[aviraj]

Originally Posted by bdutta

Folks,

When one sells a vehicle, what happens to the insurance ? Does the insurance gets transferred in the name of the buyer ? If so, what is the procedure to do the same ? In this case, would I still get to claim the NCB (50%) from this for my newer vehicle (where NCB is just 20%) ?

In my case, the car is being sold to a friend who'd get the vehicle registered in another state, in about a month's time. All paper work, except the RTO NOC is ready. However, the insurance validity will end in about 25 days. For the 5-7 days after my current policy ends, and the car is reregistered in other state, in my friend's dad's name, what happens to the insurance ?

Kindly guide and enlighten. Thanks in anticipation.

Insurance company will tell you to transfer the vehicle to the new buyer and once the buyer gets the RC, submit a copy of the RC to the insurance company and request an NCB certificate. The insurance will then get transferred to the new buyer while you will get the NCB certificate which can be used within 3 years on another car on the same name.

You can also request the insurance company to immedietly issue the NCB certificate to you as you will pay the NCB difference and let the policy continue as it is. In that case you will have to still renew the policy, but transfer to the new name will happen only after the buyer gets the RC copy on his name

[Dodge_Viper]

Originally Posted by GTO

This may sound like additional work, but it is only to ensure your security. Search the forum for horror stories where buyers (including dealers) drive the car around in your name. The law states that YOU are responsible for the car as long as it stays registered in your name, and the onus of informing the RTO lies on you.

Notify the RTO (from where your car was registered) within 14 days of sale. Send a copy of all the 8 categories of documents that you were asked to retain (in the previous post). Include a covering letter and send the package via Regd. Post. Remember, the law states, until the car is in your name, you are responsible for it (even if the car is used for criminal activities or involved in a hit & run accident). Maintain the postal confirmation in your records. Once you receive delivery acknowledgement, you are indemnified of any liability related to the sold car. NOTE : In case, the buyer's address falls in the jurisdiction of another RTO, you will send an identical document set to them as well.

About Blacklisting of a vehicle:

I recently sold my Bullet. After doing all the formalities, I drafted a letter of intimation and sent to both the RTOs (Thane and Vashi) via AD post. Now, I did this after 2-3 days of handing over the papers to the seller. The seller in the meantime had took help of an agent and already started the transfer process.

After few weeks, the seller contacted me saying that your vehicle is blacklisted in Vashi RTO (where I reside). Thane RTO had given a form kind of thing on which it was written "Blacklisted Vashi RTO". Now they didn't mention any kind of reason as in why the vehicle is blacklisted. I was quite surprised to see such a remark as my vehicle was absolutely clean without any kind of accidental history or any other altercation. Very next day I visited RTO with that form. Went there with a contact, the RTO guy took my papers (NOC etc) and came back after 20 minutes saying why on earth did you lodge a complaint. I was shocked. I denied. He showed me a printout on which it was written, vehicle blacklisted and under complaint column, intimation of transfer.

Now what exactly happened here?

Seller's agent handed over the papers at Thane on x date. But, my letter which was sent by AD post, reached before the seller's papers! The moment Vashi RTO received the letter, they checked in their system and found that the vehicle is not yet transferred (Obviously since transfer papers were yet to be processed). Fearing misuse, Vashi RTO blacklisted my vehicle in their system (ofcourse without checking the NOC dates). Later when Thane RTO started the process, their system notified about the blacklisting (apparently systems are centralized) and they halted the process.

Luckily for me, because of contact, I managed to get the blacklisting removed on the spot (without paying any bribe). The person handed over the printout and told me give it to seller and everything will be ok. This is what he said - Letter of intimation is a good practice, however do not send the letter so soon. Wait for atleast minimum of 15 days to 1 month and then only send such letter. Things at RTO move at their own pace. And since systems are centralized any notification is acted upon instantly.

What would have been the process if I didn't have a contact?

You have to draft another letter saying why you took such an action of intimation. Prepare affidavit, present the case in front of officer etc etc. This can take anywhere between 4-5 visits and 15 days. Now I cant verify this process as I don't think such things are documented anywhere. This is what the RTO guy told me.

In a nutshell, once the sale is done, wait for a month to send intimation letter. Or atleast make sure to note the date when seller submits the papers in his RTO, then send a letter keeping 5-6 days of gap in between.

[aviraj]

Is there a need to prepare a notarized/registered vehicle sale agreement while selling the car or is a delivery note enough to relinquish ownership on as-is where-is basis? I dont believe it was mentioned in the original article. Any standard templates to use for that?

[subbaraomr]

I have a car registered in Pune but I have shifted to bangalore. The car is being driven in Pune as my son is using it.
1. Do I have to change the address to Bangalore?
2. Can I change the address to bangalore while showing as used in Pune?
3.When I sell will I need the original invoice from Maruti to the first buyer? What documents do I need?

