While a pre-owned bike can be an excellent choice for many, it is important to properly transfer ownership of the bike from the old owner to the new buyer. Keep reading to know more.
India has a significant market for pre-owned two-wheelers. People can prefer pre-owned bikes for various reasons, like chances of owning a high-end bike at a significantly low cost, acquiring riding experience, etc.
But if you’re thinking of purchasing a pre-owned bike, then you should do so with a proper ownership transfer of the bike. It can save you from many potential hassles in the future.
Why Is Ownership Transfer Important for a Bike?
The ownership of a pre-owned bike should always be transferred from the old owner to the new owner for the following reasons.
The seller will remain the owner of the bike until the ownership is officially transferred to the new owner. Consequently, all the liabilities of the bike will lie with the original owner. Additionally, if the bike is used for any illegal means, then the original owner might be held accountable by the law even if the person sold the bike long ago without transferring the ownership.
As per The Motor Vehicles Act 1988, it is mandatory for every vehicle to have at least Third-Party vehicle insurance before it can ply on Indian roads. Therefore, third-party bike insurance is a must, even if it is a second-hand bike.
But a second-hand bike buyer will not be able to purchase or renew the bike insurance policy if the bike’s ownership is not transferred to the new buyer. Once the ownership is transferred, the new buyer can easily renew the existing two-wheeler insurance or buy a new one.
The new owner can buy comprehensive bike insurance that provides both third-party and own-damage insurance coverage.
Transfer the No Claim Bonus Benefit
For the owners of the old bike, ownership transfer of the bike properly allows them to transfer the NCB accumulated so far. This NCB can be used when purchasing a new bike to reduce the insurance cost of the new vehicle.
Documents Required For Ownership Transfer
A bike registration certificate, commonly known as Bike RC, is a vital document to prove vehicle ownership. Hence, transferring the Bike RC from the seller to the new buyer is compulsory. Once the seller transfers the Bike RC to the new owner’s name, the bike officially belongs to the present owner.
It is mandatory for every bike to have a Pollution Under Control (PUC) certificate. Therefore, ensure that the pre-owned bike you’re about to buy has a valid PUC certificate.
Bike Insurance Certificate
Ensure that the seller transfers the existing bike insurance policy to your name to complete the ownership transfer. You should also inform the bike insurance provider about the ownership transfer with the proper documents.
The ownership transfer process involves the submission of some additional documents mentioned below.
- Form 29 -the notice of ownership transfer to the RTO (Regional Transport Office)
- No Objection Certificate (NOC) from the seller
- Road tax payment receipts
- Tax clearance certificate
Unlike in older days, the ownership transfer of a bike is not a lengthy process anymore. Besides, you would like to ride your pre-owned bike without any legal or insurance concerns. Therefore, it is always wise to complete the ownership transfer process when buying/selling the bike.