Motor Insurance Terms Explained – Series 2

dubai-carsI hope you have found series 1 fairly helpful to provide you with a good grounding in the terms used in your motor insurance policy. As you would have imagined, the policies are quite vast and definitely have wordings, which need to be understood before any purchase. If you were to ever buy your insurance directly from the insurance company, you would usually be expected to know these terms. If you don’t, they would probably use another set of jargons to explain the parent key term. Perhaps that is why one should choose to either be knowledgeable enough or simply use the services of a broking firm and allow them to answer as many of your questions as possible.

Having said that, I am here to help you get to that stage by merely explaining these keywords in plain English words! So here it continues, hope you enjoy it.

Agency Repairs:

If your car is fairly new and have just been bought then you surely want high quality repairs to be done. Ensuring that you have agency repairs included in your policy means that you car would be repaired at the car manufacturer’s authorised repair workshops.  This cover normally comes with extra costs for the third year renewals in which case the insurance companies’ selected repair workshops can offer quality repairs as well. Some insurance companies would also exempt the insured from paying the excess if the insured, despite having the option of agency repairs, chooses to get his car repaired from insurance company’s selected workshop.

Hire Car Benefit:

If your car is stolen or damaged then the insurance company will offer you a replacement car for a certain time period whilst you purchase another car or get it repaired. Additionally, if the insurance company decides that the car is a total loss as a result of an accident then the insurer will be able to provide a hire car for a certain time period till the claim is settled. Some insurance companies also offer a hire car cash benefit if you wish not to take the replacement car and be given a specific amount of money per day regardless of what you do with it in the end. This again is an optional cover and comes with a little extra cost if you chose to include it in your policy.

GCC and Oman Cover:

Your cover can be extended to provide compensation for any loss or damage to your car if driving in/to Oman, Bahrain, Saudi Arabia, Qatar and Kuwait. Additionally, to cover for the third party liability in one of these territories, you will be required to purchase this separately at the border. However, there will always be two condition or restrictions attached to this aspect of the cover; one, the total duration (number of days) allowed per trip and two, the total number of days allowed in a year. These restrictions vary depending on the insurance companies but will be applicable regardless.

Windscreen damage:

If your car’s windscreen or windows break down then the insurance company normally covers for the replacement cost. Additionally, any costs arising from scratches or damages caused by the broken class will also be covered. Most insurance companies will not reduce your ‘no claims discount’ if the windscreen damage is a standalone claim.

Personal belongings:

The insurance company will compensate for any losses or damages to the personal belongings resulting from fire, theft or accident, which were kept in the insured vehicle at the time of the damage. The insured will not only have to provide a police report to confirm the loss but also a proof of purchase to substantiate the ownership.Note that the insurance companies will always account for the wear and tear of your belongings before settling the claim. However, like everything else, this cover also has its own caveats, as follows:

– Personal belongings stolen from a convertible car/open top will usually not be covered, unless they were kept in locked boot.

– Money, jewellery, lottery tickets, stamps and documents will not be covered for.

– Any theft not resulting from forced or violent entry will not be covered. There needs to be a visible evidence of forced entry to prove loss or damage to the personal belongings.

Well, that’s about it for now. I hope it’s not much information for you to digest! Some of the terms may even be self-explanatory for you but at least they remind you to check for these aspects when going through your policy schedule. Do watch this space for more ‘technical’ terms very soon!

Ciao from Alfred for now!

More articles on Motor Insurance Terms will be coming soon!

[Image source: dubai-information-site.com]

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Motor Insurance Terms Explained – Series 1

motor_DubaiInsurance can get as technical as you would like it to be. From various types of insurance, several levels of coverage to innumerable jargons in the policies, it can just go on and on and on. Most of the time you will not even have to go through your insurance policy schedule if you have placed your insurance with a well known and trusted company.

Motor insurance, however, is one thing you should be well aware of. It is not only mandatory to take out insurance for your car in many countries, at least that I have come across, but also seems ethical to at least take out third party liability insurance where it is not.

It is certainly essential to understand the jargon and key terms in your policy in order to be able to understand what it means and buy what is right for you. Despite placing your trust in the insurance companies, you must review what you purchase and raise questions if anything at all is unclear. It is imperative that you are a well informed customer regardless of what you purchase.

Speaking of motor insurance, your policy may entail several terms that occasionally do not even sound like English! I don’t plan to bombard you with all these terms in one shot and so I have planned to bring these out slowly and gradually to you in a way of what I call, ‘Motor Insurance Terms Explained Series’. In this series, I explain, as below, some of the basic terms that you will come across in your motor insurance policy:

1. Third party liabilities:

a. Third party property liability: This will provide you with the cover to compensate for any accidental damage to the third-party property for which you are responsible for. The insurance company will pay the amount of the claim up to the limit specified in your policy schedule.

b. Blood money: Similarly, the insurance company will compensate for the death or bodily injury of a third party person arising due to an accident caused by the driver/insured. In an unfortunate scenario where the accident results in a death, the form of compensation paid to the family of the third party is known as blood money.

