Post by: Chief News Editor | Published: September 28, 2016 , 11:18 pm | Category: WORLD
New policy includes additional deductible amount as decided by insurance companies
Abu Dhabi: The Insurance Authority has approved a unified system for motor insurance policies, it was announced on Wednesday.
The new system increases insurance coverage related to any claim arising from an accident that causes damage to property from Dh250,000 to Dh2 million.
The system was announced on Wednesday by Sultan Bin Saeed Al Mansouri. Minister of Economy, and Chairman of the Insurance Authority, in a statement issued by WAM.
“Approving the new system represents a paradigm shift in the development of the organisational foundations and technical regulations of the UAE’s insurance market and vehicle insurance sector,” Al Mansouri said.
The new rule includes two documents. The first is a third party vehicle insurance policy and the second is a policy for insuring vehicle against loss or write-off.
The current system has been in effect for the past 27 years during which two models of insurance policies were issued since 1987.
According to the new system, vehicle insurance has been categorised as per the insurance type through two separate documents.
The first is compulsory and related to third party liability in compliance with the traffic laws.
The second is related to loss or written-off vehicles. It is an optional policy for motorists who want to insure their vehicle instead of getting comprehensive insurance in one policy document covering the two types of insurance.
The new system aims to achieve the highest standards of transparency in line with the demands of the local market and national economy, the authority said.
A new provision regarding compensation stipulates that motorists involved in accidents have the right to obtain a daily amount of Dh300 for 10 days to rent a vehicle.
Regarding amendments to the unified policy for insurance against loss and written off vehicles, the new policy includes additional deductible amount decided by the insurance company, which is a maximum of 10 per cent of the compensation value if the driver is under 25 years of age, a maximum of 15 per cent of the compensation value for public vehicles and taxis, and a maximum of 20 per cent for sports and modified vehicles.
In case of the death of one member of the insured family, or the driver of a rented vehicle, or public vehicle, or a driving-learning vehicle, the insurance company is liable to pay Dh200,000 for each dead person.
In case of injury, the liability of the insurance company will be paid according to the extent of the disability.
The insurance company is obliged to repair the damaged vehicle and pay the market value of the vehicle if the vehicle repair cost exceeds 50 per cent of the car’s market value, provided the insurance company’s liability does not exceed Dh2 million.
Husbands, wives, children and parents will be included in the insurance coverage. A passenger is defined as a person who was inside the vehicle or getting in or off the vehicle. The maximum limit of insurance company liability to any claim arising from one accident is the value determined by a court.
NEWS COLLECTED FROM GULF NEWS.