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Old 12th November 2011, 01:09   #1
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Default Transfering Car Ownership with Expired Insurance

Hi - I plan to sell my car where my insurance has expired 1.5 years back. Can you please advise on best procedure for new owner to get the insurance in his name as he car is not transfered in his name.

Per him he says that he needs to first take insurance in my name and then transfer it to his name after transfer of ownership is done. I see this as a liability to me as old owner.

Please advise and help me on how best to go ahead.

Thanks
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Old 12th November 2011, 05:10   #2
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Default Re: Transfering Car Ownership with Expired Insurance

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Originally Posted by deesapa View Post
Hi - I plan to sell my car where my insurance has expired 1.5 years back. Can you please advise on best procedure for new owner to get the insurance in his name as he car is not transfered in his name.

Per him he says that he needs to first take insurance in my name and then transfer it to his name after transfer of ownership is done. I see this as a liability to me as old owner.

Please advise and help me on how best to go ahead.

Thanks
1.5 years with no insurance is a crime, first get the insurance done otherwise there will be higher liability that you might end up dealing with.

With no insurance there cannot be a transfer at the RTO, hence YOU need to get an insurance in YOUR name and then sell the car with all the paperwork. No second hand car buyer will buy a non-insured car so as a owner its your responsibility to get it insured (Its a liability that you will have to bear and there is no way one can (or should) avoid it).
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Old 12th November 2011, 07:06   #3
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Default Re: Transfering Car Ownership with Expired Insurance

you need to re-insure your car first. then you need to sell it and transfer this insurance to the new buyer along with the vehicle transfer documents.

while you may view it as a liability to have to take out new insurance etc; in the first place, having allowed your insurance to lapse and having had a car lurking about without having insured it is an offence!

even when you sell your used car under normal circumstances and wish to transfer your existing insurance to whichever new car you're going to buy, along with the No Claim bonus etc, the used car has to be insured at least with third party insurance while it is parked and waiting for a new buyer.

Last edited by shankar.balan : 12th November 2011 at 07:07.
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Old 12th November 2011, 09:10   #4
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Default Re: Transfering Car Ownership with Expired Insurance

Just the thread I was looking for; a friend wants to sell her Nano and the Insurance expired 4 months ago.

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Originally Posted by mayankjha1806 View Post
With no insurance there cannot be a transfer at the RTO,
You sure about this?
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Old 12th November 2011, 09:49   #5
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Default Re: Transfering Car Ownership with Expired Insurance

In Haryana, Insurance is required along with other documents to transfer the ownership. Legally it is not possible to transfer ownership without Insurance. However, you can check if a third party insurance will work.
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Old 12th November 2011, 10:09   #6
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Default Re: Transfering Car Ownership with Expired Insurance

I was shocked to find the same even here as well. This has become the standard procedure since April '11 at my place.

And yes, it is true for Motorcycles as well.
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Old 12th November 2011, 10:19   #7
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Default Read this thread first

http://www.team-bhp.com/forum/owning...car-india.html (ARTICLE: How to sell a *USED* car in India)

This thread contains comprehensive insurance related details pertaining to sale of car. Not just for insurance, one should read this irregardless, before selling a car. Lots of gyaan for first time sellers.
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Old 12th November 2011, 11:03   #8
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Default Re: Transfering Car Ownership with Expired Insurance

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Originally Posted by libranof1987 View Post
Just the thread I was looking for; a friend wants to sell her Nano and the Insurance expired 4 months ago.



You sure about this?
200% sure, when i sold my Indica i had to get it insured (as insurance was close to expiring) and then the deal fell through. Anyway two months later i got another deal and was able to sell it.

Thumb rule is whenever you go to RTO for anything related to car you need insurance, pollution certificate and RC book as a minimum.
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Old 12th November 2011, 14:29   #9
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Default Re: Transfering Car Ownership with Expired Insurance

According to the law, insurance need not be in name of the Registered Owner's name.

Bleh. Who reads the law?? Transfer of insurace costs may be, a 2 digit figure, in INR. So, go ahead, get a policy in your name, keep the car parked, and transfer the policy, car etc. to the buyer.
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Old 12th November 2011, 14:49   #10
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Default Re: Transfering Car Ownership with Expired Insurance

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Originally Posted by BaCkSeAtDrIVeR View Post
According to the law, insurance need not be in name of the Registered Owner's name.

Bleh. Who reads the law?? Transfer of insurace costs may be, a 2 digit figure, in INR. So, go ahead, get a policy in your name, keep the car parked, and transfer the policy, car etc. to the buyer.

And what if the car's passing has also expired? Like a 1994 car? Now the law asks for a green tax also, so would the person have to first ensure passing of the car, then be able to sell it?

Whats the procedure to scrap a car, if the costs related to passing are too high compared to the value of the car?
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Old 12th November 2011, 17:02   #11
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Default Re: Transfering Car Ownership with Expired Insurance

third party insurance does indeed work
no problem

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Originally Posted by .anshuman View Post
In Haryana, Insurance is required along with other documents to transfer the ownership. Legally it is not possible to transfer ownership without Insurance. However, you can check if a third party insurance will work.
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Old 12th November 2011, 21:27   #12
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Default Re: Transfering Car Ownership with Expired Insurance

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Originally Posted by Altaf Petiwala View Post
And what if the car's passing has also expired? Like a 1994 car? Now the law asks for a green tax also, so would the person have to first ensure passing of the car, then be able to sell it?

Whats the procedure to scrap a car, if the costs related to passing are too high compared to the value of the car?
By "passing" I guess you mean fitness certificate. Please see this thread:-

http://www.team-bhp.com/forum/indian...itness-cf.html (15+ year old cars & Certificate of Fitness (CF))

Or

http://www.team-bhp.com/forum/indian...ost-delhi.html (Car re-registration and Fitness Certificate cost in delhi)

Regarding scrapping - you need to ifnorm the RTO about the vehicle being scrapped. Else, they may slap you with road tax demands ("life time" road tax is life time of the vehicle - 12 or 15 years. If you continue to use the vehicle after that, you need to pay annual tax - at least, that is the rule in KL).
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Old 13th November 2011, 04:41   #13
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Default Re: Transfering Car Ownership with Expired Insurance

Thanks for the advice. Can someone clarify what is third party insurance and who sells it.
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Old 13th November 2011, 12:31   #14
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Default Re: Transfering Car Ownership with Expired Insurance

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Originally Posted by deesapa View Post
Thanks for the advice. Can someone clarify what is third party insurance and who sells it.
Third party insurance is where the liability of the insurer is only towards the car/folks you hit and no liability towards damages towards your car/folks.

Third party insurance - Money Matters - livemint.com

Although not an ideal insurance to cover your car its acceptable by law. Do keep in mind many buyers would not buy a car if its only third party insured and not comprehensive insured (for example i would not). So only if there is a ready customer to buy the car you could think of this as an option.

The other thing to remember this is usually done on very old cars which have depreciated to such an extent that if they are badly damaged or stolen there is nothing the owner would expect the insurance company to pay up.

BTW there is a insurance specific thread, please go through that.
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Old 13th November 2011, 22:38   #15
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Default Re: Transfering Car Ownership with Expired Insurance

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Originally Posted by BaCkSeAtDrIVeR View Post
According to the law, insurance need not be in name of the Registered Owner's name.
I have a slight variation of the problem of the OP. But the status as given above. I purchased a Zen. Got it transferred to my name, but somehow did not get the insurance transferred in my name What is the legal position if the car gets into problem? I did remit the insurance policy amount and it is current (expiry Oct 2012) . How to get it transferred in My name in Trivandrum?
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