RTO & Ownership Transfer

How to Transfer Car Insurance to the New Owner in India

By Bill My Car · Updated 25 June 2026 · 1 min read

When you sell a used car, transferring the insurance to the new owner is just as important as the RC transfer. Skip it and a future claim can be rejected, with liability landing on the wrong person. Here is how to do it right.

Why it matters

• Continuous, valid cover for the new owner.
• The right person is liable after the sale, not the previous owner.
• Claims are honoured, because the policyholder matches the RC.

The 14-day rule

Under Section 157 of the Motor Vehicles Act, the buyer must apply to transfer the insurance within 14 days of the ownership change. During those 14 days, only the third-party portion of the policy automatically extends to the new owner. The own-damage cover needs the formal transfer to apply.

Documents needed

• Updated RC (or proof that RC transfer is in progress)
• Form 29 and Form 30
• Seller's NOC where applicable (Form 28)
• Buyer's KYC (Aadhaar, PAN)
• Sale proof: the car invoice or sale letter
• Buyer's PUC certificate
• The existing policy document

How to transfer car insurance

1. Inform the insurer of the sale.
2. Submit the documents above to the insurer.
3. Pay the small transfer fee if charged.
4. The insurer endorses the policy in the buyer's name.
5. Keep the endorsed policy with the rest of the sale papers.

Where it fits in the sale

Insurance transfer is one step in the full handover, alongside the invoice, sale letter and RTO forms. See the complete flow in how to transfer car ownership and the documents checklist.

Make the paperwork painless

The sale proof, Form 29 and Form 30 that the insurer asks for all use the same details. Capture the deal once in Bill My Car and produce them together, so the insurance transfer is just a matter of handing over clean documents.