The problem of transfer of ownership of the car


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The problem of transfer of ownership of the car with the survival of insurance in the name of the old owner

Important point

When buying a car from someone else it is very important that you buy your insurance policy and completely forget to use the insurance of the vehicle you bought from. This story highlights this problem

 

A brother bought a car from another person and the ownership of that vehicle was transferred in the name of the new owner, but the insurance remained in the name of the former owner of the vehicle on the basis that he was entitled to benefit from the insurance policy if it was valid when he purchased the vehicle pursuant to Article 8 (paragraph 13) Traffic that states the following: “Insurance of the vehicle – valid – remains in force after the sale and the new owner to update his data with the insurance company.

“Several months later, the new owner suffered an accident and was the cause of the accident 100% and the amount of compensation required more than one million Saudi riyals to include compensation for more than one and also compensation for damage to the vehicle of the other party. However, the insurance company refused to pay compensation

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Question: Why has the insurance company refused to pay compensation?

 

The insurance company refused to pay the two-point approved compensation in the compulsory insurance policy (approved by the relevant State) two: change and cancellation

With regard to change, Article 8, paragraph 2 of the Compulsory Insurance Policy, states: “The Insurer shall notify the Company in writing within ten working days of any substantial change stated in the Insurance Application Form. The Company shall notify the Insured during Three working days from the date of receipt of such notice in the event of refusal to cover insured

 

The second point is contained in the same article, paragraph 8/1 on cancellation, which states the following: “The company and the insured shall not be entitled to cancel this document after issuance in any of the following cases: 2) Transfer of ownership of the vehicle to another owner. 3) Submit an alternative insurance document from another company. If the insured wishes to cancel the insurance policy, he must return the document to the company by paying the relative portion of the subscription within fifteen working days from the date of the cancellation request “According to point 2, the insurance company says that the vehicle “has been transferred to another owner” and is therefore void

 

Notes:

 

First, there is a conflict between the traffic system and the terms and conditions of the compulsory insurance policy.

The traffic regime gives the new owner the right to benefit from the insurance in force but does not specify any time for the new owner to review the insurance company to update his data (ie he left it open) 10 days in the event of any change to the insurance policy purchased, the sale of the vehicle is considered “substantial information” and the old owner to inform the insurance company about the sale of the vehicle and if not do it is contrary to the terms and conditions of the contract between him and the insurance company. This conflict created a problem for the former owner and owner of the new vehicle as well as for the insurance company

Second, with regard to the position of the insurance company and its adoption on point 2, it is clear that the insurance policy is not considered to be canceled automatically, directly or retroactively, simply because the insurance company knows this after the accident. However, or the new owner of the vehicle. Therefore, the owner of the vehicle who issued the insurance in his name is considered to be in breach of the terms and conditions of the insurance policy he has purchased and may bear the financial liabilities that may arise from accidents caused by the new owner (from the point of view of the insurance company) because he had to inform the insurance company to sell his vehicle to another person

 

Thirdly, it is clear that the purpose of the traffic system is to minimize the situations that may make the vehicle go on the streets without insurance coverage. This is an important and noble goal for preserving the rights of the affected people, but it seems to me that the formula or method used (in case of selling vehicles) is not the best option available. I believe that the correct formula is that the ownership of any vehicle is transferred only with an insurance policy bearing the name of the new owner either from a new company or through updating the new owner’s data of the insurance policy in force

 

Fourth: The insurance contract is a “personal contract” in the sense that the insurance applicant/buyer is a key element in the acceptance or rejection of the insurance application. For example: if the insurance company sold a 40-year-old person, an employee, a married person with children, etc. This person sold his car to an 18-year-old man, unemployed, single, has a record of many accidents, etc. (Stapling) insurance company without knowing the risk of this kind? In the insurance industry, in what we learned as agents in the insurance market, and what we know and explain to insurance scholars in the Kingdom, referred to in Module 5 (p. 119) of the SAMA Insurance Principles book, we read: “… If a car or building is sold, It is not sold with property. The identity of the policyholder is an important consideration in the IPO for insurers, and the insurer may not want to provide insurance coverage to the new owner

READ  different coverages of car insurance

 

Fifth: An important point that some may not pay attention to is that if there is a “comprehensive insurance” document, and if there is damage to the insurance car that was not transferred on behalf of the new owner, these damages will not be covered by the insurance company, because this part of the document is not subject to the terms of the insurance policy Compulsory.

