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-   -   Transferring insurance after change of registration (https://www.team-bhp.com/forum/indian-car-loans-insurance/66418-transferring-insurance-after-change-registration.html)

Hi all,

Need your help on a particular issue - I recently transferred from Pune to Bangalore & got my car reregistered here (4.5 years old car). I am getting my new No.Plates tomorrow. What i wanted to know is what i should be doing with my insurance. My insurance cycle is from Mar-Feb and my current insurance is valid till Feb 2010. But the insurance note will carry my MH registration.

Will it be valid or should i do something to get i changed to my vehicles new KA registration. I hope i neednt pay any premium for this year as i have already paid the one for this cycle. Please advice on this. My insurance is from Tata AIG

Inform the insurance company about the change in the registration status of the vehicle. Send them a copy/scan of the RC book reflecting the new changes. Based on this information the insurer will send you an updated policy.

I did it some time back the insurance company was Bajaj Alliance, it was a no hassle process.:thumbs up

+1 to TJ.

Srikanth you dont have to pay any new premium. Your existing insurance documents will be updated and sent to you. Please call up Tata AIG and find out what is the procedure in their system. I beleive you should update some application document and submit it witha copy of the changed RC book records.

But i had paid some amount around Rs.1500/- to new india insurance to transfer to my name, they said, since they have to adjust No claim bonus which is paid to past owner. So i had to pay the NCB deducting and calculated according to the remaining months of policy.

Also i gave insurance renewal today, but they said, some Rs.2000 extra,(I thought i will b charged less, since the value will be less, and by the way of NCB) since my car is more than 10 years old, so the slab changes. I thought of shifting to cheaper private players, but my friend who is in new india said, it will be easy to claim the amount , if anything happens, since he is in new india. Also he said coming year, he will make sure to reduce Rs.2000 by adjusting some charges.

There is one rule in all the insurance contract which is "right to inform" both the party's have to inform in writing if there is any change in the risk or the coverage.

It is your duty to inform this change to insurance company. For which they will not charge you anything, just a paper work.

Two different story's sirji. he does not have any thing like sale of car or changing the ownership of the car. which is there in your case. Right?

Bumping into an old thread. I have a query on ownership transfer for a car with 25% NCB on current policy. Insurance company wants the new owner to pay 'difference amount' of NCB for the name transfer. Any clue on this one?

The Insurance co is asking for the refund of the NCB amount which was provided to you at the start of the policy period but on pro rata basis. Either you or the new owner has to pay back to the Insurance co the NCB amount which was availed. This is a normal practice.

Thanks. Do you foresee any risks for not changing the name? Assume i need a claim later, i can still do the this name change legally right?

The risk is that you have to take the onus of the liability of the car, anything happens - legal or illegal you will be responsible if you do not do the car ownership or Insurance ownership transfer. Once the Insurance ownership transfer happens, you will not be able to raise any claims against the old car.

As far as insurance is concerned, if ownership of vehicle is transferred but insurance policy is not, no claim will be honored by the insurer.

To describe car insurance in very simple terms, it is the owner who is insured against theft/loss/damage to vehicle and not the vehicle itself, that is why NCB needs to be returned to the insurer if ownership changes. NCB is granted to you based on your good driving/ownership.

The claim will be still honored provided the previous owner files the claim.

The car insurance is for the car and the owner but more specifically for the car. The owner is insured through the Third party liability component of Personal Accident cover.

If the registration is also in the old name, then yes. However, in my view once the registration is transferred to new name and insurance remains in old name, no claim would be honored as the ownership details on the documents essentially don't match.

Is there an insurance expert on the forum who can confirm either ways?

Its not that simple. Say the car is unfortunately involved in an accident. The police/insurance company will require the original RC and Insurance documents for processing FIR and claim. The RC would have new owner name on it and the Insurance would have the seller name - Mismatch - Insurance company would disown their liability. By rule Insurance name change is possible if the insurance company is informed within 15 days of the RC name change. If not the previous policy becomes void.

I have a question regarding to this. The car was earlier registered on my mothers name and subsequently transferred to my name. However the insurance is still in my mothers name. The insurance carries a NCB of 35%. I understand that I have to inform the insurance company about the change of ownership. But then I am confused between two courses of action:-

1. Either I inform the insurance companies about the change in ownership and pay the difference amount of NCB

2. Or I proceed ahead with new insurance since the insurance expires on 17 April 2018 and the insurance companies are quoting the ownership transfer as expired insurance policy.

My another doubt is that if I pay the NCB difference amount, the NCB being given to me still stands at the same percentage or I will not get any NCB.

Thanks

I have faced such a situation.
We gave our old car in exchange to the showroom while buying a new one. The showroom then sold it to another person and ensured the RC was transferred to the new owner. The insurance was valid for some more time and it was left in our name.
The new owner met with an accident in which a couple on a two wheeler met with non fatal injuries. They later filed a claim and made us the third respondent after the insurance company and the car owner as per the RC.
Eventually they settled out of court with the insurance company.
I remember searching for this during this incident and came across an SC ruling by which mismatch between RC and policy owner was not sufficient grounds for the insurance company to deny claims.