In today’s article, we will know whether the insurance of the insured vehicle is also transferred on the sale? If yes, what should be done for that?
Often a person takes a new motor vehicle or according to his need and according to the availability of money, who is selling a few months or years old in exchange for a new one, after getting any medium or information, he contacts and buys that vehicle.
Buying a vehicle is not enough that the authorized owner of the vehicle has become the person who bought the vehicle, for that the person has to get the vehicle registered in his name. After vehicle registration comes the matter of insurance, it is mandatory for the vehicle to be insured.
Is the insurance also transferred on the sale of the insured vehicle?
The simple answer to this question is that yes, on the sale of the insured vehicle , its insurance will also be transferred in the name of the owner of the insurance vehicle after applying to the insurance company within the stipulated date.
In section 157 of the Motor Vehicles Act, 1988, a provision has been made regarding the transfer of the certificate of insurance.
Under sub-section 1 of section 157 of the Act, where any person who is the owner of a vehicle in whose favor a certificate of insurance i.e. insurance policy has been issued under the provisions of the Act, is transferred by him including his vehicle insurance policy to any other person. the certificate of insurance and the insurance policy mentioned in the certificate of insurance shall be deemed to have been transferred with effect from the date of transfer of the vehicle in favor of the person to whom the motor vehicle is transferred.
What needs to be done for change in transferred insurance policy?
Under sub-section 2 of section 157 of the Act, where the vehicle is transferred along with the insurance policy to any other person, the transferee i.e. in whose favor the vehicle with insurance is transferred shall be issued a certificate of insurance by him and in his favor in the policy mentioned in the certificate An application shall be made to the insurer, i.e. the insurer, within 14 days from the date of transfer, in the form prescribed, for making necessary changes in respect of the facts of the transfer and the necessary changes in respect of transfer of insurance in the insurer’s certificate and insurance policy. Will do