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Complete Guide to Filling and Submitting a Motor Insurance Transfer Form

Complete Guide to Filling and Submitting a Motor Insurance Transfer Form

September 1, 2026
8:19 am

Second-hand vehicle purchases are common in India mostly due to affordability. When you buy a used vehicle, you must make sure to collect all necessary documents. The list includes insurance papers. As the vehicle’s ownership is transferred, the previous owner’s policy becomes invalid, and the insurance is to be transferred to the new owner’s name.

Filling out and submitting the motor insurance transfer form is a crucial step in this entire process of selling and buying a used vehicle.

In this article, we will guide you through the process of motor insurance transfer form filing. We will also discuss important details about No Claim Bonus (NCB) transfer and mistakes to avoid when going through the transfer.

Important to Note

Section 146 of the Motor Vehicles Act 1988 mandates that vehicles on Indian roads hold a valid license. This rule applies for second-hand purchases as well. Generally, the existing insurance policy gets transferred from the old owner to the new owner.

Under Section 157 of the Motor Vehicles Act 1988, it is mandatory to transfer the insurance policy within 14 days of a second-hand purchase. Failing to do this can result in claim rejection and the accumulation of risk factors.

What is a Motor Insurance Transfer Form?

A motor insurance transfer form is a formal application that a person has to submit to an insurance company to update the policyholder’s name. This eliminates the need to purchase a new policy and simply shifts the existing one to the new owner’s name.

This transfer is not automatic and has to be done manually within 14 days from the date of the vehicle transfer. Also, you should know that automatic transfer is only applicable to third-party risks under Section 157, and it does not cover any issues of own damage. You can have the insurance coverage on own damage only after completion of the formal transfer procedure.

Good to Know

Who is Responsible for the Motor Insurance Transfer?

As explained under Section 157, the old owner, or the person selling the car, is responsible for the transfer.

Does the Policy Cover Remain Active During the Transfer?

The third-party coverage remains active as it is automatically transferred with the vehicle transfer.
The own damage cover stays inactive and becomes active only after the insurance transfer is complete.
The third-party coverage can also become inactive if the transfer isn’t complete within the 14-day period.

Why is Transferring Motor Insurance Necessary?

If you skip the motor insurance transfer form, it exposes both you and the seller to serious consequences:

Claim Rejection for the Buyer: According to IRDAI guidelines, an insurance policy should have the exact same name and address as mentioned in the vehicle’s registration certificate. Not abiding by this can result in claim rejection.
Liability Risk for the Seller: Until the insurance is formally transferred, the seller may continue facing liability, as courts have upheld the same in multiple cases.
Legal Penalties: After the 14-day window lapses, driving without a transferred or fresh policy legally equals driving without insurance. Hence, it is a punishable offence attracting a fine of ₹5,000 for the first offence and ₹10,000 for subsequent offences, along with potential imprisonment of up to 1 year.

Step-by-Step Guide to Filling and Submitting a Motor Insurance Transfer Form

This process is similar to the registration certificate transfer at the Regional Transport Office (RTO), except that the insurer is involved separately. Note that both are equally important, and one can’t substitute the other.

Step 1: Begin with the RC Transfer

Before the insurer makes any changes to the policy, the RC transfer should already have been processed. Visit the nearest RTO and submit forms 29 and 30 with valid address proof, passport-size photographs, and a thumb impression signed by a gazetted officer or notary. This takes a maximum of 3 weeks.

You can also complete the RC transfer online via the Parivahan Seva website.

Step 2: Inform the Insurer

Once your RC is initiated, you need to inform the insurer about this change in ownership. The seller has to provide the insurer with the buyer-seller agreement and Form 29. Next, the buyer submits a formal transfer request along with supporting documents. Most insurers accept this notification online via their customer portal.

Step 3: Fill in All the Details of the Motor Insurance Transfer Form

The buyer then submits the motor insurance transfer form directly to the insurer. This needs the vehicle registration number, current insurance certificate number, and the new owner’s name. The insurer will use this information to formally transfer insurance rights to the buyer and levy applicable transfer fees.

