Rise in improperly registered vehicles sparks warnings from insurers, authorities

Motorists have been urged to take urgent action to comply with registration and transfer laws, as insurance firms, joined by the Barbados Licensing Authority (BLA), reported a surge in vehicles on the road that remain registered to people who no longer own them.

The problem has become more evident as it continues to receive “a growing number of reports from individuals who have been contacted by insurance companies, police, and other government agencies regarding vehicles that they no longer own”, said the General Insurance Association of Barbados (GIAB) in a statement.

“Persons often have no record indicating that they have sold the vehicle or transferred it to another party. As a result, they may be held liable for any lapses in insurance coverage, or any illegal acts in which the car is involved.”.

This situation arises when people fail to complete all the steps required when selling or buying, as the GIAB explained: “Their first mistake occurs when car owners sell their vehicles but do not notify the Barbados Licensing Authority (BLA).

The second is when new owners purchase cars and fail to inform the BLA about the transaction.

“In the absence of notification from either the vendor or the purchaser regarding a change of ownership, the vehicle’s status remains unchanged in the public records maintained by the BLA,” the insurers’ association added.

The GIAB also cautioned against selling vehicles with original registration plates. “If the car is to be removed from the vendor’s location, the purchaser should apply for temporary plates to move the vehicle until they can complete the registration process,” it advised. “If the vendor decides to keep the plates for future use on another vehicle, that information must be communicated to the BLA.”

It also reminded motorists that insurance cover “is not transferable with the sale of the vehicle” and urged them to inform their insurers of any change in ownership promptly.

The BLA echoed the insurers’ warning, reminding vehicle owners that under section 5 of the Road Traffic Act, “no person shall use or keep a motor vehicle for use on any road unless it is registered in accordance with this section”.

Vehicle owners must notify the Chief Licensing Officer in writing of any sale, transfer, extended period off the road, or change of address — and inform their insurance company as well.

“To facilitate this process, vehicle owners may download the Sale of Vehicle, Transfer of Vehicle, or Retention of Vehicle Registration forms from the BLA’s official website at www.bla.gov.bb,” the authority said.

The BLA also urged buyers of used vehicles to exercise due diligence by verifying the vehicle’s legal registration, rightful ownership, and any outstanding taxes or financial liens.

“Buyers should confirm whether the vehicle is legally registered, whether the seller is the rightful owner, whether there are outstanding taxes, and whether any financial institution has an interest in the vehicle,” the authority warned.

The authority advised that sellers must remove registration number plates before completing a sale. Purchasers should apply for temporary registration number plates (LA plates) to legally transport the vehicle until the new registration process is complete.

(LG)