▶️ Watch on YouTube: https://youtube.com/shorts/k3ter5dlrDQ?feature=share Nitesh bought a used Hyundai i20 from a private seller in Bangalore. He followed the proper procedure at the RTO for transferring the Registration Certificate (RC) to his name and for updating the CNG Endorsement on his RC Smart Card after having a CNG kit installed in his car. Six months later, his car suffers major damage after an accident, while he escapes unharmed. The boot is crushed, rear axles are bent, and the tail-lamp assemblies are smashed, and the repairs from an authorized dealership are costing a total of ₹1.5 lakh. He files an insurance claim, but it gets rejected, citing “Non-Transfer of the Insurance Policy” and “Non-Disclosure of Material Modification”. He is stumped and wondering where he made the mistake. Ultimately, he had to pay for the repairs out of pocket. Understanding the small details in motor insurance policies can save vehicle owners money from avoidable claim rejections. The reasons for rejection can largely be grouped into documentation mistakes, vehicle modification or usage violations, and procedural mistakes post-accident. Reason 1: Name Mismatch on Used Cars Many second-hand vehicle owners wrongly believe that transferring the vehicle ownership through the RTO automatically transfers the ownership of the attached insurance plan along with it. It may not. It depends on the component in question within a comprehensive motor insurance policy: the Third-party Protection or the Own Damage (OD) Cover. The third-party protection is automatically transferred to the new vehicle owner without needing a visit to the insurer, according to Section 157 of the Motor Vehicles Act, 1988. This provision is legally called a “deemed transfer”. It is designed to cover and protect third-party victims of an accident that may have occurred even before the transfer of the insurance policy.