Motor Insurance Policy Changes

The one constant in life changes, and the same goes for the insurance industry especially in a fast-moving market like the UAE. We have all come across the changes happening currently in the medical insurance landscape and the mandatory law.

Our goal at Petra Insurance is to provide as much clarity as possible with all the various details and changes happening.

Accordingly, there is a new mandate from the Insurance Authority on the motor and cae insurance policies that will come into effect on 1st January 2017 that will have certain changes to the standard existing motor insurance policy.

Please keep in mind that further clarity is needed as there are more details to confirm and we are investigating this on a constant basis. However, we wanted to be proactive and give you a bit of a “heads up” now, so you are one step ahead.

PLEASE NOTE THE MAIN HIGHLIGHTS:

Personal Accident Cover

• Personal accident benefits for spouse, children, and passengers are automatically included with the amount of AED 200,000/- person; it was an option before.

Third Party Liability Property Damage Cover

• Third party liability property damage coverage will be increased to AED 2,000,000/- for each incident which is an increase from the minimum requirement of AED 150,000/-.

Rent A Car Cover

• Rent A Cover is mandatory in the new mandated policy and can be availed up to a maximum of ten days with a similar type of car.
• You can also opt for a cash benefit of AED 300/- per day for a maximum of ten days.
• This will also apply to the third party liability insurance policyholder in case of any accident if the driver is not at fault.

No Restriction Due to Age, Gender or Driving Experience

• With the new unified policy, there are no restrictions based on gender, age or their experience as many insurance companies were declining those before.

No Deductible For Third Party Liability Policy

• There will be no deductible for the third party liability policyholder which was charged by some of the insurance providers in the market.

Compensation For Own Damage Claim Customer

• If there are any own damage claims and the vehicle is in repair for more than 15 days without a justifiable reason, the insurance provider is liable to pay compensation to the policyholder.

Natural Disaster Declaration

• Any natural disaster such as floods, hurricanes, and earthquake, must be declared by the official concerned organization as a natural disaster so that the insurance providers can cover such claims.
• The purpose of this rule is to avoid claims declined by the insurance providers that are not technically declared as natural disasters.

Maximum Deductible

• The maximum allowable amount for private vehicles will be AED 1,400/- regardless the value of the car, and this includes luxury cars.

Deductible Options

• As per the new regulations from the Insurance Authority, the excess will be standard based on the value of the vehicle, and there is no opportunity to increase the excess to reduce the premium.

Total Loss Vehicle Declaration

• In the case of any accident, if there is damage to chassis, pillar or any other part of the car that is attached to the primary structure and the parts which can be pulled, cut or welded, the vehicle must be declared as a total loss in all such cases.

Usage of Spare Parts

• In the case of an accident, the Insurance provider should replace the parts which are linked with the suspension of the vehicle and safety-related parts like seat belt and brakes for any model of car.

We hope to have informed you well, and we’ll keep you posted of any changes.