By Staff writer
New tariffs replace 1995 circular, include policies against third party liability
The UAE Insurance Authority on Sunday issued a new vehicle insurance tariff system, on which premiums are based.
The new regulation, effective from January 1 2017, supersedes an existing circular that has been in place since 1996.
The new system includes unified motor vehicle insurance policies against third party liability and against loss and damage, Emirates News Agency (WAM) reported.
The tariff will include additional premiums related to the costs of ambulance services and medical evacuation to hospitals.
Insurance companies are allowed to quote prices based on technical or actuarial reasons, but cannot levy or charge additional amounts without a resolution by the Insurance Authority.
According to the table issued, the minimum premium for a third party liability insurance policy for a four-cylinder private saloon car will be $204 (AED750), while the maximum amount will be $354 (AED1,300). The premium increases based on the engine capacity with a minimum of $354 (AED1,300) for an eight-cylinder motor vehicle are to a maximum of $572 (AED2,100).
The minimum premium for a comprehensive (full) insurance policy for a private saloon car is fixed at $354 (AED1,300). As for a four-cylinder (4x4) vehicle, the premiums for a third party liability insurance policy ranges from $272.48 (AED1,000) to $477 (AED1,750), while the minimum premium for a comprehensive insurance policy for a 4x4 vehicle is set at $545 (AED2,000).
The authority also retained the maximum premium for policies against comprehensive liability and against loss and damage for saloon vehicles at five percent, WAM said.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.