I want to sell my car, which was insured only last month. Can I ask the insurance company to refund me the premium amount for the remaining time? Is the policy transferable and can I take the premium amount from the new owner?
Both the options—transfer of insurance policy or asking the insurer to refund the premium—are available
I want to sell my car, which was insured only last month. Can I ask the insurance company to refund me the premium amount for the remaining time? Is the policy transferable and can I take the premium amount from the new owner?
Deepak Rawat, Dehradun
When you sell your vehicle, both the options—transfer of insurance policy to the buyer or asking the insurer to refund the premium—are available. If you transfer the policy to the buyer, you need to write to the insurer and enclose the ownership proof in favour of the buyer, for which insurers charge a nominal fee.
The buyer, however, will not get the benefit of the accumulated no-claim bonus on the subsequent renewal of the policy. You can also ask your insurer to cancel the policy and refund the premium. In that case the insurer will refund the balance premium after charging the premium for the period when the policy was in force. The charge of premium in such cases is on short period scales, which is considerably higher than the pro rata premium.