What your motor insurance company in the UAE covers once you get any loss or damage in your car?

car_damageDo you know what type of covers your insurance provider can offer you once there would be any damage in your car?

1.  In the UAE the insurance companies undertake to cover the insured for loss or damage to the insured car, its accessories and additional parts whilst there on:
a) By accident or any collision happened due to accident or overturning consequent upon involuntary breakdown or consequent upon wear and tear.
b) Any damage caused by fire, external explosion, self detonation or even due to lightning and or thunderbolt.
c) By robbery or theft
d) It can be a malicious act by any third party
e) Whilst in transit within the defensive limit specified by the motor insurance policy (including the process of loading and unloading incidental to such transit) by road rail inland waterway lift or elevator relating to the said transportation.

2.  The respective insurance company of your car will pay in cash the amount of loss or damage or will renovate, re-establish or even replace the car or any part of the car including the accessories or spare parts and the liability of the company will not exceed the replacement value of the parts lost or damaged and the reasonable cost of fitting or fixing such parts, unless the insured request the company to pay him/her the amount in cash. In such case the insurance company has to respond to the insured person’s request.

After an accident if the insured person will ask for new parts instead any damaged part or if the person anytime is willing to get its value in cash, the respective motor insurance policy provider has to admit that. The insured person is liable for the depreciation percentages as mentioned in the below table:

Year Percentage
1st year
2nd year 5%
3rd year 10%
4th year 15%
5th year 20%
6th year 30%

For taxi and rental cars the insured person will be legally responsible for the depreciation percentages as mentioned below:

Year Percentage
1st year 10%
 2nd year 20%
3rd year 25%
4th year 30%
5th year 35%
6th year 40%

3. The insured person has the right to repair the damage caused by an accident covered under the motor insurance policy provided the total cost of such repair does not exceed the Authorised Repair Limit mentioned in the schedule attached to this policy and the insured should forward to the company without delay a detailed estimate of the cost along with the bill.

4. In another case where insured car sustains loss or damage and considered as Total Loss whereas the cost of repair goes beyond 50% of its value before the accident. The respective car’s insured value settled by the insured and the insurer at the time of insurance and affirmed in the schedule of this policy would be the basis of estimation for loss or damage under section One.

5. The insured value of the vehicle agreed by the insured and insurer at the time of insurance and declared in the schedule of the policy will be the basis of calculation for loss or damage under section One, after deducting depreciation/ not exceeding 20% annually of the vehicle’s value stated in the schedule attached to this policy for the first year of registration, taking into account a comparative part of the year.

As from the 2nd year of registration depreciation not exceeding 20% annually of the vehicle’s value stated in the schedule of the policy should be removed subject to the following proportion

– 5% beginning of the first month upto the end of 3rd month

– 10% from the starting of the 4th month upto the end of the 6th month

– 15% from the starting of the 7th month upto the end of the 9th month

– 20% from the beginning of the 10th month upto the expiration of the 12th month

6. If the car is immobilised by cause of loss or damage insured under this policy, the company will bear the logical cost of safety and removal to the nearest repairers and delivery to the garage within the country where the loss or damage was sustained.

Do you want to know more or want to discuss anything related to this article? Meet Alfred at InsuranceMarket for more detailed queries.

[References: Policy Handbook/Motor Perfect by AXA, Your Executive Plus Motor Insurance Policy by RSA]

[Image resource: baddeacon.com]

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