to the realistic market value.

No Claim Bonus stays with the person

NCB belongs to the seller, not the car. Sellers should get an NCB retention letter within 3 years and carry the discount (20-50%) to their next vehicle.

Worthwhile add-ons

• Zero depreciation — worth it on vehicles under 5 years old
• Roadside assistance
• Engine protection, especially in flood-prone cities
• Consumables cover

Frequently asked questions

What documents are needed to transfer car insurance?

The existing policy, the new RC or transfer application, Form 29/30, the buyer's ID proof and an inspection report if the insurer asks for one.

What happens if insurance is not transferred after buying a used car?

Own-damage claims are rejected because the policyholder no longer owns the vehicle, and the seller can still be pulled into third-party liability.