The General Insurance Association of Barbados (GIAB) has expressed alarm at the number of improperly registered vehicles on the country’s roads. This issue has become more evident because GIAB has received a growing number of reports from individuals who have been contacted by insurance companies, police or other government agencies regarding vehicles that they no longer own. These 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 individuals do not complete all the steps required when selling or buying cars. 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 buy cars, and they too fail to inform the BLA about the purchase. 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. Consequently, the vehicle is considered to still belong to the owner on record, and with electronic traffic tickets now being emailed directly to drivers, this will be an additional challenge for those who are still on record.

To address these growing concerns, the GIAB urgently cautions the public that it is essential for both buyers and sellers to adhere strictly to the legal requirements for vehicle registration.

Another issue to be addressed by car owners is that of selling vehicles with original registration plates, which is not recommended. 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. However, if the vendor decides to keep the plates for future use, on another vehicle, that information must be communicated to the BLA, along with the change of ownership.

It is also an immediate requirement that insurance companies are kept abreast of the sales of all vehicles under their coverage to ensure that policies remain valid and in good standing. Insurance coverage is not transferable with the sale of the vehicle.

The General Insurance Association of Barbados encourages all motorists to understand the importance of complying with the change of ownership regulations, in order to eliminate the amount of improperly registered vehicles on the island’s roads, and to alleviate the unnecessary challenges arising from non-compliance.