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How to Transfer Car Insurance from One Person to Another Person in the UAE

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What Does Car Insurance Transfer Mean?

Car insurance is mandatory by law in most countries, including the UAE. It protects the owner against unforeseen risks such as accidents, theft, and legal claims. Every car owner has to purchase car insurance as it is a legal requirement.

However, car insurance is unnecessary if you no longer own the vehicle. So, if you are selling your car, you can transfer car insurance to the new owner. Likewise, if you are buying a second-hand car, you must ensure the previous owner transfers the car insurance policy to your name.

Why Do You Need Car Insurance in the UAE?

It is mandatory under the UAE motor vehicle laws for every car on the road to have insurance coverage. Mandatory insurance protects the car owner against potential third-party legal claims in the event of an accident involving the insured vehicle.

While third-party vehicle insurance is mandatory, you can purchase a comprehensive car insurance policy to get additional protection against theft, loss, or damage to your car.

How Do You Transfer Car Insurance in the UAE?

The car insurance ownership transfer procedure is fairly simple and straightforward. The requisite documents have to be submitted correctly to facilitate the transfer of car insurance to the new owner.

However, there is a specific deadline to transfer car insurance once you commence the car ownership transfer process. The insurance policy is considered null and void if not transferred within this deadline. The new owner cannot file an insurance claim until the policy has been transferred to his/her name.

Documents Required for Car Insurance Transfer

A document checklist is helpful to ensure seamless transfer of car insurance. The set of documents required for car insurance transfer online is as follows:

Valid Emirates ID

This is a crucial identification document that is required for all legal transactions, including car insurance transfer.

Registration Certificate (RC)

The RC is a document that proves the ownership of the vehicle. It also contains other details such as the vehicle model, engine number, and the year of manufacture.

Existing Insurance Policy

A certificate of the existing car insurance policy is required for the new insurer to assess the risk and fix the premium on the new policy.

No Claims Certificate (NOC)

An NOC is required from the vehicle’s previous owner to transfer car insurance to the new owner.

Valid Driving License

It is mandatory to possess a valid driving license to own a car in the UAE.

Car Inspection Report

A vehicle inspection report certifies that your car is safe and meets all the required norms. The report has to be scheduled and done within the last 24 hours of filing for transfer.

Application Form

Duly filled application forms are required for car insurance transfer.

Importance of Car Insurance Transfer

It is imperative to transfer vehicle insurance on account of the following two reasons:

To Avoid Hefty Fines & Legal Suits

Failure to transfer car insurance to the new owner can cause legal troubles. Driving a car in the UAE is illegal without a valid vehicle insurance policy. For insurance to be valid, both the vehicle registration certificate and the car insurance policy should carry the same name. If not, the insurance shall be considered null & void. Consequently, there can be hefty fines for traffic violations.

Retention of No-Claim Bonus (NCB)

Retaining a no-claim bonus (NCB) is possible only after the car insurance has been transferred to the new owner. Please inform your insurance provider and obtain the NCB retention certificate to avoid missing out on your accumulated benefits.

Things to Keep in Mind While Transferring Car Insurance

It is vital to transfer car insurance as it’s mandatory for owners to insure their vehicles before driving them on the roads of the UAE.

The transfer of registration and ownership are not deemed to be complete unless the car insurance is also transferred to the new owner.

However, there is a fixed deadline for transferring car insurance once the process of ownership transfer has been initiated. The insurance is considered invalid if the transfer is not made within the due date.

Further, the car insurance policy can be transferred only if the remaining policy tenure is at least seven months. Otherwise, the new owner has to purchase a new insurance policy for the car.

How Long Is the Car Insurance Policy Valid For?

Most motor insurance plans in the UAE have a validity of 12 months. However, car insurance is unique as it carries a validity period of 13 months. It includes the normal 12-month period and a grace period of 1 month for car insurance renewal. It ensures that every car owner has sufficient time to renew the policy and avoid legal issues that may arise due to expired car insurance.

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Frequently Asked Questions on Car Insurance Transfer

Yes. Third-party liability car insurance is mandatory in the UAE. It is necessary to protect the car owners against potential legal claims involving the insured vehicle.

It is always advisable to transfer vehicle insurance. Not transferring the same can result in needless legal hassles for both the seller and the buyer. The insurance policy may become invalid and leave both parties unprotected in the unfortunate event of an accident.

No. Transferring the no-claim bonus (NCB) benefits to the new owner is impossible when you transfer car insurance. NCB is given by insurance companies to car owners who have not made any claims during the policy period. However, you can transfer the NCB to your car insurance policy when you purchase it.

It essentially depends on the insurance company and the terms & conditions associated with the policy. Please check the policy documents and contact your insurance provider for details.

Disclaimer: The information mentioned here is gathered from sources deemed to be reliable & trustworthy. Prominent Insurance Brokers does not promote or recommend any product or service.