The used car market is booming in India due to its easy access and affordability. It is pretty easy to buy a second-hand car in India, however, many owners of such cars neglect important things that must be done while buying a used car.
Here’s what you need to know:
- If you are about to buy a second-hand car or you just bought one recently, remember to transfer the car insurance or the motor insurance policy to your name within 14 days of buying it. This is mandatory under Section 157 of the Motor Vehicle Act.
- The motor insurance policy covers the damages suffered by you and your vehicle. It also covers the damages of the third party, in case of an accident.
- In case, you have not transferred the insurance to your name, then at the time an accident, you cannot claim insurance for your own damages or for the third party involved. Moreover, the insurance company will not be liable to pay for any damaged caused to you, your vehicle or the third party.
- The court can also send a notice to the previous owner of the vehicle claiming damages and he or she will have to compensate for it, even though the previous owner was not involved in the accident, says Bankbazaar.com.
Here’s how you can transfer the insurance to your name:
- Fill a fresh proposal form.
- Submit all evidence of sale to the insurance company. This includes the transferred registration certificate (RC), Form 29 (notice of transfer of ownership of a motor vehicle) and Form 30 (intimation and transfer of a motor vehicle) signed by the previous owner, a copy of the previous policy and the transfer fee.
- Once you’ve submitted the above, the insurance company will start the transfer process.
- Keep in mind that the transfer of ownership in the registration certificate (RC) may take some time.