Team-BHP (https://www.team-bhp.com/forum/)

-   Indian Car Loans & Insurance (https://www.team-bhp.com/forum/indian-car-loans-insurance/)

-   -   Unique case of insurance expiring in between ownership transfer (https://www.team-bhp.com/forum/indian-car-loans-insurance/162971-unique-case-insurance-expiring-between-ownership-transfer.html)

Hello all,

I recently terminated the company lease on my XUV 500 and made an upfront payment for the remainder. It was a financial loss but the XUV was too dear to me for me to sell it. Now I am outside India but I need a quick advise.

I submitted the ownership transfer documents through an agent on April 11th and I am given to believe that it will take ~3-4 weeks for new papers to be delivered. (Is this correct or can it be expedited?)

Now, my insurance is expiring on 24th April and it is currently in the company's name. The agent said that I can buy the insurance and get it transferred through a form 29 later, but I am not sure how easy or time consuming will that be. I wanted to check if I should wait till I get the new RC or I should go ahead with what the agent is suggesting.

Also, my family had planned to travel in the car from May 2nd - May 4th but that will not happen if there is no insurance. So would also request you guys to keep that aspect in mind while advising.

Tricky it seems.

Best regards,
carvoyeur

I would suggest renewing the insurance and then transferring the insurance to your name later. If the insurance expires, even the RC transfer could get blocked since valid insurance is one of the documents we need to submit from what I remember.

I did it after the completion of my company lease and had to visit the insurance office twice to get it done. The second visit was necessary only because they didn't agree to transfer NCB to my name initially and asked me to pay the difference in premium amount. I had to get NOC from my HR department for transferring NCB to my name.

Hey Thank you for your prompt reply. The papers are already submitted in the RTO so I did submit a proof of valid insurance (albeit till 24th)

For transferring insurance to your name, did you have to fill in a form 29? or you just told the insurance company that the car is in my name now and they obliged. About the NCB I understand. My insurance company is ICICI lombard

I don't exactly remember. Process included going to RTO to submit the required forms for removing hypothecation and transferring ownership to my name. Later, once I got the new RC, I went to insurance office to transfer the policy to my name. Somewhere in between, I think I did encounter Form 29 and Form 30 though I think it was at the RTO and not at the insurance office.

I did fill in some form that the insurance office gave me, though I don't think it was Form 29. Maybe the Form 29 copy is needed if the RC is not in your name yet, while it might not be needed if you already have the new RC that says the vehicle is in your name. Just a guess. I did this in 2011 June and hence some things are a little vague now. I certainly had a Form 29 copy with me then. So even if they had asked, I would have had it handy.

Don't you also have a copy of the documents you submitted at the RTO? The Form 29 should be in that set.

I would also have it (though sadly, now that you said it, I did not make any copies) because my agent did not use form 29 that the company provided me.

I think I will call up the insurance company to confirm

Thanks for the help.

Just a follow up question - how long did it take for you get the new RC once you had submitted the forms and documents in RTO ?

If you have form 29/30 (depending on ownership transfer type), you can buy NEW insurance based on that, completion of ownership transfer is not MANDATORY to get insurance in your name.

How do I know? I just sold my car. I was concerned about the new owner driving around on my liability while the ownership transfer got processed, post which he could apply for transferring insurance by paying NCB difference in premium. Instead, I chose to cancel my insurance (Bajaj Allianz) and took the NCB certificate, while the new owner purchased insurance in his own name by furnishing form 29 & 30 to the insurer (as proof of ownership transfer in progress). Talk to your insurer for specifics.

In lease cases, if the NCB is transferable to you as part of lease closure, best thing to do is renew the insurance, then transfer it later to your name once ownership transfer is completed. If the NCB gets transferred without issues (as it should be), you won't have to pay anything to continue the insurance (as against a second owner having to pay the NCB difference).

