Car Ownership Transfer in Ajman - Know the step-by-step process of Car and Vehicle ownership in Ajman. Our Complete guide covers the requirements and procedures for a smooth Ajman vehicle ownership transfer.
You must have made a sound decision if you are planning to sell your car to a new owner or you are thinking about buying a second-hand one for yourself. Although buying or selling your car will come with a bunch of different sets of important paperwork in order to change the ownership of the vehicle. One of these sets is to transfer car insurance from one person to another.
It is rather easy to transfer car insurance from one person to another in event of a sale. All you need is a set of documents that are required for a smooth transfer process. As soon as you have gathered all the required documents, initiate the car insurance transfer process while keeping the new owner of the car in the loop. Note that there is a deadline on the transfer of insurance after the process of ownership transfer has been initiate so make sure that you are prompt when it comes to transfer of car insurance from one person to another. If the insurance of the car in concern has not been transferred in the name of the new owner in the due time, it will be considered null and void. Moreover, if the new owner happens to file a claim against the insurance while it is still in the name of the previous owner, the insurance company will deny covering for it.
Following is the list of required documents to complete the transfer of car insurance from one person to another:
As soon as you have submitted all these documents, proceed to submit the transfer fee for car insurance and settle any pending premiums for the due time of your ownership. If you have any No Claim Bonus accumulated on your current policy, go ahead and make preparations to settle it as well.
Car insurance is related to the car and not the owner which is why it can be transferred in the name of the new owner as and when the vehicle is sold. However, a No Claim Bonus is a reward that the car owner has earned for not filing any claims for the time they held the policy under their name. This is why No Claim Bonus is not transferrable when you transfer car insurance from one person to another.
But that does not mean that all your diligent driving and claim-free years have to go to waste. If you have already bought or planned to buy a new vehicle in your name, you can easily transfer the no-claim bonus to your new car insurance policy, even when you are changing the policy providers. You will need a no-claim bonus retention form and a no-claim bonus certificate from your insurance provider to ideally get your bonus transferred to a new policy.
The amount of no claim bonus is generally decided in terms of percentage and depends upon the driving of the owner and the number of years the vehicle has gone without a claim. For example, a policy with no claim for 3 years can gain a no claim bonus of up to 20%. The maximum no-claim bonus car insurance can get you is 50%. This bonus is offered as a discount on the premium for your policy which means that in a case where your premium is AED 10,000 and NCB is 30%, you will only have to pay AED 7,000 as premium.
To Steer Clear of Fines and Legal Actions: Not transferring the car insurance to the new owner can lead to several legal disadvantages. The biggest one is that it is illegal to drive a vehicle without valid insurance. When we say valid, we mean that both the registration of the vehicle and the car insurance have to bear the same name. In case of discrepancy, the insurance will be considered null and hence will lead to hefty traffic rules violation fines.
To Retain No Claim Bonus: It is only after you have transferred the car insurance successfully to the new owner in time that you can retain your no claim bonus. You will be required to inform the insurance company and get the no claim bonus retention certificate at the time of transfer so that you do not lose your hard-earned benefits.
A lot of troubles can come your way if you fail to transfer car insurance from one person to another aka from first to the second owner. From the buyer’s point of view, the absence of valid insurance for the car you are driving which is registered under your name will lead to legal actions. It is illegal to drive a vehicle without at least proper third-party insurance. Second, if you happen to meet an accident and file a claim without the transfer, the insurance company will not be liable to pay for your or the third-party damage (if you are at fault).
From the point of view of a seller, you will lose your no claim bonus as it can only be redeemed during the renewal of the policy or while buying a new one. You will have to transfer the car insurance to obtain the NCB retention certificate from the insurance company so that you can apply it while buying your next car insurance. Second, you may be liable to face a hefty fine since it is your responsibility as the seller to transfer all necessary ownership documents to the new owner. If the second owner happens to file a claim for damages from an accident that is not paid for by the insurance company, the court may declare you liable to pay for them.
Since car insurance is mandated by law in the UAE, it is important to make sure that the transfer of car insurance from one person to another in the event of buying/selling a vehicle. It is not possible to transfer the registration and full ownership of the vehicle to a new owner if the transfer of insurance has not been initiated. The seller will need the insurance of the vehicle transferred in the name of the new owner to complete the registration transfer process and sell your vehicle successfully. What’s noteworthy here is that car insurance can only be transferred if the plan has 7 months or more remaining in its tenure. If not, it is not possible to transfer car insurance from one person to another and the new owner will have to buy a new policy for the vehicle.
As evident, it is important to transfer car insurance in dubai from one person to another when you transfer the rest of the ownership details to the second owner of the car. Not only will it allow you to carry on your upcoming purchases and operations smoothly, but it will also make the life of the new owner easy. The precious moment of owning a new vehicle for the second owner can be as joyful as it should be if this small and rather easy process is handled in time and efficiently.
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