The Emirates Insurance Union reported that it is permissible to cancel the vehicles insurance by assignment or recovery, provided that there are no accidents or compensation.
The Vice -Chairman of the Supreme Technical Committee, Chairman of the Federation’s Automobile Committee, Mohamed Mazhar Hamada, told «Emirates Today» that if the insured can sell his car and the insurance is still valid, he will give up on the buyer according to what is agreed between them, but if the waiver is not returned, he can recover the rest of the document from the insured company.
He added: «In all cases, this is possible, but provided that there is no accident that has occurred, as it is not permissible for the insured, neither to assign nor recovery because it has already benefited from the insurance and the company covered the reform process and the accompanying obligations according to the agreed according to the type of document.
Hamada explained that the occurrence of the accident includes that the insured obtained compensation, reform, or others, indicating that in this case he cannot give up insurance or restore the remaining of it in the form of a sum of money.
He pointed out that the procedures include providing the company’s insured company in a manner that the insured sold the car, such as a new ownership document for the car and filling a form stating the sale.
Hamada stressed that proving the sale is essential if the car is secure against others being mandatory, as it is not possible to leave the car without insurance even if its owner wants to do so, so he must provide what is useful for selling it and its ownership to another person, indicating that in this case it is possible to give up or recover on the condition that there is no accident.
He pointed out that these procedures are known to the companies operating in the market and there is no clothing, so the insured can easily choose what is appropriate for him as long as there is no accident or a compensation.
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