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On sale and transfer of a vehicle, what happens to the Bonus/Malus?

Bonus or Malus is transferred to the new owner and the old owner can avail of it for his/her new vehicle. On policy renewal, both new and old owners will have their Bonus/Malus starting from nil.

Apnainsurance.com Research Bureau

29 Nov 2007

Any Bonus/Malus on a vehicle is transferred to the next owner. While the owner who has just sold the vehicle can claim bonus on the next vehicle purchased, the new owner of the vehicle also will enjoy the bonus until the date of renewal of the car insurance policy. On the date of renewal, the Bonus/Malus for both previous owner and new owner will not apply and start from nil.

For example, if Mr. X sells his car to Mr. Y, the bonus accrued by Mr. X on the vehicle is transferred to Mr. Y up to policy renewal. At the same time, Mr. X is also allowed to carry forward the insurance bonus accrued, to his next vehicle purchased.

See also:

What is Malus?

What is No Claim Bonus?

What if I have sold my vehicle and the insurance policy will still take a few months to expire. Can I transfer my insurance policy?

In case my vehicle is sold and an accident occurs while the policy is in the process of being transferred, would the new owner be eligible to file a claim?

Motor Insurance FAQs on Claims

Motor Insurance FAQs on Coverage

Motor Insurance FAQs on Cost, Premiums, Bonus, Discounts, Renewals