When you sell your car to someone else or plan to buy a used car, you need to transfer the ownership of the vehicle. You might also consider transferring the car insurance. In this article, we'll shed light on how to transfer car insurance from one person to another in the UAE, including the necessary steps, documents, and procedures.
Transferring Car Insurance When Selling a Car
The conditions for transferring car insurance from one person to another vary depending on the insurance companies, but generally, several conditions must be considered. Firstly, one of the primary conditions for transferring insurance to the new owner when selling the car is the validity period of the document. If it's valid for less than 9 months, the insurance cannot be transferred to the new owner. Secondly, it's essential to ensure that the current insurance document includes an option for transferring ownership to a new owner. If the terms do not include this option, you can request a refund for the remaining value of the document. If the insurance document is valid for more than 9 months, you can apply to the insurance company to transfer the document's ownership to the new car owner. The details of the new car owner must be provided to the company to ensure they meet the criteria set by the company for the insurance document. If not, the insurance company may reject the transfer request. If the transfer of insurance to the new owner is rejected, UAE insurance law allows for the reimbursement of the remaining unused months in the insurance document.
Important Considerations
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Type of Insurance: Commercial vehicle insurance cannot be transferred except to the same insurance company that issued the original document.
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Required Approvals: Approval from the insurance company for the transfer process is necessary, in addition to the seller's consent.
Documents Required for Transferring Car Insurance from One Person to Another
The required documents for transferring insurance vary from one company to another and from one case to another, but generally include the following:
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Copies of the ID cards of both parties (seller and buyer).
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Copy of the car sale contract or ownership transfer certificate.
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Original vehicle registration document.
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Current insurance document.
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Vehicle inspection certificate (requirements for issuing it vary among insurance companies).
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Ownership transfer request signed by both parties.
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Original vehicle registration card from the Road and Transport Authority.
Steps to Transfer Car Insurance from One Person to Another
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Contact the Insurance Company: Whether you're the seller or the buyer, contact the insurance company to inform them of the intention to transfer ownership of the car and insurance.
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Gather Required Documents: Prepare all necessary documents in advance to expedite the transfer process.
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Submit Documents: You can submit the documents either by visiting the company's branch or through their electronic channels, depending on the company's policies.
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Payment of Dues: The insurance company may require payment of administrative fees or differences in premiums depending on the type of insurance and its duration.
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Update Insurance Document: Once the insurance company receives all the necessary information and documents, they will update the insurance document to reflect the new owner's information.
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Receive New Insurance Document: After approval of the transfer and payment of dues, the company will issue a new insurance document in the name of the new owner.
It's important to note that transferring insurance documents is not automatic and may take some time depending on each insurance company. It's always advisable to consult the insurance company regarding the process and the time required for insurance transfer.
In Conclusion
By following the mentioned steps and procedures, you can smoothly and effectively transfer your car insurance from one person to another in the UAE. Remember to inform the insurance company and complete all dues to avoid any future problems.
