With several options to choose from, selecting the right car insurance can be a challenging task for you. Car Insurance is important in that it plays a key role in offering your vehicle additional protection against loss or damage owing to accidents, thefts or fire accidents. Besides the comprehensive coverage, you can choose from a variety of additional covers ranging from removal of dents to cash benefits among others. Some insurance companies may provide you with an alternative car when your own car is damaged, provided you had chosen the ‘rental of alternative vehicle’ option during policy inception upon payment of additional premium. Some companies also offer a ‘no claims discount’ which is a discount provided on the premium you pay, when you have a claim-free record. According to UAE traffic laws, the car insurance and registration can’t be in two different names.
Motor Vehicle Policy
Motor vehicle policy against loss, damage and third party liability is an insurance cover according to the UAE Unified Motor Policy. This policy covers damage to vehicles owing to collision, fire, overturning, explosion, theft or any intentional malicious act (unless excluded) and accrued legal liability against third party injury/property damage.
Third Party Liability Policy
This is a compulsory cover according to UAE laws encompassing death or bodily injury to third party and damages to property of third party. This policy does not cover damage to your own vehicle.
Car Insurance Coverage
Some of the benefits of car insurance include the following:
- Repair: If the car has been in use for less than a year from manufacturing date.
- Emergency Expenses: Includes expenses related to medical treatment owing to an accident.
- Roadside Assistance: Covers flat tyre, vehicle towing and fuel delivery in addition to GCC roadside assistance.
- Damages: Many car insurance policies offer cover for damage of vehicles, provided the damage is caused by explosion or fire accident.
- 6 Months: Cover for loss of a vehicle within six months from purchase date.
- Injury: Many car insurance policies include coverage for the spouse in case of any injuries on the body.
- Legal expenses: Many policies provide coverage for passengers on a case to case basis.
- Off Road: Covers the vehicle against any off road accidents.
- Date of Birth
- Passport copy
- Vehicle details (model and year of manufacture)
- Driver’s License
- Vehicle Registration
- GCC specified vehicle (confirmation)
- Police report is mandatory for accidents and vehicle damages.
- You must produce a copy of your vehicle registration card.
- A copy of driving license must be submitted. You can submit details online for ensuring cashless settlement for repair of your vehicle. You can contact the call centre and submit your policy number.
- Claim insurance form. You have to fill in some details as listed below:
- Name of the Insured
- Contact number
- Policy Number
- Date of Accident
- Police Report
- Registration Copy
- Driver’s License
- Certificate of motor insurance: This is a document which shows that you have car insurance in tandem with road traffic laws in the UAE
- Excess: This entails the amount which you should pay while making a claim that may not be recovered from a third party.
- If the driver was in an inebriated condition at the time of the accident.
- Driver does not have a driving licence.
- Vehicle damage due to heavy load of either goods or passengers above the stated, authorised limits (in case the heavy load triggered the accident).
- Vehicle damaged due to usage other than what is specified in the policy (e.g, leased or used to teach driving).
- No claim can be made if the driver flouts traffic laws, involved in felony or motivated misdemeanour (driver absconds after the accident).
Cancellation of Policy
In most cases, you can cancel your policy by submitting evidence that your vehicle has been de-registered or even insured with company, as the case may be. However, the insurance company can also cancel the policy if you have failed to pay your premium. Also, in some cases, if no claim is made the insurance company may refund your premium (subject to administration fees). However, if a claim is made which may not be recovered from a third party, a refund by the company is not possible. As per the rules laid down by the UAE Ministry of Economy, the insurance company has to submit the following documents to cancel a policy
- Transfer of ownership of the vehicle
- Number plate certificate
- Deregistration of vehicle