QUESTION
We have a client who imports and sells motorhomes. As part of their final sales process they arrange notification of transfer of ownership on Waka Kotahi website, and get motorhomes registered and complete final checks before handing over to customers.
They have backed into a building with a motorhome while completing their final preparation for handover/delivery to the customer. The accident occurred a day after they updated the Waka Kotahi website with transfer of ownership information.
The insurers are relying on the Waka Kotahi update of ownership details to decline the claim as they claim it proves the vehicle was no longer owned by our client, and therefore no longer insured under their vehicle stock policy.
We've argued that updating the website doesn't constitute transfer of ownership, conversely, if the website is not updated does this mean transfer of ownership never occurs? But the insurers are sticking to their declinature.
Is this correct? When does the legal transfer of ownership actually occur?
Simon Moss replies
If the change of ownership is completed online my understanding is that the change is immediate.
But if the buyer has also paid for the vehicle when change of ownership occurs (which you would expect to be the case), then that would further support the insurer's position.