2.  Premium:

This is what you pay for your insurance. Just a technical term used for the price of the purchased product. The premium is calculated by the insurance company whilst taking into consideration various factors that may affect the frequency and severity of the insured event taking place. These factors vary from country to country but are normally the driver’s age, driver profile, loss history, car model, etc.

3.  Excess:

This is an amount of money that the insured has to pay in the event of a claim resulting from an accident at your fault or in a hit and run case. For example, if your policy mentions an excess of 500 AED, then you would have to pay this amount at each claim incident. The amount of claim over and above the excess will be paid by the insurance company.

If at the time of the accident, the driver is found to be less than 25 years of age of with less than 12 months of UAE license, other than a convertible license, then the insured/driver is legally responsible for paying 10% of the claim in addition to the amount of excess specified in the policy.

For now that is it but there is a lot more to come so keep an eye this space!

[Image Source: internetautoguide.com]

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How can I convert my license to a UAE license? Is my home country license convertible?

dubai_carIf you have just moved to Dubai and are lucky enough to already have a car driving license and even luckier to have obtained a license from one of the selected few countries mentioned later in this post, you have just saved yourself a whole lot of effort, time and money!

Dubai is an interesting place with interesting rules. It is never a simple yes or no answer to a posed question, ‘Are you completely sure you are ready enough to pass your driving test in one round, or two rounds, or three rounds?’ The answer to this highly depends on various factors, usually immeasurable, such as luck, examiner’s mood, your confidence, etc. Be wary of the fact that learning driving and obtaining a license in Dubai is getting trickier and expensive day by day. I have known friends who have spent thousands of Dirhams just to get their driving permits even though they have had years and years of prior car driving experience in their respective countries. Not all licenses are convertible of course! Some are and some are not. Convertible license is definitely a global phenomenon and Dubai has its own list of countries and rules on this subject. If you are a resident of, AND have a license from one of the following countries, you are right away exempted from the rigorous process of taking a set number of driving lessons or appearing for various tests – it doesn’t even matter if you had never driven on the other side of the vehicle whereas you will be now! The list of such countries allowing for this exemption is as below:

Australia

Austria

Bahrain

Belgium

Canada

Denmark

Finland

France

Germany

Greece

Ireland

Italy

Japan

South Korea

Kuwait

Netherlands

New Zealand

Norway

Oman

Poland

Portugal

Qatar

Romania

Saudi Arabia

South Africa

Spain

Sweden

Switzerland

Turkey

United Kingdom

United States

All you have to do is submit a few documents and pay a small amount of fees, and you have got your permit sorted out!

Note that however if you own a permanent car driving license from one of the aforementioned countries but are not a resident, or in other words do not have that country’s passport, unfortunately your license is NOT convertible. It might have taken you by surprise, but it is true that you would still have to give the final road test despite no clear evidence of you, as a non-resident, being a better or worse driver than a resident holding the same driving license as yours. On a positive note, you will however be exempt from taking any lessons or parking test or a signal test. All you have to do is go for a few theory lessons, give you theory test and go directly for a final road test if you wish. You definitely do see at least some of the benefits of holding an international license, albeit non-convertible.

Whatever the rules are, it is nonetheless always beneficial to take a few lessons if you are driving in a new environment with different roads, rules and regulations.

The story on the other hand does not end here. Whether you have obtained a license through convertible or non-convertible means, you cannot in any way whatsoever, as exciting as it may sound, start driving right away. Insurance is a crucial aspect that needs to be taken care of before you get on the road. Third party liability insurance is mandatory whereby you take out cover for any damages or injuries to a third party to which you are liable. Comprehensive car insurance, on the other hand, as the name suggests, is fairly comprehensive and in a nutshell, covers for any loss or damage to you or your car as a result of an accident. Again, if you are lucky enough to have the privilege of a convertible license, you can also occasionally avail insurance related advantages. For more information on that, feel free to base touch with me and I’ll unveil what your personal shoppers have in store for you!

Alfred is the insurance genius behind InsuranceMarket.ae and its wonderful insurance personal shopper services. With us you don’t only find the best insurance deals in the UAE, you are also protected by a sound knowledge-based infrastructure and over seventeen years worth of experience in the insurance industry.

[Image source: dubaimetro.eu]

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How can I estimate the cost of my car insurance in the UAE?

protected carWhen buying your car in the UAE, it is of course important to be able to budget  for car insurance, as this would be costing you a few percentage points of the value of the car itself. While every single driver profile and their corresponding vehicle would cost differently at any point in time, especially since the world of motor insurance underwriting is constantly developing, (and this is why we don’t sell policies online and make sure that your personal shopper structures the best solution for you) just to give you a basic idea here is a general formula that you can follow:

Firstly, if the value of your car is less than AED 100,000 take the base starting rate of 3.25%, if it’s more than AED 100,000 and less than AED 300,000 take the base starting rate of 3% and if it’s more than AED 300,000 and less than a million, take the base starting rate of 2.75%.

