Advice7 min read5 views
Updated 10 November 2026 · Written by the Wahanaya.lk team
Yes. The seller's policy stays with the seller, not the car, so you need your own insurance from the moment you drive it away, or you have no cover and risk losing any accident claim.
Yes. The moment you hand over the money and take the keys, you are the one legally responsible for the vehicle on the road, and you need your own insurance from that point, not the seller's. As motorguide.lk puts it plainly, "the insurance must be in the name of the current owner of the vehicle... you cannot claim compensation under a policy taken by a previous owner." Even if the seller's sticker or digital card still shows a valid date, it only protects the seller, because the insurable interest sits with whoever currently owns the car.
Practically, this means you should either arrange your own policy before you collect the car, or go straight from the handover to an insurance branch or agent the same day. Driving even a short distance home on the seller's old cover is a common assumption that is simply wrong.
No. The policy belongs to the person named on it, and it does not transfer automatically just because the car changes hands. If the previous owner's policy is still active, it keeps covering them for other vehicles or liabilities, not the car you now own. Some sellers assume their insurer will "sort it out" after the sale, but that only happens if the seller formally cancels or reassigns the policy, and even then, a reassignment still has to be issued in your name before it protects you.
If you want to keep the same insurer for convenience, ask them directly whether they can issue a fresh policy in your name on the existing car, sometimes at a similar premium, rather than assuming the current policy simply carries over.
Two separate risks stack up here. First, driving without at least third-party cover is a punishable offence under the Motor Traffic Act, and officers can ask you to prove cover on the spot. Second, and more costly, if you cause or are involved in an accident while uninsured, you are personally liable for third-party injury and property damage, which can run far higher than any premium you were trying to save.
There is also a registration angle that catches people out. motorguide.lk's guide on the legal status of buying a vehicle warns that "if the vehicle is not registered in his name, the person who bought the vehicle will not be able to get insurance rights if he gets into an accident in the vehicle." In other words, insurance and the CR book transfer are linked. Don't treat them as two separate chores you'll get around to eventually — delaying either one puts your claim rights at risk if something goes wrong in between. Both the seller and the buyer are expected to notify the DMT of the transfer within 14 days of the sale, so aim to get your insurance and your transfer paperwork moving together, not one after the other. For the transfer steps themselves, see our guide on documents needed and check /price-check if you still need to confirm what the car is worth before you commit.
As of November 2026, Sri Lanka has largely moved away from the old paper insurance certificate. General insurers began issuing Digital Motor Insurance Cards from 1 May 2026, reported by the Daily Mirror and NewsNow, so when a traffic officer stops you, you can show the digital card on your phone, a printed copy, or have the officer verify your cover by SMS, call, or USSD code (*1338#) using your vehicle or policy number. Drivers are still legally required to be able to present proof of insurance under the Motor Traffic Act, so don't assume "it's all digital now" means you can skip getting covered — it just changes how you prove it.
If you bought your car before these dates, note that existing paper certificates issued before the rollout remain valid until their original expiry date. But that only matters if the certificate was issued in your name in the first place — a paper certificate in the previous owner's name is still useless to you as the new owner, digital system or not.
Faster than most buyers expect. Bring your NIC, a copy of the CR book, and the vehicle's registration number, and most insurers, whether through a branch, an agent, or an online quote tool, can issue a policy or at least a short-term cover note the same day. A cover note gives you legal, insured cover to drive immediately while the full policy paperwork and any no-claim-bonus checks are finalised, so there is rarely a good reason to drive uninsured even for a day. If you're unsure which insurer or plan to pick, it's worth getting two or three quotes before you commit, since premiums and excess terms vary.
If you're still comparing cars or want to check a fair price before you buy, browse current listings on /vehicles or run a /price-check first. If you're financing the purchase, /leasing has a monthly payment calculator so you know the numbers before you sign. Sellers listing a car can post it on /post-ad, and anyone unsure about a specific insurance or transfer situation can ask in the /forum — and it's always worth a read through our /safety-tips before handing over any money.
Check the chassis and engine numbers stamped on the vehicle against the CR book, confirm the seller matches the registered owner's NIC, and cross-check the registration on DMT eServices before you pay. If anything doesn't match exactly, walk away or verify at an RMV office first.
Wahanaya.lk team7 min read
Enter the car's chassis number, your NIC/passport and mobile number at Sri Lanka Customs' Vehicle Verification Portal (services.customs.gov.lk/vehicles) and you'll get an SMS confirming whether it was legally cleared, locally assembled from imported parts, or fitted with fraudulent number plates.
Wahanaya.lk team6 min read
Absolute owner on a CR book means a finance company or bank still legally owns the vehicle under an unpaid lease or loan. You can buy it, but the financier must give a written release before DMT transfers it to you.
Wahanaya.lk team6 min read
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