The short answer is yes. You as the seller, need to inform your insurance company regarding the transfer. Thereafter the new owner needs to fill a new proposal form. The insurance provider will charge a nominal fee for the transfer and adjust the no-claim bonus accrued in the current cycle of the policy on a pro-rata basis. Please note that the original policy holder needs to intimate the insurance provider within 14 days from the date of transfer of the vehicle, in case of comprehensive covers, failing which the own damage claims may not be honoured. Please contact your policy issuer for details.