Step 4: Submit the Required Documents

You will need to submit the following documents alongside the motor insurance transfer form:

Original RC (or RTO acknowledgement of transfer in progress)
RTO receipt for Forms 28, 29, and 30, signed by both buyer and seller
No Objection Certificate (NOC) from the previous owner
Passport-size photographs of both buyer and seller
Copy of the existing insurance policy
Vehicle inspection report issued by the insurer

Step 5: Vehicle Inspection

A physical inspection of the vehicle can be done by the insurer before they approve the transfer, especially for older vehicles. This is a standard procedure and is not meant to delay the process further, provided you submit all the required documents in order.

Step 6: Updating the New Policy and Issuing the Same

The insurer endorses the policy after the verification and updates the name, address, and contact details to reflect the new owner. Hereafter, a new policy document is issued in the name of the new buyer.

Common Mistakes to Avoid When Submitting a Motor Insurance Transfer Form

There are a few common mistakes that people make while submitting a motor insurance transfer form. This can further delay the process.

The table below highlights those mistakes that you need to avoid:

Mistake	Consequence
Missing the 14-day deadline	Own-damage cover becomes invalid; even third-party cover lapses after this window
Skipping the RC transfer first	Insurers will not process the motor insurance transfer form without an updated RC or at least an RTO acknowledgement
Assuming third-party cover transfers automatically	Only third-party liability transfers automatically for the first 14 days; comprehensive and add-on covers must be transferred separately
Incorrect details on the transfer form	Any discrepancy between the actual and reported information — vehicle number, owner name, or policy number — can be treated as misrepresentation and lead to claim rejection
Seller not obtaining an NCB retention letter	NCB is attached to the owner, not the vehicle; sellers must request an NCB certificate from the insurer to carry the discount forward to their next policy.
Incomplete document submission	Submitting the motor insurance transfer form without all required documents, particularly Forms 28, 29, and 30, delays the endorsement process and may leave the buyer without valid own-damage cover

What Happens to the No Claim Bonus (NCB) After a Motor Insurance Transfer?

According to IRDAI, it is the insured person who receives the NCB and not the vehicle. The buyer starts to build their NCB from scratch.

The previous owner should request an NCB retention certificate from the insurer after the immediate sale. This document has the accumulated claim-free years, and the previous owner can use it for their next vehicle.

If a comprehensive policy lapses for over 90 days, the accumulated NCB benefit is also lost. Sellers should obtain the retention certificate before the policy expires to avoid forfeiting years of accumulated discounts.

Conclusion

Transferring motor insurance is a legally binding step that protects both buyer and seller after a vehicle changes hands. Missing the 14-day window, skipping the RC transfer, or submitting incomplete documents can result in claim rejection or uninsured liability.

Understanding each step, from notifying the insurer to securing the NCB retention certificate, helps avoid complications that are entirely preventable. With IRDAI regulations clearly defining responsibilities for both parties, the process is straightforward when approached with the right documentation and timelines.

FAQ's

Is it mandatory to transfer motor insurance when buying a second-hand vehicle?

Yes, under Section 157 of the Motor Vehicles Act, 1988, the buyer must submit the motor insurance transfer form to the insurer within 14 days of purchase. Failing to do so renders the own-damage cover invalid and can result in claim rejection.

Can the buyer drive the vehicle before the motor insurance transfer form is processed?

For the first 14 days, third-party cover is automatically extended to the new owner under Section 157 of the Motor Vehicles Act, 1988. Own-damage cover, however, is not active until the policy is formally endorsed in the buyer’s name.

What happens if the motor insurance transfer form is submitted after the 14-day window?

Once the 14-day window lapses, the automatic third-party cover ceases and driving the vehicle is legally equivalent to driving without insurance. The buyer may face fines of ₹5,000 for the first offence and ₹10,000 for subsequent offences, along with potential imprisonment of up to 1 year.

Does the seller lose the No Claim Bonus (NCB) after transferring the policy?

No, as per IRDAI guidelines, NCB belongs to the policyholder and not the vehicle, so the seller retains it after the transfer. The seller must request an NCB Retention Certificate from the insurer, which remains valid for three years from the policy expiry date.

Can the buyer switch to a different insurer instead of transferring the existing policy?

Yes, the buyer can opt for a fresh policy from a different insurer instead of transferring the existing motor insurance policy. In this case, the seller should cancel the existing policy and request a refund of the unused premium for the remaining policy period.