What Happens to Two-Wheeler Insurance When the Bike Owner Passes Away?

When you own any two-wheeler in India, like scooters, motorcycles, etc.,  you will need a scooter insurance plan to meet the legal requirements of owning it. You get the flexibility to purchase a third-party plan, own damage insurance or a comprehensive bike insurance plan for decent coverage.

Insurers like Tata AIG allow customers to buy bike insurance online. With online two-wheeler policies, you get to compare different plans and use helpful tools like insurance premium calculators. Purchasing the policy will protect the vehicle.

However, different instances can lead to the unfortunate demise of the policyholder. While dealing with the loss of an individual can be a bit difficult emotionally, it is important to learn about the impact on the bike insurance plan.

Impact on Bike Insurance Plan After Policyholder’s Death

If a policyholder has passed away, the ownership of their bike is transferred to the legal heir. Along with this, the bike insurance plan will also have to be transferred to the new owner of the vehicle. However, the policy must be active before it is passed onto them.

If the policy has expired, the vehicle’s new owner can renew the policy under their name or purchase a completely new policy altogether. This way, the vehicle’s new owner can get the flexibility to choose from a wide range of comprehensive bike insurance plans for their vehicle as per their requirements.

To transfer the two-wheeler insurance plan, individuals must follow simple procedures and prepare certain documents. Along with this, the new owner must contact the insurer as soon as possible about the two-wheeler insurance plan’s transfer once the policyholder has passed away. Apart from this, the appropriate parties must also be informed for a smooth transfer.

Parties Needed for Transfer of Bike Insurance After Policyholder’s Death

A two-wheeler insurance plan is an insurance contract between the insurance company and the policyholder. However, once the policyholder passes away, other parties must transfer the policy to the new owner. Given below are parties involved in bike insurance transfer:

1. Legal heir/nominee: If the policyholder has listed a nominee during the policy purchase, the insurer can directly transfer the insurance plan to their name. If no nominee is listed in the policy document, the policyholder’s legal heir can initiate the procedure for transferring the bike insurance plan.
2. Insurance company: The insurer through which the bike is insured should be informed about the policyholder’s death as soon as possible. It will help the insurer adjust the insurance details, other information and offer a new insurance plan document to the heir once the policy has been transferred.
3. RTO: Before the transfer, the nominee must contact the RTO for the Registration Certificate (RC) transfer. Along with this, the RTO may also require a NOC (No Objection Certificate) from a financial institution if the bike holds an active loan. Here are some documents needed for an RC transfer:

• Registration Certificate
• Pollution Under Control Certificate (PUC)
• Chassis imprint of the bike
• NOC from the bank (if needed)
• Death certificate
• Succession certificate
• Details of the bike with the purchase certificate
• Legal heir’s identity and address proof (Voter ID, Passport, Aadhaar card, etc.)
• Form 30 and 29 (if needed)
• Application for transfer of ownership (form 31)

What is the Natural Succession for Bike Insurance Transfer After Policyholder’s Death?

There are two common scenarios of the natural succession in the event of a policyholder’s death:

1. Deceased policyholder’s child: The two-wheeler insurance can be transferred to a child if a single parent is a policyholder who passed away. If the policyholder has more than one child, they can select the legal heir through due process. But, if the child’s name is listed as the nominee in the insurance plan document, the transfer process becomes smooth.
2. Deceased policyholder’s spouse: The spouse can become the legal heir in the event of the policyholder’s death. With natural succession, the insurance plan can be transferred to their name. For most cases, the policyholder generally mentions their spouse as the nominee in the insurance policy document. Transferring the insurance for your bike is easy if the nominee and the legal heir are the same.

You can check the nominee for the policy by contacting the insurer and asking them. If the policyholder is single, the insurance policy is transferred to the specified nominee or the legal heir.

If you were listed as the legal heir in the policy document, you must provide the necessary documents as a part of the policy transfer method.

Document Needed for Bike Insurance Transfer After Policyholder’s Demise

Given below are some documents that you will need to submit for transferring the two-wheeler insurance plan to your name smoothly:

• Registration Certificate
• Previous policyholder’s death certificate
• Policy document
• RTO forms needed for transfer
• PUC certificate
• NOC from the bank
• Succession Certificate
• Marriage Certificate
• Attested affidavit stating the bike insurance can be moved to the legal heir’s name
• Aadhaar card or PAN card copy

Things to Remember While You Transfer Two-Wheeler Insurance

• Contact the insurance company for changing the name
• Contact the RTO for transferring the RC quickly
• Gather all necessary documents
• Take help from a lawyer(if needed)

Conclusion

Bike insurance transfer is a simple process. First, however, you must provide all the necessary documents. Then, the heir or the nominee of the deceased policyholder must complete all the important formalities for transferring the policy quickly. In addition, you must avoid riding the bike until the bike insurance plan is transferred to your name to avoid any penalties.