When a used car changes hands, transferring the RC is only one part of the process. The insurance policy should also be updated in the new owner’s name. If the RC transfer is complete but the insurance still shows the previous owner, the records do not match.
This can create issues during policy servicing or claim assessment. The buyer should therefore contact the insurance provider, complete the required transfer formalities and make sure both documents reflect the same ownership details.
Contact the Insurance Provider Immediately
The first step is to inform the existing insurance provider that the RC has already been transferred. The buyer should request transfer of the car insurance policy into their name instead of waiting for renewal.
The buyer should:
- Share the transferred RC copy.
- Provide the existing policy details.
- Submit the required transfer request.
- Ask whether additional documents are needed.
Apply for Insurance Transfer within the Required Period
Under Section 157 of the Motor Vehicles Act, the buyer should apply to the insurance provider within 14 days from the date of vehicle transfer for the necessary changes in the policy.
Once the RC transfer is complete:
- Note the effective date of ownership transfer.
- Check whether the 14-day period is still running.
- Submit the transfer request without delay.
- Follow up until the endorsement is issued.
Get the Policy Endorsed in the New Owner’s Name
The insurance provider updates the policy through an endorsement or the applicable transfer process. This changes the insured details from the seller to the new registered owner.
The buyer may need to:
- Complete a proposal or transfer form.
- Submit identity and address documents where required.
- Provide the transferred RC.
- Share the existing policy document.
- Pay any applicable premium adjustment.
Be Careful about Own Damage Claims during the Delay
If the vehicle suffers damage while the RC is in the buyer’s name but the policy has not been transferred, an own damage claim can face difficulty. The provider may check whether the transfer requirements were completed within the prescribed period.
If an incident occurs:
- Inform the insurance provider immediately.
- Share the updated RC and purchase documents.
- Explain the transfer status clearly.
- Follow the claim instructions provided.
Claim approval remains subject to the policy terms and the circumstances of the loss.
Do Not Rely Only on the Existing Third Party Cover
The law provides for deemed transfer of the insurance certificate and policy when vehicle ownership changes, but the buyer must still apply for the required changes within the prescribed period. The practical step is to complete the car insurance transfer rather than continue using a policy that still shows the seller.
The buyer should:
- Get the new owner’s name recorded in the policy.
- Check the revised policy after endorsement.
- Verify the vehicle number and ownership details.
- Keep the updated document safely.
This keeps the insurance record aligned with the RC.
Check How the No-Claim Bonus Is Handled
The seller’s no-claim bonus does not automatically pass to the buyer with the car. NCB belongs to the insured person, so the insurance provider may need to adjust the policy when ownership changes.
During the transfer:
- The provider may review the existing NCB.
- A premium adjustment may be required.
- The buyer should check the revised premium.
- The seller can follow the applicable process for retaining their NCB.
Verify the Updated Policy after Transfer
Once the transfer is processed, the buyer should check the revised policy carefully. The owner’s name, registration details and policy information should match the vehicle records.
Check that the policy shows:
- The correct owner’s name.
- The correct registration number.
- The correct policy validity dates.
- The appropriate type of cover.
- Any applicable add-ons or endorsements.
If anything is incorrect, ask the provider to update it promptly.
Final Thoughts
If the RC has already been transferred but the insurance still shows the previous owner, the buyer should complete the policy transfer without delay. Contact the insurance provider, submit the required documents and make sure the revised policy carries the correct ownership details.
It is also important to check any premium adjustment and verify the updated policy carefully. Keeping the RC and car insurance records aligned can make future renewals, servicing and claim related processes much simpler.
