What happens if the vehicle is sold, but Insurance Policy is not transferred in the name of new buyer?
Ans.The Motor Insurance Tariff provides transfer of insurance policy unless substituted for a new vehicle. That is why the insurer of the vehicle does not cancel the Insurance Policy until the seller provides the proof for purchase of a new policy (At least Act Policy). Even substitution is not permitted unless the seller produces the proof of Insurance of sold vehicle obtained by the buyer of the vehicle.
