Consequences of Ignoring Transfer of Insurance for Used Bike

  • Author :
  • TATA AIG Team
  • Published on :
  • 05/12/2023

In today’s fast-paced world, the need for personal vehicles for daily commutes is at its peak. Whether it be a two or four-wheeler, owning a vehicle is a significant accomplishment for everyone.

You can choose to buy a brand-new bike or a second-hand bike to fulfil your dreams. The important thing to remember in either case is to have valid two-wheeler insurance for your bike.

In case of new purchases, buying new insurance for a two-wheeler is easy with quick online and offline methods. However, when you purchase a used bike, you must ask the owner for the transfer of bike insurance. Failure to transfer bike insurance to a new owner can bring about many consequences.

In this blog, we will give you a detailed insight into why it is essential to complete a bike insurance transfer at the time of selling your bike, how it helps, and how to complete the transfer online.

Why Should You Not Ignore Transfer of Bike Insurance

The consequences of ignoring bike insurance transfers can be harmful, especially for the new owner. It is a mandatory step, as failure to do so can result in no financial support in times of unexpected accidents or other unforeseen circumstances.

Here is a list of potential consequences.

Loss of Insurance Cover

The immediate consequence of neglecting a bike insurance transfer is loss of insurance cover. In such a situation, the bike is left without any protection, increasing the financial burden of repair and replacement for the new owner.

Without a proper transfer, only the original bike owner is protected. So, any case of damage, theft, or accident can be financially draining for the new owner, making it an unfavourable situation.

Legal Problems

Third-party bike insurance is mandatory by law. Without it, the owner of the bike can be penalised or face imprisonment for a minimum of 3 months. Therefore, a new owner needs to receive a bike insurance transfer from the existing owner to drive the second-hand bike on the road.

Financial Penalty

As mentioned above, third-party insurance is mandatory. However, for complete protection against accidental damage and theft, most bike owners invest in a comprehensive insurance plan.

Therefore, in case the new owner is found riding the bike without valid insurance, especially third-party insurance, they might have to pay a minimum of ₹2000 as a penalty. This amount can vary from state to state.

Loss of No Claim Bonus

Many bike owners purchase a No-Claim Bonus cover with a comprehensive bike insurance plan. Under this cover, they get the benefit of a discounted premium amount at the time of insurance renewal.

This benefit is lost if there is a break or delay in bike insurance transfer from the old owner to the new one. Moreover, in most cases, claims can only be filed once proper insurance is transferred.

Rejection of Future Claims

Completing the process of the bike insurance name change is crucial to ensure all future claims are more straightforward, as without the transfer, there might be gaps in the ownership flow.

This can result in a challenging claim process and increase the chances of rejection for the new owner. In some instances, there can be significant delays and other complications for claim approvals.

List of Documents Necessary When Purchasing Used Bike

Let us discuss the list of documents necessary to purchase a used bike successfully. Always ensure all of these documents are available with the owner. Also, remember that the official transfer of bike ownership can only be completed at the RTO.

The first important document is the registration certificate or RC of the bike. Without a valid registration, the ownership of the bike cannot be shifted to a new owner.

Bike insurance is another mandatory document necessary at the time of purchasing a used bike. The owner has to transfer the name on the insurance from theirs to the new owner as without it, the new owner cannot ride the two-wheeler on the road and can attract financial and legal complications.

Comprehensive and own-damage insurance plans are choice-based investments, but third-party insurance is necessary.

The Pollution Under Control Certificate or vehicle PUC is also a compulsory document that needs to be handed over to the new owner. The PUC is made on the bike registration number and holds information on all the pollution-related rules followed.

Another list of documents necessary to transfer the ownership of the bike from the old owner to the new owner for RTO submission includes road tax payment proof of the past payments, no objection certificate from the old owner to confirm voluntary transfer, tax-related documents of the bike, etc.

How to Complete Two-Wheeler Insurance Name Transfer?

To complete a two-wheeler insurance name change, you need to first change ownership of the bike from the old owner to the new owner by submitting the necessary documents at RTO.

Follow the steps mentioned below to complete the Tata AIG bike insurance transfer.

Download a list of relevant forms from the RTO website or office.

Fill them up and submit them at RTO to receive a Clearance Certificate, which is necessary for insurance transfer.

Next, inform Tata AIG, the insurance provider, about the sale of the bike.

Take the bike RC, RTO clearance certificate, application form for the name change, No Objection Certificate from the old owner, old insurance document, and other required documents and submit them to the insurer.

Once submitted, pay the insurance transfer cost as requested to complete the transfer process.

Now, wait to receive the revised bike insurance with your name on your email address.

You can also complete the two-wheeler insurance name transfer online by visiting the official website of the insurance provider.


It is crucial to transfer your two-wheeler insurance policy to the new owner in case they purchase your used bike. Without a proper insurance transfer, the new owner can face legal consequences and pay a lot out of their pocket in case of an accident or other damage.

A bike insurance policy is a crucial necessity for every bike owner, regardless of whether the bike is new or second-hand. This insurance plan safeguards your bike from significant financial liabilities that can otherwise drain your liquidity.

Before choosing any bike insurance policy for your new or second-hand bike, explore the different options available by comparing them using a bike insurance calculator. We provide customisation flexibility for everyone to ensure there is a perfect insurance policy for each of you.

Explore today and protect your bike from accident, damage, and theft with Tata AIG.


How much does the process of insurance transfer cost?

For the transfer of bike insurance from the old owner to the new owner, most insurance providers limit the cost to ₹50. However, it is always better to cross-check all documents required and tentative charges to make an informed decision.

How much time is permitted to complete the bike insurance transfer from old to new owner?

Most insurance providers provide up to 14 days to transfer bike insurance from the old owner to the new owner. After this, any delay can incur higher costs, complications, and an approval period. Therefore, it is recommended to transfer the insurance at the earliest.

Can I buy new insurance on top of the existing bike insurance transferred from the old owner?

Once the insurance is transferred to the name of the new owner, all the responsibility and authority of policy renewals, customisations, and new upgrades are on the new owner. If you wish to add more riders to the existing policy or add a new policy purchase for your bike, you are free to do so.

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