Team AckoJul 22, 2021
Two-wheelers (motorcycles/scooter/mopeds) in India need a motor insurance cover to comply with the legal requirements. The vehicle owner can purchase the Comprehensive Two-wheeler Insurance Policy for broad coverage, including, Third-party and Own Damage cover. One of the crucial points to be noted is that the insurance policy is for the asset, the two-wheeler. So, the answer to the question, what happens to a two-wheeler insurance policy when the policyholder dies, depends on what happens to the two-wheeler.
Life is unpredictable, and the policyholder's death is a tragic event for the policyholder’s family. It takes some time to recover from the loss emotionally. Once you have emotionally recovered from the loss, some critical paperwork is to be dealt with, and bike insurance is one of them. Read ahead to know the procedure involved concerning a bike insurance policy in case of an untimely death of the policyholder.
In the case of the policyholder's death, the ownership of the two-wheeler is transferred to their legal heir. Consequently, the two-wheeler insurance policy also needs to be transferred to the same person’s (legal heir) name, provided the policy is still active. If the bike insurance policy is expired, the legal heir can renew the policy in their name or purchase a new Third party or Comprehensive Bike Insurance Policy.
To transfer the bike insurance policy, one needs to follow a few procedures and furnish the required documents. More importantly, the legal heir must inform ACKO at the earliest about the transfer of the bike insurance policy after the policyholder's death.
A two-wheeler insurance contract involves two parties: ACKO (insurance company) and the policyholder. However, other parties are also involved while transferring bike insurance after the death of the policyholder. Below is the list of entities involved in the transfer of bike insurance.
ACKO (insurer) must be informed about the death of the policyholder at the earliest. It will help ACKO modify the policy details, other related information and issue a new policy document to the legal heir upon the transfer of the policy.
If the policyholder has specified a nominee while purchasing the policy, ACKO (insurer) can directly transfer the policy to their name. If no nominee is mentioned in the policy, the policyholder's legal heir can carry out the policy transfer procedure.
Before the insurance transfer, the nominee must approach the RTO (Regional Transport Office) for the RC (Registration Certificate) transfer. In addition, the vehicle registering authority may also need a NOC (No Objection Certificate) from the bank/financial institution if the two-wheeler has an active loan.
Below is the list of required documents for RC transfer.
Chassis imprint of the two-wheeler
Two-wheeler insurance policy certificate
NOC from the bank (If required)
Details of the two-wheeler along with sales certificate
Legal heir’s identity proof (Aadhaar Card, Voter ID, etc.)
Legal heir’s address proof (Aadhaar Card, Ration Card, Passport, etc.)
Application for transfer of ownership (Form 31)
Form 29 and Form 30 (If required)
Typically, there are two common scenarios of natural succession in the case of a policyholder's death. Below are the details.
The partner can become the legal heir in the case of the death of the spouse. As per natural succession, the policy can be transferred to their name. In most cases, the policyholder will mention their spouse as the nominee in the policy document. The process of policy transfer is more straightforward if the nominee and the legal heir are the same. You can also check the nominee details by contacting ACKO if the policyholder is no more.
The two-wheeler insurance could be transferred to the child, if the deceased policyholder is a single parent. If the deceased policyholder has more than one child, one can choose the legal heir via due process. However, if the child’s name is mentioned as the nominee in the policy document, the transfer process becomes easier.
If the policyholder is single, the insurance plan can be transferred to the specified nominee or the legal heir.
The deceased policyholder’s legal heir can submit the following documents to transfer the two-wheeler insurance to their name.
Death Certificate of the policyholder
Two-wheeler insurance policy document
RTO forms for policy transfer
PUC (Pollution Under Control) Certificate
NOC from the bank (If the two-wheeler has an active loan)
Marriage Certificate (If the spouse is the legal heir)
An affidavit attested by a Notary stating the bike insurance can be transferred to the legal heir’s name
Self-attested Aadhaar or PAN Card copy
There are a few crucial points that you should keep in mind while initiating the two-wheeler insurance transfer process. Below are the essential points regarding bike insurance transfer.
Determine the legal heir of the deceased policyholder without conflict.
Contact ACKO (insurance company) for the change of name in the policy document at the earliest.
Approach the RTO for RC transfer at the earliest.
Compile all the required documents
Do not ride the two-wheeler if the bike insurance policy has lapsed.
Take help from a professional lawyer (If required).
The transfer of a bike insurance policy is a simple process, provided you have all the required documents. The nominee or the legal heir of the deceased policyholder should complete all the necessary formalities for policy transfer as soon as possible. Lastly, avoid riding the two-wheeler before the insurance transfer to avoid any penalties..
Below are some of the most frequently asked questions and answers related to two-wheeler insurance transfer after the policyholder's death.
Is it necessary to transfer the RC (Registration Certificate) before the two-wheeler insurance policy transfer?
Yes, it would be best if you transferred the RC at the earliest in the case of the policyholder's death. Post that, you can go ahead with the policy transfer process. However, you may also inform ACKO about the demise of the policyholder at the earliest.
What happens if the deceased policyholder has not specified the nominee for the bike insurance policy?
If the deceased policyholder has not mentioned the nominee for the policy, the insurance plan can be transferred based on natural succession (typically spouse or children).
What if the two-wheeler insurance policy has lapsed at the time of the death of the policyholder?
If the bike insurance plan has expired and the policyholder is no more, the nominee or the legal heir can renew the policy in their name. Alternatively, the legal heir can also purchase a new two-wheeler insurance policy.
Can the two-wheeler insurance be transferred to the deceased policyholder’s child?
Yes, the bike insurance can be transferred to the child if the deceased policyholder was a single parent. However, if the spouse survives the deceased policyholder, then the policy can be transferred to the spouse.
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