Essential Documents for Transferring Car Insurance in the UAE
Written by Kritika
There are two main types of car insurance – comprehensive car insurance and third-party liability car insurance. Whichever of the two you take, it is mandatory. A lot of people get confused when they have to transfer the car insurance to another person. In this guide we provide you all the information related to car insurance transfer from one owner to the new owner.
How to transfer car insurance?
Don’t get hassled if you are thinking of car insurance transfer. The process is fairly simple and convenient. All you need to do is collect all the required documents (as mentioned in the next section) and submit them. Keep in mind that there is a deadline on the transfer of insurance after the process of ownership transfer has been initiated so make sure that you are prompt when it comes to transfer of car insurance from one person to another. If you don’t transfer the car insurance to the new owner in due time, it will be considered null and void.
Documents required
If you have the document check-list, the work becomes easier. It is good to know all the documents you would need for car insurance transfer and keep them handy.
- No Objection Certificate (NOC) from the previous owner
- Document/Certificate of existing insurance policy
- Registration certificate
- Application form (filled)
- Car inspection report
- Emirates ID/Passport
- Buyer’s driving license
- Registration certificate of the car with the name of the new owner
- Inspection report of the vehicle (to be scheduled and done within the last 24 hours of filing the transfer)
Once all the documents are in place, the buyer and the seller need to settle on premium charges, transfer fee (this needs to be paid by the buyer), and insurance discount claims.
Why do you need a car insurance transfer?
- To get away from fines and legal actions
Not transferring your car insurance to the new owner may land you in legal troubles. As per the law in the UAE, it is illegal to drive a vehicle without valid insurance. Valid insurance means 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
Once you have transferred the car insurance to the new owner you can enjoy the 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 don’t lose out on these benefits.
No-claims bonus – can it be transferred to the new owner?
No claim bonuses are provided by the insurance companies to the car owners who have never claimed any insurance within a certain time period. These are additional benefits or certain leverages that the company provides to retain its clients for a long-term association. No Claim bonuses are not transferable from one person to another or from the previous owner to the new owner.
But that does not mean that your driving carefully for so many years will go for a toss. 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. A no-claim bonus retention form and no-claim bonus certificate are required from your insurance provider to ideally get your bonus transferred to a new policy.
What if the car insurance transfer is not done?
It is recommended that you keep your car insurance in place, because not having one or not transferring the car insurance to the new owner may land you in trouble.
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. 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. If in case you meet with 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).
Now moving on to the seller’s point of view, you will lose the no claim bonus as it can only be redeemed when you renew the car insurance policy or when you buy a new one. You are required to complete the car insurance transfer process to obtain the NCB retention certificate from the insurance company so that you can apply for it while buying your next car insurance.
When is the car insurance transfer due?
Since car insurance is mandatory in the UAE, it is important to transfer the car insurance to the new owner in due time to keep the benefits going. 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 needs to transfer the car insurance in the name of the new owner to complete the registration transfer process and sell his vehicle successfully. Keep in mind 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.
Author bio:
Kritika Manchanda is a content writer with BuyAnyInsurance. She has more than a decade of experience of churning out SEO friendly content. When she is not writing, she is either reading, or making travel plans.
Related Article:
Track UAE visa status Online through Passport Number, GDRFA & ICP Portal
A Comprehensive Guide to Transferring Car Ownership between Emirates
An Ultimate Emirates Vehicle Gate Guide: Registration, Mulkiya, Insurance & more
Contact Us:
Originally published Dec 05, 2022 16:14:57 PM, updated Jun 05, 2024
