When you buy a new vehicle, insurance is mandatory. However, many people skip reading the terms and conditions carefully. This can lead to unexpected troubles later. A recent incident from Haryana highlights this issue. A person decided to sell their car and obtained a No Objection Certificate (NOC) for the transfer. However, the buyer backed out at the last moment and refused to take the car. Unfortunately, the seller’s car met with an accident during this period. This sparked a major dispute between the seller, the insurance company, and the buyer.

After the accident, the car owner informed the insurance company and parked the vehicle at their service centre for a month. Despite valid insurance, the company denied the claim, citing an NOC issued for selling the car. The owner, who spent ₹1.89 lakh on repairs, approached the Consumer Commission. The Commission said that an NOC alone does not transfer ownership and directed the company to pay back ₹1.89 lakh, pay a ₹25,000 fine, and cover ₹10,000 in litigation costs.

Here are some important tips to remember when purchasing vehicle insurance:

1. Read all documents carefully before signing.
2. Transfer NOC to the buyer’s name after buying or selling a second-hand car.
3. Contact the insurance agent for all details when selling a used vehicle.

These steps can save you from unnecessary problems in the future.