Does UAE car insurance cover flood damage? Minister clarifies

Ismail Sebugwaawo /Abu Dhabi
Filed on January 21, 2020
uae, insurance laws in uae, uae vehicle insurance rules

(KT file)

This is part of the unified policy that insures the vehicle against risks of loss and mass damage.

Motorists whose vehicles were damaged in floods earlier this month will have to be compensated by their insurance firms, a minister clarified at a Federal National Council (FNC) meeting on Tuesday.

Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the Federal Insurance Authority, assured motorists that insurance companies are obliged to cover any damage suffered by vehicles as a result of natural disasters, such as thunderbolts and floods. This is part of the unified policy that insures the vehicle against risks of loss and mass damage.
Al Mansoori made the remarks in a written letter read to FNC members in response to a question that had been raised by Hamad Ahmed Al Rahoumi, the first deputy speaker.

Some motorists whose vehicles were damaged in flooded roads were confused and uncertain on whether insurance firms will compensate them for the damages as many didn't know about the law.

"The unified insurance policy doesn't exclude damages resulting from natural disasters, either directly or indirectly," the minister said, stressing that the insurance authority has been keen on organising campaigns to raise car owners' awareness of their benefits, rights and the duties of insurers.

"It is important that the Federal Insurance Authority conduct awareness campaigns to inform customers of their insurance rights," Al Rahoumi told the house.

The minister appealed to all parties, including the car owners and insurance firms, to carefully read the terms of the standard insurance policy and make sure they understand its details.

Ismail Sebugwaawo

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