How to Transfer Car Insurance Ownership: A Step-by-Step Guide

Why Is Car Insurance Transfer So Important?

When a car changes ownership, so should the insurance — it’s not just a best practice, it’s the law.

Here’s why it matters:

• Legal compliance: The Motor Vehicles Act mandates valid car insurance for all vehicles on the road.
• Claim eligibility: If the insurance isn’t transferred and an accident occurs, the claim can be denied.
• Liability coverage: Without proper car insurance transfer protection, the previous owner may still be held liable in case of third-party claims.
• Peace of mind: Both parties can move on confidently post-sale with all formalities completed.

Step-by-Step Guide to Car Insurance Transfer

Let’s break down the process so it’s easy to follow whether you’re the buyer or seller.

Step 1: Transfer the Vehicle Ownership

Before insurance can be transferred, you need to transfer the vehicle registration certificate (RC) to the new owner's name. Here’s how:

Visit your local RTO with documents like:

• Original RC
• Sale affidavit
• Form 29 and Form 30
• Pollution Under Control (PUC) certificate
• Copy of car insurance
• ID proof of buyer and seller

Pay the ownership transfer fee and submit the documents.

Get the updated RC in the buyer’s name.

Pro Tip by Jio Insurance Broking: Make sure the RC is updated before starting the insurance transfer process. Insurance companies need this as proof of new ownership.

Step 2: Inform the Insurance Company

Next, inform the insurer (within 14 days of the sale) about the ownership change and your intent to transfer the policy.

The buyer will need to submit:

• New RC (or a copy of the RC transfer application)
• Existing insurance policy document
• Sale agreement
• Car inspection report (may be required)
• Identity & address proof
• Passport-sized photographs

Once verified, the insurance will be endorsed in the new owner’s name.

Step 3: Get a No Objection Certificate (NOC) from the Seller

The buyer may need a No Objection Certificate (NOC) or a declaration from the seller that they have no objection to transferring the car insurance policy. This makes the process smoother with the insurer.

Step 4: Pay the Transfer Fee and Endorsement Charges

Insurance companies usually charge a nominal fee (₹200–₹500) for transferring the insurance. Some insurers might also inspect the vehicle before issuing the new policy document in the buyer's name.

Once the fee is paid and documents approved, the insurance endorsement certificate is issued.

Step 5: Update/Add Own Damage Coverage (Optional)

If the existing policy is third-party only, or if the buyer wants to enhance protection, they can opt for:

• Comprehensive coverage
• Zero depreciation add-ons
• Engine protection
• Roadside assistance

Jio Insurance Broking recommends evaluating your driving patterns, location, and budget to choose the right add-ons for maximum car insurance transfer protection.

What Happens If You Don’t Transfer the Insurance?

If you skip this crucial step, here’s what can go wrong:

• Claim rejection in case of damage or third-party liability.
• The previous owner is legally liable for accidents involving the vehicle.
• Violation of the Motor Vehicles Act, leading to penalties or fines.

How Jio Insurance Broking Can Help

Jio Insurance Broking simplifies this entire process with its expert advisors and digital-first approach. From policy selection to document submission, we provide guidance and support at every step.

Here’s how we help:

• Quick comparison of car insurance plans
• Dedicated support for policy transfers
• Seamless add-on selection based on your needs
• Fast document processing and updates

Whether you’re buying a pre-owned vehicle or selling one, Jio Insurance Broking ensures that your car insurance transfer protection is complete, compliant, and stress-free.

Transferring car insurance might seem like a small step, but it holds big consequences if ignored. Ensuring that the insurance moves seamlessly from seller to buyer is not just about compliance — it’s about safety, trust, and financial protection.

At Jio Insurance Broking, we’re here to guide you through every step, so your car ownership journey starts (or ends) on the right foot.