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How To Transfer Car Insurance Policy?


Written by Udit Varshney

Updated Mar 04, 2024

Transfer Car Insurance to New Owner & Change Name in the Policy Online

When transferring car insurance to a new owner, it is imperative that you keep in mind that all the documentation and insurance has been transferred to the new car owner's name to ensure no problem in the future. If you are a seller, read on to learn how to transfer your car insurance coverage to the new owner.

How To Transfer Car Insurance Policy?

What Is the Importance of Transferring the Car Insurance Policy to the New Owner?

Below we have enlisted some advantages of transferring the car insurance policy to the new owner - 

  • Buying Or Selling A Used Car Not An Easy Task

When transferring ownership of the car to the new owner, it is critical to officially transfer all documentation connected to the car into the new owner's name. These are the reasons why you should move your vehicle insurance policy:

  • Liability Insurance For  Future

If a third-party or their property is damaged, the car insurance policy must be in the new owner's name in order to make a third-party insurance claim. If the car insurance policy has not yet been transferred, the third-party claim will be denied and you may be held legally responsible.

  • Retaining The No Claim Bonus

If you are a seller and have not made a claim throughout the policy period, the insurance company will reward you with a no-claim bonus, which is a valuable savings on your rate for the next year. As a seller, you must notify your insurance provider and redeem the NCB certificate in order to receive discounts when purchasing a new insurance policy.

How To Transfer Car Insurance Policy From One Person To A New Owner in India?

Vehicle insurance name transfer is a critical process. According to the transportation department's guidelines, it is the seller's responsibility to transfer the car insurance policy to the new owner. You must ensure that the insurance has been transferred to the new owner’s name buyer. 

The following are the actions that must be taken in order to transfer a car insurance policy to a new owner:

STEP 1- Check that you have all of the documentation needed to begin the vehicle insurance transfer process.

STEP 2 - As soon as the ownership transfer process is complete, apply for the transfer of the car insurance policy within the time frame specified.

STEP 3 - Select the comprehensive car insurance plan as well as any optional add-on coverage that you believe is required.

STEP 4 - To begin the transfer of your car insurance policy, provide all essential documents, including forms 29, 30, and the Sale deed.

STEP 5 - the insurance company will send a surveyor to inspect the car.

STEP 6 - The policy will be moved to the new owner's name once the assessment is finished.

What Documents Are Required To Transfer A Car Insurance Policy?

It is critical to have specific paperwork in hand when transferring your car insurance policy to a new owner in order to securely transfer the policy. The following are the documents you will require:

  • The original Registration Certificate for the vehicle (RC)
  • RTO receipt for Forms 28, 29, and 30 signed by both the buyer and seller as proof of transaction.
  • Certificate of No Objection from the former owner of the vehicle.
  • Proof of the buyer's address
  • Photographs of the buyer and seller in passport size.
  • Documentation for an existing insurance coverage.
  • The insurance company provided an inspection report on the vehicle.

No Claim Bonus (NCB) Certificate in Car Insurance Transfer Process

To transfer the No Claim Bonus (NCB) certificate in car insurance, follow these steps:

  • Contact your previous insurer and request an NCB certificate.
  • Provide necessary information, such as policy details and vehicle registration number.
  • Submit required documents, such as the previous policy copy and a transfer form.
  • Your previous insurer will issue the NCB certificate, indicating the accumulated bonus.
  • Provide the NCB certificate to the new insurer when purchasing a car insurance policy.

Note: NCB is transferable only when you switch insurers during car insurance policy renewal, not during the policy term.

Documents Needed for NCB Retention Letter

To obtain an NCB retention letter, you will generally need the following documents:

  • Valid identification proof.
  • Previous insurance policy document.
  • Proof of sale agreement (if the vehicle has been sold).
  • Vehicle's registration certificate and transfer forms (if applicable).
  • No Claim Bonus (NCB) certificate issued by the previous insurer.
  • Ensure that you have these documents ready and submit them to your insurer to obtain the NCB retention letter.

NCB Can also be Transferred to a New Owner?

Yes, the No Claim Bonus (NCB) can be transferred to a new owner in the case of vehicle sale. The original owner can transfer the NCB to the new owner if the previous insurance policy is not expired. The process involves obtaining an NCB retention letter from the previous insurer and providing it to the new owner. The new owner can use the NCB to avail discounts on their own car insurance premium. It is important to inform the insurance company about the change in ownership and follow the specific procedures outlined by the insurer for NCB transfer.


It is the seller's responsibility, according to Section 157 of the Motor Vehicle Act, to transfer the car insurance coverage to the buyer within 14 days. If the seller fails to transfer the car insurance policy to the new owner, the insurance provider is not obligated to compensate the new owner for any losses.  Hence, ensure that you transfer the car insurance coverage in a timely manner and live a legally secure life.


1. Can car insurance be transferred? 

Yes, car insurance can be transferred when you sell or buy a vehicle. To do so, you'll need the new Registration Certificate (RC) or Form 29, the old vehicle insurance policy documents, a No Objection Certificate (NOC) from the former policyholder, a new application form, an inspection report conducted by the insurance company, and the difference in No Claims Bonus (NCB) if applicable. 

2. Can we change the name in car insurance? 

Yes, you can change the name on a car insurance policy. To accomplish this, you'll typically require an application form, Form 29, Form 30, a No Objection Certificate (NOC) from the existing owner, an inspection report from the insurance company, and the vehicle's registration certificate in the name of the new owner.

3. How to change the policyholder name in car insurance? 

To change the policyholder name in car insurance, you'll need to provide the new copy of the registration certificate or Form 29, the old car policy documents, a No Objection Clause (NOC) from the previous policyholder, a new application form, an inspection report conducted by the insurance company, and the difference in the No Claims Bonus (NCB) amount, if applicable.

4. Can I transfer my old car insurance to a new car?

Yes, you can typically transfer your old car insurance to a new car.

Also read 

What Can Happen if You Ignore the Transfer of Insurance for a Used Car?

Car Insurance Guide for Second Hand Car   


Written by Udit Varshney

Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Read More


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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