Car Insurance After The Policyholder Dies

What Happens to Car Insurance After The Policyholder Dies

As we all know, car insurance is a mandatory document to drive a vehicle on India roads. People can either choose to buy third-party car insurance or comprehensive car insurance plans, depending on their affordability and necessity.

Apart from the fact that an insurance plan is mandatory, it is imperative to understand that the policy is meant to protect your asset. In case an unfortunate event, the damage repair expenses will be taken care of by the insurer.

However, what do you think happens to the car insurance policy when the policyholder dies? In this section, we will be discussing the same in elaborate details.

What happens to the car insurance plan after the policyholder dies?

In case the policyholder dies, the ownership of the vehicle is transferred to the legal heir. Likewise, the car insurance pan (upon the death of the primary policyholder) will be transferred to the said individual’s name if the policy is still active.

However, if there is a delay in this transfer and it is way past the policy expiration date, then the legal heir can renew the policy under their name. However, this process will require all the necessary documents at each stage of policy renewal. The legal heir is liable to inform the insurer about the death of the policyholder and the transfer process of the car insurance plan.

Who is involved in the car insurance transfer process?

Ideally, the basic purchase of the car insurance plan involves the insurer and the policyholder. In the event of the policyholder’s death, the car insurance transfer process involves the following people.

  1. Insurer

At first, the insurer has to be informed regarding the death of the policyholder as soon as possible. After this, they will modify the car insurance policy details and other related information from their end.

  1. Legal heir

In case the policyholder has enlisted a nominee when buying the car insurance plan, the policy will be transferred to the said individual immediately. However, in the absence of the nominee details, the car insurance plan will be passed on to the legal heir.

  1. Regional Transport Office (RTO)

The legal heir also needs to get the registration certificate of the vehicle transferred from the previous owner’s name to their name. For this purpose, they need to visit the RTO at which the car was registered. To transfer the RC, the authorities at the RTO may need a No Objection Certificate from the bank in case there is an outstanding loan on the asset. The documents that may come in handy for a successful RC transfer are as follows –

  • The original registration certificate of the vehicle
  • Pollution Under Control (PUC) certificate
  • Chassis imprint of the vehicle
  • Vehicle details and sales certificate
  • Valid car insurance plan
  • Death certificate of the previous policyholder
  • Address and ID proof of the legal heir
  • Aadhaar copy
  • Succession certificate
  • RTO forms

To Conclude

In case the legal heir has difficulty in understanding the car insurance charges, they can use the car insurance premium calculator. The tool allows people to understand the premium amount they have to pay for the chosen coverage and add-on benefits on their car insurance plan.

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