Policyholder Dies

What Happens to Two-wheeler Insurance When the Policyholder Dies

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Driving with insurance is mandatory in India. Bike owners have various options to choose from while buying bike insurance. They can buy third-party insurance, comprehensive bike insurance, or own-damage insurance. Insurance mainly acts as financial aid if there is an unfortunate accident or if the vehicle gets stolen. Now, one may wonder what will happen to the bike insurance policy if the policyholder dies. Read further to understand what happens in such an unfortunate instance.

What Happens When the Policyholder Dies?

In case of the policyholder’s death, the ownership of the policy and the vehicle is transferred to the nominee or the legal heir. In the natural succession for a two-wheeler insurance transfer, either the spouse or the child of the deceased may be the successors. In most cases the spouse will be the natural successor but, if the policyholder is a single parent, after their demise, their child will become the legal heir. The transfer process is a lot easier if the nominee is mentioned in the policy

Entities Involved in The Transfer of Two-Wheeler Insurance After the Death of the Policyholder

Generally, a two-wheeler insurance contract involves only two parties, the insurance company and the policyholder. However, in the case of the death of the policyholder, there are other parties that will be involved in the transfer of the insurance policy. The following are the list of entities involved in the transfer of bike insurance:

Insurance Company

Firstly, the insurance company must be informed about the death of the policyholder. This is primarily to make the transfer process easier, modify the details, information and issue a new policy document to the legal heir or nominee

Nominee/Legal Heir

While buying an insurance policy, the policyholder will be asked to select a nominee and once the nominee is opted, the policy will be transferred smoothly to the nominee. On the other hand, if the policyholder has not chosen a nominee, the legal heir of the policyholder can carry forward the necessary paperwork required for the transfer

Regional Transport Office (RTO)

Before the transfer process is initiated, the nominee or the legal heir will have to approach the RTO for the transfer of the Registration Certificate to their name. If the two-wheeler has an active loan, one will have to submit a No Objection Certificate (NOC) from the bank or financial institution to the registering authorities

Documents Required to Transfer Two-Wheeler Insurance After Policyholder’s Death

  • Registration Certificate
  • Death Certificate of the policyholder
  • A two-Wheeler insurance policy document
  • Forms from the RTO for policy transfer
  • Pollution Under Control (PUC) Certificate
  • No Objection Certificate (NOC) if the two-wheeler has an active loan
  • Succession Certificate
  • Marriage Certificate if the spouse is the legal heir/nominee
  • An affidavit attested by the Notary stating the bike insurance can be transferred
  • Self-attested Aadhaar or PAN Card copy

The transfer of bike insurance is very simple if the policyholder chooses the nominee while buying the insurance policy. The nominee or the legal heir must make sure they have all the required documents and complete the necessary formalities for the transfer. To know more about bike insurance policies, click here!

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