Steps to Transfer Maruti Insurance When Buying a Used Car
When you buy a used car, there’s a lot to take care of. Transferring the ownership, service checks, paperwork, and more.
But amidst all this, one crucial aspect often goes unnoticed: transferring the car insurance policy. If you're purchasing a pre-owned Maruti vehicle, knowing how to transfer the Maruti Insurance correctly is essential to ensure continuous coverage and legal compliance.
Failing to perform this step results in both monetary loss as well as possible legal problems. As soon as you become the owner, your insurance policy needs to be changed.
Here’s a step-by-step guide to help you with a seamless new car insurance transfer process when purchasing a used Maruti car.
Why is it Important to Transfer Maruti Insurance?
According to the Motor Vehicles Act, 1988, it is mandatory for every vehicle on Indian roads to have a valid motor insurance policy. When you buy a second-hand vehicle, the policy held by the previous owner does not automatically cover you unless it is officially transferred.
Failing to transfer Maruti Insurance can result in:
● Rejected claims, especially under own damage coverage.
● Legal penalties for driving an uninsured car.
● Liability issues for both buyer and seller in case of an accident.
Moreover, while third-party cover with reputed insurers like TATA AIG General Insurance Company Limited remains active for up to 14 days post-sale, this does not include own damage or any additional riders. Therefore, obtaining the policy in your name is not only beneficial but also mandatory.
Step-by-Step Guide to Transfer Maruti Insurance
Step 1: Transfer the Car’s Ownership at the RTO
Before you deal with the insurance part, make sure the ownership of the vehicle is legally transferred at your nearest Regional Transport Office (RTO).
You’ll need:
● Original Registration Certificate (RC)
● Form 29 and Form 30 (duly signed by the previous owner)
● Address and ID proof
● Passport-size photographs
● Road tax certificate
Only once the new RC is issued in your name can you proceed with the insurance transfer.
Step 2: Notify the Insurer About the Sale
If the car is already insured, the seller must notify the insurer about the intent to sell. This begins the insurance transfer process.
Documents required:
● Application for policy transfer
● New RC (or receipt of transfer application)
● Copy of the existing insurance policy
● Sale deed or delivery note
● No Objection Certificate (NOC) from the previous owner
● An affidavit signed by both buyer and seller
● Identity/address proof of the buyer
● Request for vehicle inspection
Step 3: Undergo Vehicle Inspection
The insurer will schedule a vehicle inspection before approving the insurance transfer. This ensures the vehicle’s current condition is assessed and recorded.
The inspection may include:
● Physical check for damages
● Verification of odometer reading
● Cross-checking documents
Only after a satisfactory inspection report will the insurer process your transfer request.
Step 4: Receive the Endorsement Certificate
Once all documents are verified and the inspection is cleared, you will receive an endorsement certificate. This certificate updates the policyholder's name and confirms that the insurance is now under your ownership.
Note: With reputed insurers like TATA AIG General Insurance Company Limited, this process may take up to 14 working days. During this period, only third-party coverage continues to remain valid. Own damage cover and any add-ons will apply only after the endorsement is issued.
Step 5: Understand NCB Implications
One of the most common questions during an insurance transfer is about the No Claim Bonus (NCB). Many buyers believe they can inherit the NCB, but this is a misconception.
Here’s the truth:
● NCB is awarded to the policyholder (i.e., the driver/owner), not the car.
● The buyer cannot claim the seller’s accumulated bonus.
● The seller can retain their NCB by applying for an NCB retention certificate.
To apply for the NCB certificate, the seller must submit:
● Request for policy cancellation
● Copy of new vehicle registration
● Copy of the sale deed
● Original policy
● RTO forms 29 and 30
Benefits of Transferring New Car Insurance When Buying Used Maruti Vehicles
While new car insurance seems like a straightforward affair, transferring existing policies offers several advantages if you’re buying a used vehicle:
● Cost-saving: You may get residual coverage at a lower premium rate than opting for a new policy.
● Continuity of coverage: Immediate protection from financial liabilities and accidents.
● Add-on benefits: If the previous policy had zero depreciation, roadside assistance, or engine protection, these continue with the transfer.
● Avoid claim rejections: Claims raised under the untransferred policy can be legally rejected.
By completing the transfer in time, you maintain legal protection and peace of mind.
A second-hand Maruti vehicle stands as a great selection because it combines cost-effectiveness with ease of use and dependable performance. You should not delay the essential process of renaming Maruti Insurance in your ownership. Every stage in the process, from RC transfer to policy endorsement, ensures both financial security and legal compliance.
Insurance companies like TATA AIG provide straightforward insurance management options for customers. The new car insurance calculator enables you to check premiums instantly before you conduct online policy renewals without any paperwork uncertainty.
Frequently Asked Questions (FAQs)
1. Is insurance mandatory to transfer the RC?
An RTO RC transfer requires an active policy of car insurance. The RC stands as one of the crucial documents which authorities need for legal owner change confirmation.
2. Can I transfer Maruti Insurance without a vehicle inspection?
Vehicle inspections follow the mandatory procedures for insurance policy transfer. The assessment procedure helps establish the car's risk level and physical condition, which leads to the issuance of new policy endorsements.
3. How long does it take to transfer car insurance?
Inspection processes combined with necessary document submission dictate that the insurance transfer requires at least 14 working days before completion. The insurance policy period provides only basic third-party coverage benefits for those owners in this status.
4. What happens if I don’t transfer the insurance?
Insurance policy transfer entitlements disable your ability to submit claims, and the insurance policy does not extend coverage for accidents or damage incidents. The previous owner might also face responsibility for any liabilities that occur.
5. Can I get a fresh new car insurance policy instead of transferring the old one?
The purchase of new car insurance for a used automobile remains an available option. Moving the existing policy provides expedited service at lower costs while keeping beneficial add-ons intact.
*Standard T&C Apply
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
Claims are subject to the terms and conditions set forth under the motor insurance policy.
