What are the impacts of not transferring compulsory traffic insurance?
2 Answers
The impacts of not transferring compulsory traffic insurance are as follows: 1. Invalid insurance: With the transfer of vehicle ownership, the insurance rights also transfer accordingly. This means the insurance remains valid. 2. Impact on claims: Not transferring the insurance will affect claims in case of an incident. If the policy's insured is not changed to the new owner, the insurance company's system will default the insured to the original owner, who is also the default beneficiary. Therefore, this situation will affect claim payments. 3. Impact on reporting incidents: The new owner must remember the policy number or owner information to quickly complete the incident report.
I've encountered many cases where clients failed to transfer compulsory traffic insurance (CTI) on time during my auto repair career, leading to messy claims. For example, when an accident occurs, the new owner goes to the insurance company for compensation, but the system still shows the previous owner's name, immediately blocking the process. I must remind everyone that without insurance transfer, the new owner can't directly claim compensation—they need the original owner's cooperation, which is particularly troublesome in emergencies. Worse yet, incomplete transfer procedures may render the CTI invalid, causing the vehicle to fail annual inspections, and police checks could result in vehicle impoundment and fines. There's also financial dispute risks: if the original owner forgets to cancel the policy and keeps paying, they suffer losses; or the new owner might face rejection when renewing the insurance. In short, always complete the insurance transfer after buying/selling a car—otherwise minor issues become major risks. I always recommend handling the insurance transfer through proper vehicle management offices—don't try to save that little bit of time.