[hserus]

Originally Posted by subbaraomr

I have a car registered in Pune but I have shifted to bangalore. The car is being driven in Pune as my son is using it.
1. Do I have to change the address to Bangalore?
2. Can I change the address to bangalore while showing as used in Pune?
3.When I sell will I need the original invoice from Maruti to the first buyer? What documents do I need?

As the car is in Pune with your son sell it in Pune itself.

Leave the address alone. You won't need the invoice.

[aspire]

Hi,

Is there a way to check if there are any police cases on a vehicle, which has been put up for sale, say in Bangalore?

I can check traffic fines, but police case?

Regards
Shailesh

[hserus]

Originally Posted by aspire

Hi,

Is there a way to check if there are any police cases on a vehicle, which has been put up for sale, say in Bangalore?

I can check traffic fines, but police case?

Regards
Shailesh

Drop in at your local police station and ask.
If there is a police case and/or the car is superdari that is subject to any court proceeding, the RTO transfer will not go through.

[aspire]

Thanks Suresh, so seems this cannot be found online then, sadly.

[sumeethaldankar]

I have received only a delivery note from my dealer for the sale of my used car. The note states that all responsibility of the car lies with the dealer in case of accident, repair etc. Is this enough or should I send a copy of this note to the RTO ?

[mayankk]

Originally Posted by sumeethaldankar

I have received only a delivery note from my dealer for the sale of my used car. The note states that all responsibility of the car lies with the dealer in case of accident, repair etc. Is this enough or should I send a copy of this note to the RTO ?

A notarized sale deed is necessary if you want to be relived of liability.
Read here, and get it done:

[hserus]

Originally Posted by mayankk

A notarized sale deed is necessary if you want to be relived of liability.
Read here, and get it done:

This is ok along with a copy of whatever sale paperwork (delivery note, receipt) you have. https://transport.maharashtra.gov.in...R/form_tcr.pdf

[sumeethaldankar]

In my case the buyer is the dealer and not a person. So in whose name will I transfer the vehicle and insurance? Also delivery note is all I got. When the dealer sells the car to someone it will probably be transferred in his name right. In the mean time what must I do to absolve myself from any liability?

[PetrolRider]

A difficult situation for those who exchanges existing car with dealer during new car purchase. Even more difficult for those with not so popular cars. Like many, I too ended up with a dealer note and credit note for my Micra from the Hyundai dealer (H-promise).


A lot has been said about legal liability during the period that the car stays with the dealer. I was thinking even in case legal liabilities are unavoidable, can a continuing of 3rd party insurance absolves future financial implications risen due to those legal liabilities? Most legal liabilities hardly end up with prison term, but mostly with compensation. If a 3rd party insurance takes care of that part during the car at dealership, it might be a good option to have peace of mind.

[S_U_N]

Originally Posted by mayankk

A notarized sale deed is necessary if you want to be relived of liability.
Read here, and get it done:

1. Is this 'sale deed' the substitute of the 'delivery note' on page 1 of this thread? Or is this a separate document to be prepared on a Rs. 100 stamp paper and then notarized? If yes, how much is the approximate cost for this step?

2. That link above states that 2 originals are needed for Form 29 and Form 30. However, page 1 of this thread only mentioned 1 original. So, is this additional original a new requirement for RTO?

Originally Posted by Dodge_Viper

About Blacklisting of a vehicle:

.....I drafted a letter of intimation and sent to both the RTOs (Thane and Vashi) via AD post.

Thank you for sharing this. When you say 'intimation', did you fill up 'Form TCR' which is the actual intimation format or was it just a letter in some other format (e.g. cover letter specified in page 1 of this thread).

Three more questions:

1. Has anyone used this website during the transfer of ownership phase (e.g. when selling your car?) https://parivahan.gov.in

2. Is there anything required to be done as a seller if the vehicle has third-party insurance?

3. I am in the process of selling my car to someone in another city [Pune --> (say) Ahmednagar]. Is it correct that I need 'to retain with seller' 3 copies of documents - one for myself, one for Pune RTO and the third for A'Nagar RTO?

[Dodge_Viper]

Originally Posted by S_U_N

Thank you for sharing this. When you say 'intimation', did you fill up 'Form TCR' which is the actual intimation format or was it just a letter in some other format (e.g. cover letter specified in page 1 of this thread).

Normal letter on plain A4 sized letter. Attached all photocopies. All forms, NOC, buyers Id and my ID.

Originally Posted by S_U_N

3. I am in the process of selling my car to someone in another city [Pune --> (say) Ahmednagar]. Is it correct that I need 'to retain with seller' 3 copies of documents - one for myself, one for Pune RTO and the third for A'Nagar RTO?

Basically you will retain photocopies of all documents. One for Pune RTO and A'Nagar RTO are the copies which you will attach with your intimation letter.