In the sense that the insurance company will compensate the injured party only (because it is legally binding), but the system also gave it the right to file a claim for compensation against the party that caused the loss, and therefore the company may resort to the courts to recover its rights or raise the name to Sama for listing Black

The conclusion is that we advise buyers of any new vehicle to be the insurance policy of the vehicle in his name and not in the name of anyone else in order to avoid the problems that may result from the fact that the vehicle name and document in the name of another person, the cost of compulsory insurance is not worth all the suffering and problems that may ensue. I also hope that the traffic will reconsider the current formula and that the ownership of any vehicle will not be transferred except by an insurance policy bearing the name of the new owner either from a new company or by updating the new owner’s data of the insurance policy in force

SAMA has instructed insurance companies to enable the insured to recover their funds after the cancellation of insurance from the vehicle owner

 

SAMA’s guidance came after the organization noted irregular practices related to the cancellation of vehicle insurance policies from insurance companies’ offices

 

In its letter to the insurance institutions, SAMA stated in its letter to Article 8 of the unified document on compulsory motor insurance that the insured should cancel the insurance policy and return the document to the company accompanied by the cancellation request. To pay the proportional part of the subscription within 15 working days from the date of the cancellation request and a reference to the irregularities observed by the Corporation regarding the cancellation of vehicle insurance documents

 

Accordingly, I would like to inform you that all insurance companies must comply fully with the following procedures in case the Insured wishes to cancel the insurance policy and recover the relative portion of the subscription according to the cancellation schedule according to the verification of the transfer of ownership of the vehicle to another owner before completion of the cancellation process. Cancellations of vehicle insurance documents through the insurance company’s head office only. Requests for canceling documents shall be received from the points of sale of the company as well as through its agents. The process of paying the relative part of the subscription to the insured shall be by either issuing a check or transferring to the insured account

There are a number of procedures for the extraction of licenses for cars according to the Traffic Law, to relieve the burdens of citizens, and there are steps through which the procedures to transfer the registration or ownership of cars belonging to the leaders of vehicles, including:

 

 

Proving the identity of the owner of the vehicle a national number or passport

 

Submit a request to transfer the registration on Form 251 passage

 

A certificate of data from the entity in which the vehicle is originally registered in the case of the non-insured license

 

Submit a form of technical and environmental examination and the validity of the extinguisher

 

Submission of compulsory insurance

 

Submit a deed of transfer of ownership

 

Certificate of acquittal for violations issued by the competent prosecution

 

Exchange of metal plates and insurance license

Types of car insurance

There are two main types of insurance on vehicles:

 

First: third-party insurance: This type of compulsory insurance from the passage in Saudi Arabia and a number of countries in the world, which covers the damage on the other parties if there was an accident, was wrong. This means the repair of other people’s car but does not fit your car. If you have an accident and you are wrong and you have this insurance, it protects you from entering the prison (transit prison) in Saudi Arabia, but if you do not own it, you enter the intervention of the reservation until you pay the damage to the other party. Some traffic transactions are not covered by this type of insurance, such as renewal of the form, transfer of ownership or the like. Often the price of this type of insurance is not subject to the value of the car but depends on the type of car, city, age, and history of accidents

Second: Comprehensive insurance: It is optional in Saudi Arabia is the one that covers the damage from you and others is a third party insurance and insurance for you. It means that if you become an accident, whether you are a glutton or an invalid you have to repair your car. This insurance is more expensive than against others and depends on the price of the car (proportion of the price of the car) and often pay the amount called the amount of the endurance when you claim to repair an accident if you are the culprit. The difference between the comprehensive and the third party includes your car and the third party does not include it and benefit from comprehensive insurance in other cases

