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Consequences of Ignoring Transfer of Insurance for Used/Second Hand Bike

Team AckoJan 17, 2024

The consequences of not insuring your bike can impact your finances in case your vehicle meets with an accident or if it is damaged due to natural/man-made calamities or if it is stolen. To ensure you have financial coverage during these circumstances, you need to insure your bike with the comprehensive plan. When you buy a used bike, you need to transfer the motor insurance policy to enjoy continuity of the coverage. Read ahead to learn about the importance of transferring the Two-wheeler Insurance Policy to your name.




Effects of Ignoring Transfer of Insurance for Used Bike:

Used bikes cost you money, and you may have availed a loan or used your savings to buy the bike. You might have bargained and ensured that you get the best bike for the best price. Likewise, you need to ensure that the insurance is transferred to your name so that your two-wheeler is well-protected with the Comprehensive Bike Insurance Policy. Here are a few of the reasons to help you learn about consequences if you do not transfer the bike insurance to your name:

1. Invalid Bike Insurance Protection

Riding the bike with insurance in the name of the previous owner will only result in the rejection of your claims under the insurance plan. This is because the owner of the bike and the policyholder are different, hence, your claims will be rejected.

2. Being Ignorant Results in Claim Rejection

Being casual about not transferring the policy to your name may lead to non-qualification of claims in case of accidental damage or if the bike is stolen. If you are planning to buy a second-hand bike or have bought one, ensure you transfer the insurance to your name immediately to avoid unnecessary financial or legal hassles.

3. Can Lead to Problems for the Previous Owner

If the previous owner does not take the ownership to transfer the bike insurance to the new owner, there are legal problems that the previous owner will be liable for in the future. As a seller, it is important to transfer the insurance to the new owner immediately after selling the bike.

4. Financial Implications

Apart from the liabilities of your bike, third party liabilities can impact your finances. With invalid bike insurance for your used bike, any claims filed against the policy for accidental damage to third party life or property and to your bike will be rejected.

5. Liable for Penalty

Riding an uninsured bike is a traffic violation of government rules and regulations. In India, you have to pay the necessary penalty for riding a vehicle without valid motor insurance.

6. Face Imprisonment in Case Riding with Invalid Insurance

In case you are found riding a two-wheeler with invalid bike insurance, the traffic police can impose a fine and/or even imprisonment.

7. You Cannot File a Claim

As the owner of the bike, you cannot raise a claim against the policy since you are not the policyholder.

As mandated by law, a used or a new bike must be insured at least with the Third-party Bike Insurance Policy to ride the vehicle on public roads. Failing to insure your bike can lead to legal issues in case of an unfortunate accident involving a third party.

Documents to Check While Purchasing a Used Bike/Two-wheeler:

Below are the documents that you need to obtain from the previous owner while buying a used bike:

  • Registration Certificate of the bike.

  • Existing bike insurance policy.

  • Invoice of the bike purchased.

  • In case of an existing bike loan, obtain Form 32 and 35.

What Happens if the Vehicle Meets with an Accident Before Insurance Transfer?

Active vehicle insurance is a must while filing a claim against the policy. This means the insurance policy should not have expired and should bear the bike owner’s name as the policyholder. Here are the consequences of not transferring the insurance before an unfortunate accident occurs:

  • Claims will be rejected.

  • Impact on your finances.

  • Can lead to legal hassles in case a third party is involved in the accident.

  • Losing your peace of mind due to the unwanted stress of the mishap.

  • Damages to your bike which can cause long-term issues.

Also, read: Second Hand or Used Bike Insurance

In a Nutshell:

Whether you are buying a new or a second-hand bike, you must insure the bike with a comprehensive plan so that it covers both third party liabilities as well as Own Damage. Liabilities such as accidental damage, fire, theft, riots, third party liability is covered when you opt for the Comprehensive Bike Insurance Policy. By insuring your bike, it offers you the peace of mind knowing that you are financially well-protected in case of any unfortunate mishaps.

Frequently Asked Questions:

Below are the frequently asked questions about bike insurance for used or second-hand two-wheeler:

1) How to transfer bike insurance to another person’s name?


The process to transfer bike insurance to another person or to the new owner is simple if you follow the necessary steps. Ensure you get the policy transferred as soon as you buy the vehicle from the previous owner.

2) Can I transfer the bike Registration Certificate (RC) to the new owner without the two-wheeler insurance?


No, you will not be able to transfer the RC to the new owner without a valid or an active vehicle insurance policy. To change the ownership of the bike to the new owner, the Regional Transport Office (RTO) requires the valid and active two-wheeler insurance to initiate the ownership transfer.

3) Can the No Claim Bonus (NCB) be transferred to the new bike owner?


The NCB is a non-transferable discount since it was awarded to the previous owner for riding safely and for not raising any claims during the policy period. That being said, the previous or the existing owner can transfer the NCB to a new vehicle insurance policy.

4) What happens to my existing two-wheeler insurance when I sell it to the new owner?


The existing bike insurance will remain active until the expiry date of the policy under your name. It is imperative that you transfer the insurance to the new owner immediately so that you are not responsible for any liabilities caused by the new owner.

5) Which is the best bike insurance plan for second-hand bikes?


The comprehensive bike insurance plan is an ideal policy since it covers both the insured bike as well as third party liabilities. In case of theft, accidental damage, natural/man-made calamities or in case of losses to third party property or life, the Comprehensive Bike Insurance Policy is the right cover for your second-hand bike. The policyholder also has the option to choose from various add-on covers to enhance the coverage for your bike.

6) Is it mandatory to transfer the ownership of the bike in case it is being used by a legal heir?


Yes, you need to transfer the vehicle ownership to the legal heir as per the Motor Vehicle Act. It is important to transfer the ownership to the person using the vehicle especially if it is used by a legal heir.

7) Can the Third-party Bike Insurance Policy be transferred to the new owner?


Yes, you can transfer the Third-party Policy to the new owner.

8) Can I include add-on covers for my second-hand/used bike insurance?


Yes, you can buy several add-on covers along with the comprehensive plan to enhance the standard coverage of the policy.

9) Can I transfer the ownership of the bike to my name online?


No, you cannot transfer the vehicle ownership to your name online. You have to visit the respective RTO to complete the process of ownership transfer.

10) Is it possible to get the RTO’s No Objection Certificate (NOC) online?


Yes, you can apply for the NOC through the government’s Parivahan website to get the NOC. However, you need to visit the respective RTO to complete the process and receive the NOC for your bike.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.


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