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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