Abu Dhabi: The Insurance Authority (IA) has issued a schedule of premiums for vehicle insurance based on the unified system for motor insurance policies issued in September.
The schedule includes premiums for third party insurance, and premiums for the policy to insure vehicles against loss or damage and for third party vehicle insurance policy.
Insurance companies should abide by the schedule of premiums for all car insurance policies as of January 1, 2017.
The schedule includes the minimum and maximum premiums for third party liability insurance policy. Insurance companies have the freedom to compete within these prices.
The system determined the maximum premiums for vehicle insurance against loss or damage only, allowing insurance companies to specify their premiums, provided that they do not exceed the maximum. The new rule set the lowest acceptable premium.
The schedule includes all premiums that cover all insurance cases mentioned in the two forms of documents included in the unified system for motor insurance policies. The first is a third party vehicle insurance policy and the second is a policy for insuring vehicle against loss or damage. It also includes all allowances, administrative expenses and commissions.
The premiums are inclusive of the additional instalment levied for ambulance and medical services, including evacuation and transfer to hospitals.
Insurance agencies or brokers are not authorised to impose or levy any additional amounts or allowance except by a resolution issued by the insurance authority.
The period for insurance is 13 months. In case of an agreement reached between the insurance company and the insured regarding additional coverage that is not mentioned in the policy issued under resolution No 25 of 2016, the additional premium agreed upon should be levied. The insurance company should mention this coverage in clear language and in a different colour or in an additional appendix.
The rule obliges insurance companies to clearly and accurately write down the insurance premium levied from the insured in the insurance policy and the vehicle insurance certificate.
Insurance companies should not exceed the maximum limit of premiums or go below the minimum limit
Regarding the insuring policy against loss or damage, the authority maintained the current maximum limit of 5 per cent on sedan cars, but increased the minimum limit.
The authority issued the unified regulation for vehicle insurance policies against civil liability and against loss and damage in September.
It aims to achieve the highest standards of transparency in line with the demands of the local market and national economy. The system also aims to protect the rights of holders of insurance polices and shareholders of insurance companies as well as the rights of insurance companies.
The new system increases insurance coverage related to any claim arising from an accident that causes physical damage from Dh250,000 to Dh2 million.
A new provision regarding compensation stipulates that motorists involved in accidents have the right to obtain a daily amount of Dh300 for 10 days to rent a vehicle.
In case of the death of one member of the insured family, or the driver of a rented vehicle, or public vehicle, or a driving-learning vehicle, the insurance company is liable to pay Dh200,000 for each dead person.
In case of injury, the liability of the insurance company will be paid according to the extent of the disability.
The insurance company is obliged to repair the damaged vehicle and pay the market value of the vehicle if the vehicle repair cost exceeds 50 per cent of the car’s market value, provided the insurance company’s liability does not exceed Dh2 million.
Regarding amendments to the unified policy for insurance against loss and damage, the new policy includes an additional deductible amount decided by the insurance company, which is a maximum of 10 per cent of the compensation value if the driver is under 25 years of age. It is a maximum of 15 per cent of the compensation value for public vehicles and taxis, and a maximum of 20 per cent for sports and modified vehicles.
