Selling a car is not only about payment and paperwork. The insurance policy also needs to move to the buyer, so the insurer’s records match the new owner’s Registration Certificate (RC). If the policy remains in the seller’s name, future renewals and policy communications may become unclear.
This article explains the correct transfer process in India, including how to start a request through car insurance online facilities and which documents are commonly required.
Step-By-Step Process to Transfer Car Insurance
Insurance transfer is usually done as a policy update called an endorsement, issued by the insurer. Completing it soon after the sale can reduce follow-ups and avoid mismatched records.
Step 1: Complete the Vehicle Ownership Transfer
Start with the ownership transfer at the Regional Transport Office (RTO). Submit the prescribed transfer forms so the buyer’s name can be updated on the RC. Keep copies of the sale agreement or delivery note and the RTO acknowledgement, as insurers often request proof that the ownership transfer has been initiated. If the vehicle is financed, a No Objection Certificate (NOC) from the financier and related forms may also be required.
Step 2: Inform the Insurance Company About the Sale
Inform the insurer promptly after the sale is finalised. Share the policy number, vehicle registration number, sale date, and the buyer’s basic details. It is advisable to submit the request in writing through email, a customer portal, or a branch acknowledgement, so there is a trackable record. The insurer can then confirm the required forms, fees, and the expected processing steps.
Step 3: Apply for Car Insurance Transfer
Submit a formal transfer request to the insurer with the relevant documents. Many insurers allow the request to be raised through car insurance online channels, while some may require physical submission.
If the policy includes own-damage cover or add-ons, confirm whether they can continue under the buyer’s name and whether any additional approval is needed. Where applicable, clarify how the No Claim Bonus (NCB) is treated, as it is generally linked to the policyholder and insurer rules.
Step 4: Share Vehicle and Buyer Details With the Insurer
For a smooth transfer, complete and accurate details must be shared with the insurer. These details include the updated registration certificate, the previous registration copy, the sale paperwork, and the identity and address proofs of the buyer. It is important to check that the chassis number, engine number, and spelling of the buyer’s name on the form match the registration certificate so that the policy records remain consistent.
Step 5: Vehicle Inspection (If Required)
In some cases, the insurer may decide to inspect the vehicle before endorsing the policy in the buyer’s name. This is more common where there is a gap between the sale and the transfer request, or when the policy includes own damage cover along with third-party car insurance. During inspection, the insurer’s representative verifies the vehicle’s condition, accessories, and identification numbers, and may record photographs for internal records.
Step 6: Pay Applicable Transfer Charges
Insurers may apply a fee for endorsement and administrative processing. Pay the applicable charges through the insurer’s approved payment modes and keep the receipt or reference number. If any premium adjustment is required, the insurer typically communicates the payable amount before issuing the updated schedule. An agreement between buyer and seller on who pays these charges can also reduce friction.
Step 7: Receive the Updated Insurance Policy
After the insurer processes the transfer request, an updated schedule or endorsement is issued showing the buyer as the policyholder. The buyer should review this document to confirm that personal details, vehicle details, policy period, and cover type are all correctly mentioned. Keeping a digital copy on the phone and a printed copy in the vehicle helps prove that insurance is valid.
Required Documents for Car Insurance Transfer
Having all documents ready before approaching the insurer helps the transfer move faster and with fewer queries. The insurer may seek additional paperwork in special cases, but the following are commonly asked for in routine transfer requests.
- Copy of the existing car insurance policy schedule
- Signed request form for transfer or endorsement
- Updated RC copy, or RTO transfer receipt/acknowledgement
- Sale agreement, delivery note, or sale receipt
- Form 29 and Form 30 copies, where applicable
- Buyer’s identity proof and address proof for KYC
- Passport-sized photograph of the buyer, if requested
- Financier NOC documents, if the vehicle is financed
- Inspection report or photographs, if requested by the insurer
Conclusion
Transferring car insurance when selling a car helps keep the policy aligned with the new owner’s RC and contact details. Completing the RC transfer, informing the insurer quickly, and submitting accurate buyer and vehicle details can support faster endorsement processing. Once the updated schedule is received, checking each field can reduce issues during renewal or policy communication. Where available, car insurance online options can be used to raise the request and track its progress, while ensuring documents remain complete and consistent.
