What Happens To Car Insurance When The Policyholder Passes Away

What Happens To Car Insurance When The Policyholder Passes Away?

The passing away of the policyholder is a tragic occurrence. In such circumstances, the policyholder’s family needs time to grieve and mourn the loss. But there comes a time when vital paperwork must also be completed. One such piece of paperwork is car insurance.

How Does Car Insurance Operate After A Policyholder’s Passing Away?

When a policyholder passes away, the legal heir will become the vehicle’s new owner. Similarly, if the car insurance policy is still in effect after the car’s owner passes away, it will also be transferred to that person’s (the legal heir’s) name.

Entities Involved In Car Insurance Transfer After Policyholder Passing Away:

If purchased directly, the insurance company and the policyholder are parties to the car insurance contract. The car dealer or an agent will serve as a facilitator in the event of an offline purchase. 

  • An Insurance Provider

The insurance provider must be notified of the policyholder’s passing immediately. Due to the passing away, they will need to change policy information and other pertinent data on their end.

  • Legal Heir

The car insurance policy will be smoothly transferred to the nominee if the policyholder named one when purchasing the car insurance cover. The car insurance policy will be transferred to the deceased policyholder’s legal heir following the completion of the appropriate procedures in the absence of nominee information. You can always utilise a car insurance calculator to understand the appropriate level of coverage for your needs.

  • Office Of Regional Transportation

The legal heir must change the vehicle’s registration certificate from the policyholder’s name to theirs. The individual must go to the Regional Transport Office (RTO), where the car was registered for that. The authorities may require a No Objection Certificate from the bank for the car insurance transfer if purchased with a loan and the outstanding instalments.

Some of the paperwork required for a successful RC transfer is listed below: 

  • Certificate of Registration (Original Version)
  • Certificate of Pollution Under Control (PUC)
  • Imprint of the four-wheeler’s chassis
  • Details and sales certificate for four wheels
  • Adequate four-wheeler insurance
  • Certificate of Death for the Deceased Policyholder
  • Proof of the legal heir’s address and identification
  • (Attested) copy of an Aadhaar
  • Succession Certificate
  • Relevant RTO forms

After the demise  of the car owner, there is a natural succession for car insurance transfers. In the event of the policyholder’s passing, there are typically two situations where natural succession occurs:

  • The Passing Of A Spouse

When a spouse passes away, the partner may inherit property legally. If the spouse is listed as the nominee, the process is more straightforward if something goes wrong. You can find out by getting in touch with the insurance provider. They will either confirm or deny the existence of the nominee’s details.

  • Single Parent Passing Away

The policyholder’s children would come first naturally if the policyholder were a single parent. If there are multiple children, the sibling designated as the legal heir through the proper channels should contact the insurance provider and request the changes.

Standard T&C apply. 

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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