April 11, 2025 - Zurich Kotak General Insurance is a
trusted name for insurance solutions, ensuring policyholders experience
hassle-free claim settlements. The transfer of car insurance policy has been an
integral part of any buying or selling of four-wheelers. Be it in the case of resale,
inheritance, or even company vehicle reassignment, the transfer is crucial.
However, many vehicle owners focus only on transferring ownership through the
Regional Transport Office (RTO) medium. They often overlook the importance of
updating the insurance policy that reflects the new owner's details. Failure to
do so can lead to claim rejections, legal complications or even financial
liabilities.
Many policyholders have little clarity
on transferring the ongoing car insurance policy. While many assume that car insurance automatically follows the
vehicle, this is not the case. In fact, Section 157 of the Motor Vehicles Act
stipulates that both the buyer and the seller must ensure that the car
insurance transfer is completed within 14 days of the vehicle's purchase.
Zurich Kotak General Insurance has outlined a detailed guide on how to transfer
the car insurance policy. While the focus is on general procedures, we'll also
touch upon how we facilitate this process to ensure a seamless experience for
the policyholders.
Step-by-Step
Process for Car Insurance Transfer
A
structured approach ensures that the transfer process is executed efficiently,
minimizing disruptions to coverage and compliance.
Step 1: Transfer of Vehicle Ownership at
the RTO
The
insurance transfer process begins with updating the Registration Certificate
(RC) in the name of the new owner at the Regional Transport Office (RTO). This
step is mandatory, as insurance cannot be transferred unless the legal
ownership is changed.
- The seller must submit Form 29 and Form 30, along with
sale documents, to the RTO.
- The buyer is required to complete the RC transfer within
30 days of purchase.
- The updated RC copy must be obtained as proof before
proceeding with the insurance transfer.
Step 2: Notify Zurich Kotak General
Insurance About the Ownership Change
Once
the RC is transferred, the seller or buyer can inform Zurich Kotak General
Insurance about the change in ownership. It is recommended that this be done
within 14 days to ensure continuous policy validity. Delays beyond this period
could lead to coverage lapses.
Step 3: Submission of Required Documents
In
order to facilitate a smooth transfer, you need to submit the following
documents:
- An updated Registration Certificate (RC)
- Original insurance policy document
- Duly signed Form 29 and Form 30 (proof of sale and
ownership transfer)
- No Objection Certificate (NOC) given by the previous
owner
- Vehicle inspection report (If only required by the
insurer)
- Valid Pollution Under Control (PUC) certificate
- New owner’s identity and address proof
- Road tax receipt (if applicable)
Step 4: Vehicle Inspection & Premium
Reassessment (If Required)
It
depends on the type of policy as well as the insurer’s terms if a vehicle
reinspection is required before transferring the insurance. Zurich Kotak
General Insurance ensures a quick and seamless evaluation process, where we
assess the vehicle’s condition and make necessary updates to the policy, such as
the Insured Declared Value (IDV).
Step 5: Transfer Fees Payment &
Policy Endorsement
A
nominal transfer fee may be applicable as per policy conditions. Once the fee
is paid and all documents are verified, Zurich Kotak General Insurance issues
an endorsement reflecting the new owner’s details.
Step 6: Issuance of a New Policy Document
Once you have successfully completed the
process, a new policy document is issued along with the new owner's name. It is
always advisable to review the updated policy thoroughly to ensure it covers
all the essential aspects such as third-party liability, own damage protection
and any add-on covers required.
Key
Considerations for Buyers and Sellers
For the Buyer:
- Assess the current policy: Before purchasing a vehicle,
review the existing insurance policy’s coverage, validity, and exclusions.
- Upgrade to a comprehensive policy: If the existing
policy is third-party only, consider switching to a comprehensive plan for
enhanced protection.
- Check the No Claim Bonus (NCB) Clause: The previous
owner’s NCB is non-transferable and remains with them, but as a buyer, you
can negotiate a price reduction considering the potential premium
increase.
- Confirm the policy transfer timeline: Ensure the process
is completed within 14 days to avoid coverage lapses.
For the Seller:
- Retain Your NCB: Apply for an NCB retention certificate
if you plan to purchase another vehicle, ensuring you receive applicable
discounts on future policies.
- Ensure policy transfer to avoid legal liabilities: If
the policy remains in your name after selling the vehicle, you could be
held responsible for accidents or damages caused by the new owner.
- Secure documentation: Keep copies of all
transfer-related documents, including the sale agreement and policy
handover confirmation.
Challenges
in Policy Transfer & How to Overcome Them
1. Delayed Transfer Process
If
you fail to initiate the transfer within the stipulated time, it can lead to
insurance lapses, claim rejection, or legal complications. Policyholders need
to act proactively in such cases to ensure a timely transition.
2. Incomplete Documentation
Any
incorrect or missing paperwork is one of the primary reasons for rejection. You
need to have proper checklists and digital submission options to prevent
errors.
3. Expired Insurance Policies
If
the existing policy has expired, the new owner must purchase a fresh policy
immediately. Zurich Kotak General Insurance offers hassle-free renewals with
customizable add-ons to ensure optimal protection.
How
Zurich Kotak General Insurance Streamlines the Transfer Process
Zurich
Kotak General Insurance is dedicated to ensuring policyholders experience a
seamless and efficient car insurance transfer process through:
- Digital processing: Online submission and tracking of
insurance transfer requests.
- Automated policy issuance: Minimized paperwork and quick
processing for uninterrupted coverage.
- Dedicated assistance: Round-the-clock customer support
via toll-free helpline 1800 266 4545.
- Flexible coverage options: Upgrade policies with depreciation cover, engine protect, and roadside assistance.
- Instant document access: Download and manage insurance
documents through an intuitive digital portal.
Zurich
Kotak General Insurance Company (India) Limited (Formerly known as Kotak
Mahindra General Insurance Company Limited)
Zurich Kotak General Insurance Company (India) Limited is a 70:30 joint venture between Zurich
Insurance Group and Kotak Mahindra Bank. The Company its new name ‘’Zurich
Kotak General Insurance Company (India) Limited’’ in the month of August 2024,
following Zurich Insurance Group’s 70% acquisition in Kotak Mahindra General
Insurance Company Limited. It is the youngest and one of the fastest growing
non-life insurance franchises in India.
Kotak General Insurance was established
in 2015 to service the growing non-life insurance segment in India. The company
aims to cater to a wide range of customer segments & geographies offering
an array of non-life insurance products like Motor, Health, Home etc. As a
practice, the company seeks to provide a differentiated value proposition
through customized products and services leveraging state of art technology and
digital infrastructure.