Now, apply the following discounts and/or surcharges:

        • If, you’re between the ages of 23 and 25 – add 25%
        • If you’re between the ages of 25 and 30 – add 15%
        • If your UAE driver’s license is less than a year old (and you don’t have a convertible license from your home country) – add 25%
        • If you’re more than 30 and less than 60 – deduct 10%
        • If your car is a 4-wheel-drive or SUV – deduct 10%
        • If your car is a coupe or sports car – add 20%
        • If you car is brand new – deduct 10%
        • If your car is not registered in Dubai (but in Abu Dhabi or any of the Northern Emirates) add 5%
        • If your car is more than three years old (between 3 and 5 years old) and you wish to have agency repair cover, add 30%
        • Add AED 120 if you wish to cover personal accident benefit for the driver and add AED 30 per passenger
        • Add AED 150 for rent-a-car benefit i.e. to receive a courtesy car while your car is being repaired in the event of an accident
        • If you are claims free and you can prove it deduct:
              • 5% for a 1 year no claims certificate
              • 10% for a 2 year no claims certificate
              • 15% for a 3 year no claims certificate
              • 20% for a 4 year no claims certificate
              • 25% for a 5+ year no claims certificate

Now, obviously, the above is just a rough indicator of your car insurance rating at the time of writing this article – however, different insurance companies have different areas of strength and similarly your rating can be affected significantly by the coverage you are given as well as the quality of insurer.

Visit insurancemarket.ae to find the best deals on your car insurance in the UAE! We will ensure that the right underwriter receives the right risk so that the customer enjoys a good rate and the insurer wins business that is within their comfort zone and target market. Our scale economies from placing business in bulk helps us add value to our clients in terms of better prices and better service.

[Image Source: automotiveblog.co.uk]

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What is Group Business Travel Insurance?

bustravpanama

UAE, one of the largest emerging economies, has a population of approximately 9 million of which 80% are the expatriates. Majority of these expatriates form the UAE’s working population and greatly contribute to the economy’s travel industry. UAE is certainly the commercial hub of the GCC and has growing tourism, trade, logistics, banking, construction and manufacturing sectors. Hospitality industry in itself caters to 12 million visitors per year. Likewise, insurance industry is also growing but still has far lower penetration compared to the US or the UK. The insurance industry has plenty of room for growth and travel insurance is certainly one of the growing areas.

Speaking from a business perspective, if you, as an employer, require your company’s employees to travel frequently for business purposes, they automatically assume that you have a duty of care towards them. If the employee is left stranded because he missed the flight due to a delayed meeting or even a natural peril, he will expect you to pay for the extra accommodation and travel costs that come with it.  Equally, if your employees are injured whilst they are travelling for business reasons, they expect you to financially support them whether by paying for their treatment costs, arranging for the transport back to their home country, or even supporting their family whilst they recover.

Your employees are your most valuable assets and you would surely want to show your commitment to keep them contented. You can easily protect their rights and equally fulfill your responsibility by simply taking out a Group Business Travel Insurance. The following four categories summarise the coverage that a business travel insurance would normally offer your business:

Emergency Medical Expenses Cover

i. Dental accident/Emergency dental treatment.

ii. Emergency medical treatment required due to the insured falling ill or having an accident during the journey.

iii. Emergency evacuation to the nearest hospital e.g. air ambulance.

iv. Compassionate visit, i.e. a family member flying in to accompany the insured in the hospital.

v. Child’s tuition fee if the parent/insured is out of work and unable to support due to an accident/illness.

Travel Inconvenience:

i. Flight delays due to circumstances not under the insured’s control.

ii. Loss of luggage or baggage delays.

iii. Cancellation of the travel plans, tickets, hotel bookings, etc due to an accident or illness of the insured.

iv. Hijack, Ransom and Kidnap.

Personal Accident Cover:

i. Lump sum payment if there is an accidental death or permanent disablement of the employee.

ii. Repatriation expenses.

iii. Partial disablement.

Travel Assistance: This assistance acts like your personal concierge service, providing you with all sorts of assistance that you might require whilst traveling. This could be anything from locating the closest ATM for your card, ensuring that you are treated at a reliable hospital with a specialist doctor, arranging your transport to rebooking your travel and much more.

You would normally be given a choice to take out an annual policy covering your employees every time they travel during the year or otherwise purchase a set number of days and keep deducting the days your employees travel, each time requiring you to issue a new policy for them.

With increasing globalization and competition, many employers now aim to provide a comprehensive list of benefits to its employees. Offering them travel insurance is certainly an add-on for them especially when they are required to travel frequently for business reasons. Normally, this insurance can be extended and be used for the number of days your employees go for a leisure trip as well.

As several countries recover from the recession, many companies are now gradually experiencing growth in their businesses and equally the need for taking up various projects worldwide. Often this requires their employees to travel depending on their level of expertise. With increasing demand for corporate travel, we also see a soaring need for business travel insurance. It is crucial that your business keeps up with the market trend, not just to increase and sustain the company’s growth and profitability, but also to help your company retain the key talent and recruit the best.

Whether you’re looking to take up an individual travel insurance policy or looking into buying a cover for the business travelers of your company, please be in touch with us on afia.ae and we would be happy to give you various options, implement the cover and thereafter also manage your claims for you on a fast-track basis. 

[Image source: businesstravellogue.com]

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