Car Insurance After Owner's Death: What Happens?

When a car owner passes away, the vehicle ownership and the insurance policy must be formally transferred to a nominee or legal heir. The coverage does not lapse immediately. It remains valid for a grace period of 3 months from the date of the policyholder's death or until the policy expires, whichever occurs first.Read more

What Happens to the Car Insurance Policy After the Death of the Policyholder?

When a person dies, all their assets, including their car, are transferred to his or her legal heir. Here are some important points in this context:

• Policy Validity: Car insurance can only be transferred if the policy is valid. In case the policy was already expired at the time of the policyholder's death, the insurer will not transfer it. In such a case, the legal heir will have to buy a new policy.
• Renewal of Expired Insurance: In case the car insurance policy expires after the policyholder's death and the heir has not transferred it, they can either get the same policy renewed in their name or compare other plans.

People Involved in Car Insurance After Policyholder's Death

The following entities are involved during the transfer of the car insurance policy after the policyholder's death:

• Legal Heir/ Nominee The first entity involved is the legal heir/ nominee of the deceased policyholder. If the policyholder had made a nominee while buying car insurance, that nominee will be eligible for the policy transfer after the policyholder's demise. In case no nominee has been specified, the legal heir of the policyholder will be eligible to get the car insurance policy transferred to their name.
• Car Insurance Provider The next entity involved is the car insurance company offering protection to the deceased person's car. The insurer must be informed about the death of the policyholder at the earliest. This will help them to change the policy details and offer a new policy document to the legal heir upon policy transfer.
• Regional Transport Office (RTO) The last entity involved in the car insurance transfer after the owner's death is the Regional Transport Office (RTO). The legal heir must get the Registration Certificate (RC) of the deceased policyholder's car transferred to their name at the RTO where the car has been registered. An NOC (No Objection Certificate) from the bank may also be required if the car was on loan with pending dues.

Read More: Money Saving Advice for All Car Owners

What are the Documents Required to Transfer Car Insurance After the Owner's Death?

The legal heir or the nominee must submit the following documents to the RTO to get the deceased person's car insurance transferred to their name:

• Filled-in RTO Form 30 and Form 31
• Original RC of the car
• Death certificate of the original car owner
• Chassis imprint of the car
• Pollution Under Control (PUC) Certificate
• Details of the car and its sales certificate
• A valid car insurance policy
• No Objection Certificate (NOC) from the bank (in case of an ongoing car loan)
• Identity and address proof of the legal heir
• Proof of relationship between the deceased and the heir
• Succession certificate
• Attested copy of Aadhaar card or PAN Card
• Copy of Marriage Certificate (if the heir is the spouse of the deceased)
• Transfer fee
• Filled in Form 29 and Form 30 (if required)

Car Insurance Transfer in Case of Natural Succession

In case of natural succession, different people can become legal heirs for the car insurance policy transfer based on the relationship to the deceased policyholder. Take a look:

• If the Deceased Policyholder has a Spouse: In case the deceased policyholder has a spouse, he/she will become the legal heir for transferring car insurance policy as per natural succession. Most people specify the name of their spouse as the nominee in the car insurance policy. The policy transfer process is easier if the legal heir and the nominee are the same. All car insurance companies in India provide the nominee details to the legal heir of the deceased policyholder when enquired.
• If the Deceased Policyholder was a Single Parent: In case the deceased policyholder was a single parent, the child becomes the legal heir for transferring car insurance as per natural succession. If there is more than one child, the heir is determined by the will or other processes. Moreover, if one of the children is specified as a nominee, he or she is also eligible for car insurance transfer.

Read More: Secrets That Your Motor Insurance Provider Won't Tell You

Things to Remember While Transferring Car Insurance After Policyholder's Death

There are a few things that should be kept in mind while transferring the car insurance policy to the legal heir's name after the death of the policyholder. Take a look:

• Make sure to determine the legal heir of the policyholder without any conflict
• Contact the RTO where the deceased person's car has been registered as soon as possible
• Remember to contact the motor insurance company for a policy transfer as soon as possible
• Keep all the required documents handy
• Take the help of a lawyer if required
• Don't drive the car if the policy has expired
• In case you are buying a fresh policy or renewing an exiting one, compare car insurance online from multiple insurers and then make the final decision.