Whenever a major accident happens in the UAE, the insurance company evaluates the damage. If the repair cost is more than 50% of the insured value mentioned in the policy, most insurance companies declare the vehicle as a total loss and pay the insured amount to the car owner.
Step 1: Transfer of Ownership After Total Loss
Once the car is declared as total loss, the vehicle ownership must be transferred to:
- The insurance company, or
- An auction house assigned by the insurance company
This transfer is mandatory before any further process.
Step 2: Auction of the Vehicle
After the ownership transfer, the vehicle is auctioned to the public.
There are two possible scenarios:
- The auction company repairs the vehicle before selling it, or
- The buyer purchases the vehicle and repairs it independently.
Step 3: Repairing the Vehicle
After purchasing the vehicle from the auction:
- The buyer repairs the car
- Repairs must meet UAE roadworthiness standards
Only after proper repairs can the vehicle proceed for registration.
Step 4: Required Documents from Auction
The auction company provides essential documents, including:
- Possession certificate
These documents are required for inspection and registration.
Step 5: Registration Test and Insurance
Once the vehicle is repaired:
- The car must undergo a registration test
- If the vehicle passes, insurance must be issued in the buyer’s name
Step 6: Vehicle Registration
After registration test and insurance:
- The vehicle can be registered normally through the relevant authority
Conclusion
Registering a vehicle that was previously declared as a total loss in the UAE is completely possible, provided the correct procedure is followed. From ownership transfer and auction purchase to proper repairs, registration test, insurance, and final registration, each step must be completed in line with UAE regulations. As long as the vehicle meets roadworthiness standards and all required documents are in place, it can be legally registered and driven again.
If you are unsure about any stage of the process or want professional assistance to handle inspections, documentation, insurance, and registration, Renew My Car Registration can guide you through the entire process smoothly and efficiently.
Also see: Tranafer Total Loss Car To Insurance Company With Renew My Car Registration