How the New Car Insurance Rules in Dubai Can Impact you?

Sometimes, we can’t estimate beforehand the after-effects of the change in policy. Now, when it comes to the revised car insurance rules in Dubai, there are so much to talk about. Be it the number of benefits, the level of coverage or the mistakes that could every policyholder ought to avoid. Here in this article, we will cover all the required points that will help you take the right step whether you are looking for the best insurance in Dubai or updates about the updated car insurance rules of the UAE.

Experts say that the new UAE car insurance rules contribute to an increase in the price. On the bright side, it provides wider insurance coverage and benefits. Let’s delve deeper into understanding how these changes in the rule may impact UAE drivers in the long run.

Get free Replacement Car for not being at Fault

Earlier in the specified guidelines, the insured would only get a replacement car if it was included in their policy. Whether or not he/she caused the accident, they’ll get a car in case of an unforeseen event. However, as per the new insurance rules, if it’s not policyholder’s fault, they will be provided with a replacement car right away or equivalent compensation by the opposite party’s insurance provider. With that in mind, insurance buyers should compare car Insurance in Dubai to find the best option available in the market.

Extension of Liability Coverage for Family Members

As a matter of fact, family members were not a beneficiary under the coverage protection plan during an incident. They were only eligible for the passenger accident benefit cover, which was an add-on benefit of insurance policies and came at an extra cost. The revised rule states that the insurer would extend coverage to the close family members such as parents, children, husband, or wife.

Property Damage Cover has increased

The revised rules come as a great relief to the third-party affected during the occurrence of any untoward event. The maximum insured amount has been increased in case of any damage caused to their property or any physical injury sustained by the third-party. That being said, policyholders looking for the best insurance in Dubai should make an informed decision keeping the revised rules in mind.

Rules Regarding the Declaration of a Car as a Total Loss

There is a change in the rule when it comes to the total loss of the damaged vehicle. If there’s no feasibility of replacing the damaged car parts, the insurer must consider the car as a total loss. The car owner is entitled to get a new car or a sum of money equalling the market value of the car. Usually, it’s specified in the policy document.

No Obscurity on Policy Breakdown

It’s generally the case that customers fail to clearly distinguish between the comprehensive insurance and third-party insurance. As they comparecar insurance in Dubai, there is a lack of clarity on the quotation part as to what is the difference between the two and the level of coverage offered by each type. A comprehensive insurance policy has a provision for a plethora of covers that include third-party liability insurance with ‘’own damage cover,’’ which shields them financially against damages to their own car. The new rule allows the policyholder to quote separately for both OD and TPL cover.

No Claim Discount

The policyholder can get a discount on the policy premium for the next term if they haven’t claimed insurance in the previous year. NCD helps to reduce the premium offered by the insurer at the time of renewal of the car insurance. The NCD increases year-by-year and can be transferred if the policyholder plans to change the insurance company. Noteworthy here is that if thepolicyholder is at fault, he can lose out on the NCD either in parts or in full, whereas being at no-fault doesn’t hamper these discounts.

Now, comes the second part which explains why the insurer would nullify the policy mid-tenure. Here are some possibilities worth considering:

Being Dishonest with the Insurer

The car insurance provider can terminate the policy if it finds out any lie about a driver, be it any fabricated claim or disregarding the terms and conditions of the policy. The policyholder needs to pay special attention to the policy terms and conditions before signing the policy document.

Lack of Transparency Regarding Car Modifications

In the event of policyholder’s failure to communicate with the insurer about any modifications in the car, safety, and valuation, the policy may be subject to termination. That’s why it’s advised that the policyholders must keep the insurer informed beforehand regarding car modifications.

No Consideration for Traffic Laws

Disregarding traffic regulations may land the policyholder in trouble. Committing unlawful acts like drunk driving and carrying a suspended driving license while driving could give the insurer a reason to cancel the policy.

The Bottom Line

The policyholder should refrain from law-breaking and anti-fraud activities to keep their insurance contract intact. Knowing these updates will help the policyholder to make better insurance decisions at the time of buying/ renewing policy or filing insurance claims.