INSURANCE IN THE UAE
As in most other countries, a minimum level of motor insurance is mandatory in UAE. Beyond that specific requirement, the ever-growing number of cars on the UAE’s increasingly busy roads makes it desirable – even necessary – for drivers to have well-defined and good-quality car insurance in place in the event of an accident.
THIRD PARTY LIABILTY INSURANCE
Third-party liability is the minimum level of motor coverage stipulated by UAE law. The aim is to protect the interest of an innocent party who has to bear physical injuries, or damage to personal property because of someone’s negligent driving.
This type of motor insurance only covers an individual’s legal liabilities towards others, including:
· Death of or bodily injury to any person including the passengers in the vehicles other than yourself or the driver at the time of the accident and their families and your employees.
· Damages for materials and property except those owned by you or the driver.
In short, third party insurance is designed to cover your legal liability to Third Parties in respect of death, bodily injuries or damage to property suffered by a third party as a result of your negligent driving.
So, for example, if you were to crash into another car and the accident was deemed to be your fault, then your liability to the driver of the other car would be covered. It will not cover you for any fines you may incur, however. Nor would you be able to claim for damage to your own vehicle or injury to yourself.
Third party liability insurance covers the compulsory insurance requirements and might be tempting for those on a restricted budget, of for a price-conscious customers who mainly evaluate insurance products focusing only on price. But it is imperative to remember that it only covers your liability towards others.
The normal way of extending the basic Third Party Liability insurance is to add Fire and Theft cover. This means that in addition to the legally required minimum insurance cover, your won vehicle is insured against any loss or damage caused by fire or theft.
Despite advances in alarms, immobilizers and other anti-theft technology, you cannot be certain that your car will not be stolen – or at least damaged by someone attempting to steal it. If you have Third Party with Fire and Theft cover, you will be able to claim for any such damage or loss to your car (in most cases including the theft of components such as a satnav unit subject to a maximum value – but check that before you commit to a particular policy).
The fire provision can apply to any fire damage at all, including the situation when a car is burnt by thieves to cover their tracks.
There will usually be an ‘excess’ amount that you will be responsible for paying before you can recover any outlay in the event of a fire or theft claim.
Third party, fire & theft policies tend to have less costly premiums than comprehensive insurance; but before opting for this cover, you should consider what you will not get from your insurance policy that you will under a comprehensive one.
The main difference is damage to your car – a comprehensive insurance policy will pay for repairs to your car after a collision (or it will pay you the market value for the car if the insurer judges that it is uneconomical to repair the vehicle).
If your car is worth anything above about AED 20,000, you should certainly consider upgrading to comprehensive cover. This is to ensure you do not have to deal with the financial burden of writing-off an expensive car if you have an accident and you cannot afford to repair the bill.
Comprehensive insurance will cover your car as well as third-party liabilities – and you will be covered for damaged to your own vehicles, even if the accident is considered to be your fault.
There are extra benefits which a motorist may get with comprehensive cover. For example, the insurer may provide you with a courtesy car in the event that your own has to be repaired due to an incident. This is not provided by all insurance companies however, so be sure to look carefully into your policy to understand all the benefits offered.
The full scope of protection/ benefits offered by comprehensive motor policies can differ greatly among insurance products and providers. Consumers would be wise to avoid focusing on price alone and pay attention to the promised benefits and service levels. It may be tempting to accept the cheapest quote on offer, but you risk being left in the lurch when it comes to making a claim.
· You will need to show a valid insurance policy before you register (or re-register) your car. You won’t get the registration certificate without it.
· Buying insurance online gives you the opportunity to proceed at your own pace and to consider all of the options before you commit to a particular policy. This can make for an instructive comparison with policies sold in person by agents. The online insurers have systems that are automatically linked to the different traffic departments; once you’ve signed, your policy will usually be delivered to you by hand.
· If you can increase the voluntary excess on your policy, the less financial risk you are to the insurer and the lower the premium you’ll have to pay.
· Look for extras. Many policies now offer extras such as breakdown cover or a courtesy car; these can be reassuringly useful. Equally, you may be able to decline the extras and so lower the price.
· If you ever travel into Oman, you’ll need to show an appropriate insurance document for the country before you’re allowed to enter. You can buy temporary insurance at the border – or you can opt for a UAE policy that includes Oman insurance anyway. Some include GCC-wide insurance, in fact.
Be safe and God bless us more,,,
Psyche
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