Question: I need to renew my car insurance and I’m receiving vastly different quotes for similar coverage. Are there regulations on the premiums insurers can charge? Please advise.
Answer: In the UAE, motor vehicle insurance policies must comply with certain mandatory clauses and conditions.
This includes general conditions such as:
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Insurance company’s obligations – like providing compensation, vehicle repairs, or replacements.
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Insured’s obligations – for example, premium payments, taking precautions, maintaining ownership.
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Exclusions – including indirect losses, damage from overloading, unlicensed drivers, or accidents outside the policy’s geographical limits.
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Recourses against the insured.
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Policy termination clauses.
These are specified under the Unified Motor Vehicle Insurance Policy Against Loss and Damage, as per UAE Insurance Authority Board of Directors’ Decisions No. 25 and 30 of 2016.
Additionally, an insurer and the insured can agree on extra premiums based on the policy’s terms and conditions. This aligns with Clause no. 5 of Chapter One: General Obligations of the UAE Unified Motor Vehicle Insurance Policy Regulation, stating: “The Company and the Insured may agree, using riders for an extra premium and within the policy’s terms, to cover additional damages not specified in this Policy, such as:
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Insurance against damages to the Insured’s or Driver’s properties during an accident, or properties under their care, via a rider or separate policy.
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Coverage for damages or risks occurring off-road.”
Therefore, UAE car insurance policies must adhere to these regulations, and any additional coverage depends on the insurer’s offerings.
Decision No. 30 of 2016 regarding Motor Vehicle Insurance Tariffs sets a maximum premium of five per cent for saloon vehicles and seven per cent for four-wheel drives for a 13-month policy.
Ashish Mehta, founder and Managing Partner of Ashish Mehta & Associates, is qualified to practice law in Dubai, the UK, and India. More details about his firm at: www.amalawyers.com. Send your questions to: news@khaleejtimes.com or Legal View, Khaleej Times, PO Box 11243, Dubai.
