Emirates: Question: I need to renew my car insurance. I’m getting significantly different quotes for similar coverage. Are there any rules or regulations governing how much premium insurers can charge? Please advise.

Answer: Under UAE law, there are certain mandatory clauses and conditions wherein a motor vehicle insurance policy needs to be covered in the country.

It includes general conditions including but not limited to

Obligations of the insurance company – such as compensation to the insurance, repair of the motor vehicle, replacement of motor vehicle etc.

Obligations of the insured – such as payment of premium, precautions to be taken, ownership, etc.

Exclusions – such as indirect losses, damage arising of overload, driver not possessing licence, if accident occurs outside the geographical territory set out in the policy

Recourses against the insured

Policy termination clauses etc.

This comes under the provisions of the Unified Motor Vehicle Insurance Policy Against Loss and Damage issued pursuant to the Regulation of Unified Motor Vehicle Insurance Policies according to Insurance Authority Board of Directors' Decision No. 25 of 2016 and Insurance Authority Board of Directors’ Decision No. (30) of 2016 Concerning issuing Regulation for Motor Vehicle Insurance Tariffs are applicable.

Furthermore, an insurance company and insured may agree on additional premiums within the scope, terms, and conditions of the policy.

This is in accordance with Clause no. 5 of Chapter One: General Obligations of UAE Unified Motor Vehicle Insurance Policy Regulation, which states, “The Company and the Insured may agree, using riders in return for an additional premium and within the scope of the terms and conditions herein, that the Company shall insure against the other damages not provided for in this Policy, in particular:

Insurance against the damages to the properties of the Insured or the Motor Vehicle Driver at the time of the accident or the properties kept with them in trust, or in their guardianship or possession under a rider to this Policy or a separate policy.

Coverage of the damages or risks which occur outside the roads.”

Therefore, motor vehicle insurance policies in the UAE need to abide by the provisions of the aforementioned regulation, and any other additional clauses and benefits depend on the insurance policy offered by the insurance company.

Decision No. 30 of 2016 on Tariff of Motor Vehicle Insurance Policy Against Loss and Damage and Third Party Liability stipulates a maximum premium of five per cent to be levied for saloon vehicles and seven per cent for four-wheel drive vehicles for 13-month policy.