By Sarah Townsend
Insurance industry regulator to adopt ‘unified’ regulations from next year
Replacement cars will be provided to UAE drivers after an accident as part of new vehicle insurance laws to be introduced next year, the regulator told local media.
State news agency WAM said the UAE’s Insurance Authority (IA) has adopted a new “unified” regulation for vehicle insurance policies against civil liability, loss and damage.
The new regulation brings civil liability (or, third party) cover, and comprehensive loss and damage cover, into the same policy, with benefits to the estimated 3 million motorists with vehicle insurance policies in the country,
Ibrahim Obaid Al Zaabi, director-general of the Insurance Authority was quoted as telling The National that under the changes, it will be mandatory for insurance companies to provide policyholders with post-accident compensation equivalent to the cost of a replacement car for a maximum of 10 days and a value of up to AED300 per day.
Drivers will also see liability coverage extend to husbands, wives, children and parents, and a substantial rise in cover for destruction of property from AED250,000 to AED2 million, Al Zaabi was quoted as saying.
The new regulation also enables insurers and policyholders to use experts to resolve disputes, according to the newspaper.
UAE economy minister Sultan bin Saeed Al Mansouri, who is also chairman of the IA, said in a statement: “Vehicle insurance is [at present] differentiated according to the type of insurance, through separate policies, the first of which relates to civil liability (third party)…the second of which is related to supplementary or comprehensive loss and damage and is optional for those who want to cover their vehicle.
“This [new, unified regulation] replaces what was called comprehensive insurance in a single insurance policy, including the two types of vehicle insurance.
“It contains numerous benefits for policyholders and the domestic market, and the same was not present in the previous two policies.”
Al Mansouri added: “The new regulation supports the legislative base of the UAE’s insurance sector…and increases the sector’s competitiveness at regional and international levels.”