Seamless Car Insurance Transfers: Avoiding Common Pitfalls

Zurich Kotak General Insurance emphasizes the importance of transferring car insurance policies during vehicle ownership changes. Many owners mistakenly focus only on RTO ownership transfers, neglecting the insurance update, which is crucial to prevent claim rejections and legal issues. The process requires coordination between buyers, sellers, and detailed documentation submission within specified timelines.

Zurich Kotak General Insurance, a prominent player in the insurance field, highlights a frequently overlooked issue during car ownership changes: the transfer of insurance policies. While many focus on completing the vehicle ownership transfer through the Regional Transport Office (RTO), the crucial step of updating the insurance policy to reflect the new owner's details often gets neglected. This oversight can lead to claim rejections, legal complications, or financial liabilities, as a car insurance policy does not automatically follow the car to a new owner.

As outlined by Section 157 of the Motor Vehicles Act, both seller and buyer must ensure the car insurance transfer occurs within 14 days of purchase to maintain coverage and legal compliance. Zurich Kotak General Insurance provides a detailed guide for this transition, starting with vehicle ownership transfer at the RTO, notification to the insurer, documentation submission, potential vehicle inspection, fee payment, and eventual policy endorsement under the new owner's details.

To facilitate smooth transfers, Zurich Kotak General Insurance emphasizes digital processing, automated policy issuance, and dedicated assistance. By focusing on these processes, the company ensures minimal disruption for policyholders. The joint venture between Zurich Insurance Group and Kotak Mahindra Bank, rebranded as Zurich Kotak General Insurance Company (India) Limited in August 2024, continues to grow rapidly in India's non-life insurance sector.

(With inputs from agencies.)