Are you planning to buy a car but cannot find a suitable one that fits your budget? A used car may be a better alternative. With public transport becoming increasingly stretched due to poor infrastructure, getting a second hand car has become immensely popular today.
Buying a used/ second hand car gives buyers the pride of owning their own vehicle, with most of the latest features available in top-of-the-line models. If you are looking to sell a used car, one of the most important things to consider, in addition to car servicing and a thorough car wash, is car insurance.
If the prospect insists on a test drive, a fresh coat of car paint may also be in order. In fact, the price your car fetches or commands in the second hand market depends to a great extent on the insurance you carry.
No Claims Bonus (NCB) discount and the terms and conditions of the insurance company deserve attention when the insurance policy is being transferred. If the buyer and the seller do not consider these things when selling or buying a used car, then it might lead to many major problems later.
The buyer also needs to realize that it is crucial to have the insurance policy transferred to his name within 10-14 days of purchasing the car. To transfer the insurance policy, the seller has to inform the insurance company in writing, the seller has to pay a nominal fee for the transfer.
If ownership is not transferred, the buyer will face the risk of claim rejection. As per the directives of the Insurance Regulatory and Development Authority of India (IRDAI), insurance claims will not be settled if the insurance and the registration number of the vehicle don’t have the same name and address.
The seller should claim the NCB (if any) as soon as the policy is transferred to the buyer. No claim bonus ranges from 20% to 50%, which is entirely based upon the available claim free years. NCB should be claimed because it cannot be transferred to the buyer by the seller.