The New Car Insurance Policy In UAE 2021

Policy changes

The UAE Insurance Authority has made mandatory implementation of changes to the insurance policy and the new rate system, effective January 1, 2017. Based on this rate, there is an increase in the premium paid to the insurance companies. But that bonus is not the only thing that is changing. Other policies are being approved and working properly by increasing the premium.

Impact of the new policy:

• Free Vehicle Replacement with No Failure: Under the above system, if your vehicle were to have an accident, you would be provided a replacement vehicle if the policy covered it, regardless of the party at fault. But under the new rule, if you are involved in an accident and you are not at fault, you will be provided with a replacement or compensation equivalent to the replacement by the other party's insurance company. The maximum exchange period is 10 days and the maximum compensation is AED 300 per day.
• Accident coverage extended to family members: According to the previous guidelines, in the event of an accident, only the insurance company was covered and not the family members involved in it, unless there was an addition to cover family members in the policy. But under the new rule, immediate family members like parents, children, and spouse / spouse are covered.
• Increased Third Party Damage: Under the new set of rules, third party damage coverage has been increased to AED 2 million from AED 250,000 previously.
• A subtle rule to declare the vehicle as a total loss: According to the new rule, if the entire body of the vehicle is destroyed, the insurance company will not attempt to repair the vehicle and will instead provide a new replacement vehicle or the amount of the vehicle as by market value.
• Separate quotes: Under the above insurance, the comprehensive insurance policy includes Laforie and Special Damages. But now the insurance company can request and get quotes for TPL and its damage coverage and can also buy from different providers.
• Cost: Under the new insurance policy guidelines, insurance companies cannot claim additional fees like ambulance fees, etc.
  

Ways to overcome the increased insurance premium:

• Compare before choosing: this is quite simple. It is always advisable to compare the cost of different car insurance in the UAE, before deciding on one.
•  Cheaper car, cheaper insurance: no bills. Not all cars are made equal, so the premium varies from car to car. Recommendation, think more about the price of the car because the insurance depends on it.
• Avoid Additional Packages: In the case of both your insurance and your car, avoid any additional packages if it is not necessary for you and you do not mind paying an additional premium for it.
• Discount on No Claims History - Last but not least, we all know that if you haven't been in an accident or have not claimed insurance for a year, you will get a discount on your premium. Try to take advantage of this as it will be beneficial to you both ways.