Before you pay for a used car, check its registration number for pending e-challans and get the seller to clear them. Then apply to the insurer to move the policy into your name within 14 days of the transfer, or buy a fresh policy.
Why Pending Challans on a Used Car Matter Before You Pay
Pending challans matter because an e-challan is linked to the car’s registration number, so an unpaid fine stays on the record after the car is sold. Telangana Today reported in October 2026 that this record now surfaces before a sale, in the same way as the rest of a car’s papers.
Until the registration certificate (RC) carries your name, the seller is still the owner on record. Please note that challans, tax dues and accident liability stay with that owner until the transfer is done.
Once the RC is in your name, an old e challan becomes your problem in practice. Mathrubhumi reported that the transport office may flag pending challans and ask for them to be paid before it changes the owner. Offices do not all apply this the same way.
How to Check Pending Challans on a Used Car
Checking pending challans takes a few minutes on the Parivahan eChallan portal of the Ministry of Road Transport and Highways. Ask the seller for the RC, which carries all the numbers you need.
1. Open the portal and choose Check Challan Status.
2. Select the vehicle number option and enter the registration number.
3. Enter the last five digits of the chassis or engine number.
4. Fill in the captcha and the one-time password, then click Get Detail.
Any pending challan appears with the date, the place, the offence and the fine amount. Look up the state traffic police portal too, for the state where the car was mostly driven. Delhi Traffic Police and MahaTraffic in Maharashtra run their own, and Telangana has its own challan system. The Vahan portal shows the RC details, including any loan still recorded against the car.
What to Ask the Seller About Pending Challans
The seller should pay every pending challan online before you make the final payment. Settle these three points with the seller:
– The payment receipt for each challan, or a screenshot of the portal showing nothing due
– Time to look at the portal again a few days later, as Mathrubhumi notes that processing can take a few working days
– A cut in the price equal to the fines, if the seller will not pay them, written into the sale agreement
Payment and clearance are two different steps. Wait until the portal shows each challan as cleared before you sign the forms.
How the 14-Day Insurance Transfer Rule Works
The 14-day insurance transfer rule comes from Section 157 of the Motor Vehicles Act, 1988. The policy is treated as moved to the buyer from the date of transfer. The buyer must then apply to the insurer within fourteen days to have it put in their name.
You can also skip the transfer and buy car insurance online in your own name, if the old policy is near its end or third-party only. Note its end date first, so third-party cover has no gap. Some reports quote a 30-day window, but the text of Section 157 says fourteen days. Apply early, with copies of Forms 29 and 30 if the new RC has not arrived yet.
The deemed transfer covers the third-party part of the policy, which pays for injury or damage you cause to someone else. Own-damage cover, which pays for your own car, needs an endorsement (a written change added to the policy) from the insurer. Without it, an own-damage claim may be rejected.
What Happens to the No Claim Bonus After a Used Car Sale
The no claim bonus after a used car sale stays with the seller, because it belongs to the policyholder and not to the car. The NCB (no-claim bonus, a discount for not claiming) applies only to the own-damage premium and rises from 20% after one claim-free year to 50% after five.
The seller can ask the insurer for an NCB retention certificate and use it on their next car. The Times of India notes that the insurer may then work out the premium again without the bonus, and you pay the difference. If you sold a car of your own and hold an NCB certificate, the insurer may apply it to the policy on this car, as per its rules. Ask for the revised premium in writing before you agree to the transfer.
Papers for the RC Transfer and the Insurance Transfer
The papers for the RC transfer and the insurance transfer overlap, so collect them in one go on the day you pay. Forms 29 and 30 are the core of the RC transfer. The seller signs Form 29, the notice of sale, and you file Form 30, the application for transfer.
| Document | RC Transfer at the RTO | Insurance Transfer |
|---|---|---|
| Forms 29 and 30 | Needed | Forms 29 and 30 or the RTO receipt |
| Original RC | Needed | RC copy or proof that the transfer has started |
| Existing insurance policy | Needed | Needed |
| Valid PUC certificate | Often asked for | Often asked for |
| ID and address proof | Needed | Needed |
| Sale agreement | Keep a copy | Often asked for |
There could be more papers that some RTOs ask for. These include a PAN card or Form 60, a pencil print of the chassis number, a date of birth proof and a photograph. The insurer may also ask to inspect the car, more so after the 14 days have passed.
Deadlines and Fees for the RC Transfer
The deadlines and fees for the RC transfer depend on where the car is registered. You have 14 days from the sale for a car from the same state, and 45 days for one from another state. A car from another state also needs a no objection certificate from its original RTO.
The central fee for a private car is Rs 300, which is half the registration fee under Rule 81 of the Central Motor Vehicles Rules. Note that a late fee of Rs 500 a month for cars that miss the deadline.
You can apply on the Vahan portal. Enter the registration number and choose Basic Services. Confirm with the last five digits of the chassis number and the OTP (one-time password), then pick Transfer of Ownership.
The printed RC can take weeks to arrive. On Team-BHP, one member bought a car on 29 June and saw the new RC on DigiLocker only on 4 August. The insurer accepted copies of Forms 29 and 30 in the meantime.
Loan and FASTag Checks Before the Final Payment
Loan and FASTag checks come last, just before the final payment. If the car was bought on a loan, the seller and the bank must file Form 35, which removes the loan entry from the RC. The bank also gives a no objection certificate.
The seller should also clear any unpaid National Highway tolls and close or delink the FASTag on the car. A FASTag left in the old owner’s name keeps charging that person’s account. Hold back the final amount until three things are in hand: a portal page showing no pending challans, signed Forms 29 and 30, and the insurer’s reply on the transfer.
Frequently Asked Questions
Can I drive a used car on the old owner’s policy?
A used car can be driven on the old owner’s policy only for a short time. Section 157 moves the third-party cover to you from the date of transfer, but you must apply to the insurer within 14 days to put it in your name.
What is the fine for driving without valid insurance?
Driving without valid insurance carries a fine of Rs 2,000 for a first offence and Rs 4,000 for a repeat offence under the Motor Vehicles Act. The fine applies to used cars the same way as new ones.
What happens if I miss the 14-day insurance deadline?
A missed 14-day deadline can leave an own-damage claim open to rejection. An accident victim can still claim, but the insurer may try to recover what it pays from you, so apply as soon as you can.
Can I buy a new policy instead of transferring the old one?
A new policy in your own name is allowed instead of a transfer. Compare the premium, the IDV (the maximum your insurer will pay if the car is stolen or written off) and the cover before you choose.
Who pays a challan issued before I bought the car?
A challan issued before you bought the car was raised against the owner at that time. Once the RC is in your name, an unpaid one can still hold up your paperwork, so settle it with the seller before the sale.
Key Takeaways
– Look up the registration number on the Parivahan eChallan portal and the state portal. Pending fines stay linked to the car after it is sold.
– Get pending challans cleared before the final payment. Wait until the portal shows them as cleared, not just paid.
– Apply to the insurer within 14 days of the transfer. Section 157 moves third-party cover to you, but own-damage cover needs an endorsement.
– The seller keeps the no claim bonus. The insurer may work out the premium again, so ask for the revised amount in writing.
