Safeguarding Your Ride

As weather patterns shift, car owners urged to reassess insurance amid rising flood risks and financial pressures

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Top Stories

Car protection and safety assurance concept, car insurance web banner design. small yellow automobile hatchback under the yellow umbrella isolated on white background. cartoon style. 3d rendering
Car protection and safety assurance concept, car insurance web banner design. small yellow automobile hatchback under the yellow umbrella isolated on white background. cartoon style. 3d rendering

Published: Fri 3 May 2024, 11:59 AM

RECENT weather patterns in the UAE have sparked concerns among car owners as insurers grapple with financial challenges. The critical gap in many car insurance policies has left drivers exposed to unforeseen risks and significant financial losses.

The UAE's unpredictable climate, characterised by increasing frequency of rains and localised floods, has underscored the vulnerability of drivers to water damage. In light of these events, there is a pressing need for car owners to reassess their insurance coverage to ensure adequate protection.


While insurers work to assess the full extent of the situation, drivers are urged to take proactive measures to safeguard themselves against potential losses. Comprehensive car insurance emerges as a crucial safeguard, offering protection against various risks, including water damage.

Unlike third-party liability insurance, which may appear cost-effective, comprehensive coverage provides comprehensive protection against a range of threats. This includes damage caused by adverse weather conditions such as heavy rains and floods, which are becoming increasingly common in the region.


Neeraj Gupta, CEO, Policybazaar.ae
Neeraj Gupta, CEO, Policybazaar.ae

“As a responsible insurance marketplace, we urge all UAE residents to prioritise their safety and financial security by investing in the right and comprehensive car insurance. Don't wait until an event such as this to happen - we request car owners to ensure they are adequately protected against unforeseen challenges,” according to Neeraj Gupta, CEO, Policybazaar.ae.

Gupta added that comprehensive car insurance acts as a vital financial shield against a wide range of perils, including water damage caused by heavy rain, floods, or burst water pipes. In today's climate, where extreme weather events are becoming increasingly common, comprehensive coverage is not just a luxury but a necessity.

MOTOR INSURANCE VULNERABILITIES

Dubai, UAE - 18-April-2024: cars submerged and stuck during a strong storm. Heavy flood. Heavy rain.
Dubai, UAE - 18-April-2024: cars submerged and stuck during a strong storm. Heavy flood. Heavy rain.

The broader Gulf Cooperation Council (GCC) area has seen a shift in weather patterns, with a notable increase in incidents of hailstorms and heavy rains leading to frequent flash floods. These changes have prompted insurers to implement measures aimed at minimising potential losses, such as issuing alerts during heavy rainfall and promoting protective measures to reduce vehicle damage from hail.

AM Best's analysis indicates that the motor insurance sector in the UAE faces heightened susceptibility to losses stemming from natural disasters, with a considerable portion of the risks retained within the local market.

Recent floods have significantly impacted motor insurance portfolios, leading to extensive vehicle damage caused by water exposure. The standard motor policies administered under the UAE's Ministry of Economy do not inherently include coverage for natural disasters, allowing insurers the discretion to incorporate such protection.

Although comprehensive policies inclusive of flood coverage are accessible, they constitute a smaller sector of the market compared to the more budget-friendly third-party liability policies.

The anticipated surge in motor insurance premiums reflects insurers' efforts to adapt to evolving risks and financial pressures. As insurers navigate these challenges, drivers are encouraged to prioritize comprehensive coverage to mitigate potential financial hardships in the event of unforeseen circumstances.

Recent weather events in the UAE highlight the importance of robust insurance coverage for car owners. With the frequency of adverse weather conditions on the rise, ensuring adequate protection against water damage is paramount. By reassessing their insurance policies and opting for comprehensive coverage, drivers can better safeguard themselves against financial vulnerabilities amidst evolving risks.

Recent events underscore vulnerabilities, emphasizing the importance of comprehensive protection against water damage. With insurers adapting to evolving risks, prioritising robust coverage becomes essential to safeguard against financial losses in unforeseen circumstances. By taking proactive measures and opting for comprehensive car insurance, drivers can better protect themselves amidst the changing climate and increasing frequency of adverse weather conditions. It's a vital step towards ensuring financial security and peace of mind on the road.

— anam@khaleejtimes.com



More news from Business Technology Review