READ  different coverages of car insurance

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Accidents unknown to the second party such as found your car shocked and do not know who hit it

Theft

Natural disasters and fire

The annual car insurance is a significant part of the expenses incurred by the owner each year on his car, which usually ranges from premiums (if new), fuel, maintenance, registration fees, parking (if needed), etc., including insurance

 

Some say that the car’s expenses are comparatively comparable to household expenses, so any savings you can get in any part of your car expenses will return to you with a big bonus by saving a bit of money that can be invested in other things

 

So, try to get the cheapest possible insurance, but beware, too, cheaper does not mean the most appropriate, and for the most expensive is not necessarily appropriate. So you have to choose the most appropriate insurance very carefully, and in turn, we studied the insurance market to come out with six easy and clear tips to help you get the cheapest and most appropriate insurance for your car in case you followed. Here are these tips:

 

 

 

Search more … Save More:

 

Intensive and correct search for the right insurance offer for your car is the first and most important step in obtaining the best insurance. There is no argument these days not to conduct extensive research in the presence of websites that provide many trouble traditional search methods as well as give you more details and time to study the best offer. We also recommend that when you get a good offer try to contact another company that offers a similar offer and negotiate that you got a bid for a certain value; can you give me a better offer

 

Do not buy what you do not need:

 

This point is very important and the previous step is the best way to it. No insurance that has several points covered by it may need much of it. For example, there is silver and a gold deposit, and the latter includes services not provided by the first, such as saving your car if suspended in the middle of a road off, insurance coverage of accidents in neighboring countries, and compensation in case of loss of some valuable personal property. For example, if you do not ever go out on the road, you do not need to travel to neighboring countries in your car and do not usually carry any valuable property inside your car. So what is the dais to pay a higher amount for a golden insurance that provides you with services you will never need

 

 

 

Avoid some additional services:

 

When you purchase insurance for your vehicle, most companies offer additional services such as providing an alternative car until your car is repaired after an accident or paying compensation to a driver and passengers affected by the accident. There is no doubt that this has great benefits, but if we recommend paying higher insurance to cover the injury of the driver and passengers, it does not apply to the provision of alternative car

 

 

 

Higher value. Insurance more expensive

 

Of the words played by the insurance companies tend to attract customers to pay more; is the total car value. It offers a higher car rating if you happen to have an accident that completely cancels the car it is no longer workable or fixed) for more fees. The most helpful thing for insurance companies is greed. You would be happy if you got $ 23,000 for your car instead of $ 20,000 if your car was canceled and for $ 40. That is, this relatively small amount will return you $ 3,000 later … What a deal you are a fool! The cancellation of the car is only due to a very eloquent accident that may not come out of it to take the additional amount, or natural disasters such as floods or accidents such as fires, all of which are rare and occur very. Remember that greed is good; your price may not be as high as $ 20,000

 

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bear the amount of tolerance:

 

In case you are the cause of an accident, you have to pay what is known as the “endurance amount” as part of the repair cost. This amount is usually determined based on the value of your original car. However, many insurance companies are bidding to raise the original insurance price in exchange for a reduction in the value of the endurance. For example, the original insurance for a car will be raised from $ 500 to $ 600 for a reduction of $ 150 to $ 100. That is, after only two incidents you will be compensated for the additional amount of insurance, and with the third incident you will be rewarded is not it? This is true, but only if you are a driver

 

 

 

Are you a blind driver?

 

If you are, then you really need a bank to afford to pay for your car insurance. From the previous paragraph, you can get cheaper insurance if you increase the amount of endurance, and this is probably the most appropriate option if you are a driver cautious enough. Companies that will increase their annual insurance will blacklist any driver who causes a number of accidents within a year or two or more. Some companies will offer a special discount for each driver with a clean record. More caution behind the steering wheel and attention means more savings and safety as well

 


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