First and foremost get the 1) Insurance renewed either by Company or yourself and transfer it to your name OR 2) Get the Insurance transferred to your name and renew it ASAP. Since you have already applied for ownership transfer and submitted the documents to RTO, you should be having the receipt of transaction which is sufficient enough for the Insurance transfer along with the original Insurance policy document. You can later submit the changed RC to Insurance co. Until you have completed the Insurance transfer formality, would suggest you to refrain from travelling in the car although the Insurance transfer transaction proof is sufficient for claiming any un towards incident.

Ideally the ownership transfer is equivalent to issuing a new RC which takes approximately 40-45 days in RTO and the new RC will be despatched to your address by post. Once received confirm the details on the card esp the engine/chassis no.

Carvoyeur, your problem is not unique. I have just gone through the same. Heck, my ownership transfer is stuck at RTO for last 6 months (as it is a case of out of state registration). So what I did is renewed the insurance in the name of previous owner and will be getting it endorsed to my name with the help of the previous owner. Of course, all this with prior discussion with the previous owner. I could have got done a new policy in my name with Form 29/30 but that meant a physical inspection of the car. Although I did not have any problem with that, but since the other method looked convenient, I went through with that. The previous owner will be getting an NCB certificate as well.

Regards,
Saket

I got my car physically inspected by the insurance guy, who asked for a TD, looked under the bonnet etc, got him a copy and acknowledgement of the transfer forms from the RTO and I was issued a policy in the "new" name right the next day.


For the policy, I went through policybazaar guys who got me some very competitive rates as the NCB component for the policy for this year was zero.

If you have the insurance transfer form signed, you can renew the insurance in your name.

When i bought my pre owned XUV, the insurance was already expired, but since tranfer formalities requires a valid insurance i got it renewed on my name. The insurance company just asked for the insurance transfer form, which i already had got signed from previous owner.

Is there a prescribed common template for this (similar to CMV forms) or is this insurer-specific?

You can get the form template from your insurer.
Alternatively they may accept a copy of the RTO receipt of transfer and a generic letter from your side.
Note that you may need to pay some amount based on ncb applicable or withdrawn.

Thank you to you two and everyone else for their response. I feel much more aware about my options.

Here is what I am planning to do. I am going to wait till this Friday in case the RTO returns the paper by then. So there will be two scenarios:

Scenario 1: RTO returns the paper
I will buy the insurance in my name. It will still be a renewal. I am buying it online through policy bazaar this time (Bajaj Allianz) so they will issue a policy. How will they transfer the NCB?

Scenario 2: RTO does not return the papers
I will buy insurance from Bajaj. Once I get the car RC, I will take that and the NOC for No claim bonus from my company and change it in my name.

Somehow, the scenario 2 sounds simpler to me in either case. I will be able to buy insurance and then have enough time to get the name changed. Should I just go ahead this way?
Also, I have not purchased online policy before but Bajaj is offering 8,000 cheaper than what ICICI is asking me for renewal (plus the road side assistance is additional in Bajaj). Unfortunately I am not able to call agents for any queries since I am not there so at the risk of duplicity-
• I just buy the policy online from policy bazaar?
• Is it safe, will they redirect me to Bajaj or will policybazaar be the agent
• Is it possible for my dad to go and get the name changed or do I need to be present (which is not possible anyway
• What are the repurcussions if I don’t get the owner name changed in policy?

If the Insurance is about to expire, then scenario 2 is the right approach. Coming to your queries:
1) Do the online comparison on policy bazaar, get to know the premium rates. Try the Insurance co website for an online quote and decide which offers a VFM buy.
2) They might re-direct you to BA website, I personally dont buy on comparison site. You end up in their mailing list and then the spam starts.
3) With the correct documentation, anybody can submit the request for Insurance ownership transfer.
4) You wont be able to claim any repairs if anything were to happen to the car. Also the entire TPL amount would go from your pocket.

In scenario 1, you can mention the applicable NCB while renewing Insurance. Or else if you have the previous NCB certificate you can hand it over to the Insurance co.

The insurance policy can definitely be transferred to your name, and is only an hour's job. And the charges would be Rs 100/- only.
If the Company renews the policy now, you will be at a definite advantage, as the pro-rata premium amount for the rest of the period would be lessened when you convert it in your name. This is applicable for the comprehensive cover policy.