Can the original owner cancel the insurance after the vehicle is transferred?
1 Answers
Vehicle transfer can cancel the insurance. Normally, after the vehicle is transferred, there are two ways to handle the vehicle insurance: one is to apply for changes to the policy information of the vehicle. This requires providing materials such as the policy invoice, the original insurance label, the vehicle transfer transaction invoice, the property registration certificate or driving license, and the ID cards of both parties involved in the transaction. These documents should be submitted to the original insurance company's business outlet for processing. It is important to note that both the original owner and the new owner (or their authorized agents) must be present in person. The other option is for the original owner to apply for cancellation of the vehicle insurance policy. The original owner can take the insurance policy to the original insurance company's business outlet to cancel the insurance. However, this situation is generally applicable to commercial auto insurance. After the contract is terminated, the insurance company will only charge premiums for the period from the start date of the insurance to the cancellation date on a pro-rata basis, and the remaining premium will be refunded accordingly. Article 38 of the "Insurance Law of the People's Republic of China": Before the commencement of insurance liability, if the policyholder requests to terminate the contract, they shall pay the insurer a handling fee, and the insurer shall refund the insurance premium. After the commencement of insurance liability, if the policyholder requests to terminate the contract, the insurer may collect the insurance premium for the period from the commencement of insurance liability to the termination of the contract, and the remaining portion shall be refunded to the policyholder. Article 39: The insured value of the subject matter of insurance may be agreed upon by the policyholder and the insurer and specified in the contract, or it may be determined based on the actual value of the subject matter of insurance at the time of the insured event. The sum insured shall not exceed the insured value; any portion exceeding the insured value shall be invalid. If the sum insured is lower than the insured value, unless otherwise stipulated in the contract, the insurer shall bear the liability for compensation in proportion to the ratio of the sum insured to the insured value. Process for canceling insurance after vehicle transfer: Visit the business office in person. Required materials include: an application for cancellation, the policyholder's ID card, a copy of the bank card, the insurance policy, and the premium invoice. Authorize an agent to handle the process at the business office. Required materials include: an application for cancellation, a power of attorney, the policyholder's ID card, a copy of the bank card, the insurance policy, and the premium invoice. However, it is important to note that if the auto insurance has already been purchased, canceling it now will result in certain financial losses, especially if the cancellation is not done properly, which may lead to greater risks of loss. Types of auto insurance: Compulsory Traffic Insurance (CTI): [Full name: Motor Vehicle Traffic Accident Liability Compulsory Insurance] is the first compulsory insurance system implemented by national law in China. The "Regulations on Motor Vehicle Traffic Accident Liability Compulsory Insurance" [hereinafter referred to as the "Regulations"] stipulate that CTI is a compulsory liability insurance where the insurance company compensates the victims [excluding the vehicle occupants and the insured] for personal injury, death, or property damage caused by road traffic accidents within the liability limits. Vehicle Damage Insurance: This covers losses to the insured vehicle caused by natural disasters (excluding earthquakes) or accidents within the scope of insurance liability. The insurer compensates according to the terms of the insurance contract. Unlike third-party liability insurance, this covers the insured's own vehicle. If you value your car, you should purchase this insurance. Comprehensive Theft Insurance: Full name: Motor Vehicle Comprehensive Theft Insurance. This insurance covers losses due to the entire vehicle being stolen, robbed, or seized, as well as reasonable repair costs for damages or missing parts and accessories during such events. Documents required from the original owner for a used vehicle transfer include: the registration certificate, driving license, and ID card.