Page 62 - Motor Insurance Ebook IC 72

The Insurance Times

The transferee should apply within 14 days from the
date of transfer on the prescribed form to the insurer
for making the necessary changes in the Certificate of
Insurance and in the Policy, and the insurer is obliged to
make such changes in the said documents to give effect
to the transfer of insurance.

However, in case the transferee, did not apply for the
transfer of the policy within the stipulated period, as
motioned above, the same will not affect the right of
third party, Therefore, even in the case of non-transfer
of the policy by the transferee, insurer held liable to
third party. However, such deemed transfer is applicable
only for third party liability, but not for the own damage
segment, in case the vehicle was covered by a package
policy.

For example, in case the purchaser failed to make an
application within the stipulated period of 14 days for
the transfer of the policy from the date of purchase of
the vehicle, the insurer will be liable towards third party,
but will not be liable for damage to the vehicle in case
the vehicle was insured by a package policy. Therefore,
on sale of vehicle certificate of insurance gets transferred
to the new owner automatically, however such transfer
of insurance is only for Third Party insurance and not
for Motor OD insurance

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