A new insurance system for UAE has been announced by the Insurance Authority allowing for claims up to Dh2 million for property damage resulting from an accident. Previously, the claim amount was Dh250,000.
The new system categorises vehicle insurance through two policy documents. The first policy is mandatory and relates to third party liability in accordance with traffic rules and regulations. The second document deals with vehicle loss or write-offs. This optional policy is for car owners wanting separate insurance for their vehicles as opposed to a single comprehensive insurance policy in one document.
UAE’s previous insurance system has been in place for the past 27 years, although two new versions were presented in the interim. The authorities hope that the new insurance system for UAE will be more in line with global standards.
Benefits for the motorists in the new system include a compensatory amount of Dh300 for 10 days to rent a vehicle in case of an accident. The new policy also includes an additional deductible amount (to be determined by the insurance company) which is limited to max 10 percent of compensation value in case of drivers under 25 years, 15 percent for public vehicles and taxis and 20 percent for sports and modified vehicles.
The insurance company is also liable to pay an amount of Dh200,000 in case of death of a family member of the insured family, driver of a rental car, driver of a public vehicle or a driving-learning vehicle. Liability amount in case of injury will be determined as per the extent of the damages.
Furthermore, the insurance company is liable to pay the market value of the vehicle and repair the damaged vehicle if the repair cost is in excess of 50 percent of the car’s market value. This amount cannot be more than Dh2 million.