The IRDAI (Insurance Regulatory and Development Authority of India) states that every two-wheeler owner in India needs to buy two-wheeler insurance for their bike. However, many people wonder what happens to the policy when the policyholder passes away.
Just like the vehicle, the bike insurance policy also remains intact after the owner’s demise. In this blog, we discuss the functionality and processes involved in this situation.
Bike Insurance Policy After Policyholder’s Death
The policy does not automatically lapse upon the policyholder’s death. Instead, it must be transferred to a legal heir or nominee, continuing the policy’s coverage and keeping the bike’s protection intact. The bike’s ownership, on the other hand, is automatically transferred to the legal heir succession or nominee.
The policy needs to be transferred so that the ownership details are updated on the insurance policy and to maintain coverage in the event of an accident or damage. If the policy expires, the new owner can renew it and raise claims in case of financial loss due to accidents.
Natural Succession of Two-Wheeler Insurance
● Spouse
If the policyholder has a spouse, this person is deemed the rightful nominee and is the legal heir of the policyholder’s bike and policy. Since they are first in line to inherit both these assets, they can proceed with the transfer process without delay.
When the policyholder buys their two-wheeler insurance online or offline, they have to mention a nominee’s name. The two-wheeler insurance policy transfer will be straightforward if the nominee and the legal heir are the same person. Since most people mention their spouse’s name as a nominee, the process is more seamless.
● Child
For the child to be the natural successor, the policyholder should be the sole parent. There are multiple cases where the policyholder has multiple children. In such cases, there is due process to determine the rightful heir.
However, most policyholders will mention the name of the adult child at the time of policy purchase. When the child’s name is mentioned as the nominee at the time of purchasing the bike insurance policy, the process becomes more straightforward. This is because the nominee and the natural successor are the same person.
Involvement of Entities in the Bike Insurance Policy Transfer Process
● Regional Transport Office
Before the two-wheeler insurance policy is transferred, the nominee has to contact the RTO. When you buy the bike and the policy, the RTO is informed. With the change in ownership of the bike and the bike insurance policy, the RTO needs to be informed about the same.
You may also need to submit two duly filled forms, form no. 29 and 30. These forms are required to complete the transfer of ownership of the bike.
● Insurance Company
Family members or nominees must contact the insurance company and inform them about the unfortunate incident of the policyholder’s death. With the provided information, the insurance company can make necessary changes and issue the required documents.
Make sure to buy your bike insurance from a reliable insurance company, like TATA AIG, for a seamless experience.
● Nominee/Legal Heir
When buying two-wheeler insurance online, if the policyholder mentions a nominee’s name, the insurance company can proceed with the transfer process immediately. While purchasing, if the policyholder has not nominated the successor, the insurance company will proceed with the transfer process in the name of the legal heir.
Documents Required to Complete the Bike Insurance Policy Transfer
To transfer the bike insurance policy, you need to collect several documents as a nominee or legal heir. Ensure that the documents are well-stored and that you know where they are.
- Two-wheeler insurance papers and documents
- Vehicle registration certificate
- Pollution Under Control certificate
- Two-wheeler’s chassis number imprint
- No Objection Certificate if there is an active loan on the bike
- Two-wheeler sales certificate
- Two-wheeler details
- Form 29 and 30
- Death certificate of the policyholder
- Succession certificate
- Legal heir’s identity proof (government ID)
- Legal heir’s address proof (government ID)
- Application of ownership transfer
Summing it Up
When a bike insurance policyholder dies, the policy doesn’t cease to exist, nor does it lapse. It is transferred and enables continuous coverage. As we observed before, the bike insurance is transferred to the nominee or the natural successor.
Thanks to this bike insurance policy transfer provision, the bike is protected even after the policyholder’s demise. However, it is important to ensure that the procedure begins as soon as possible.