Please register to access this content.
To continue viewing the content you love, please sign in or create a new account
Dismiss
This content is for our paying subscribers only

Business Banking & Insurance

UAE's Al Fujairah National Insurance first in Middle East to offer flood cover for car owners

Al Fujairah National Insurance extends water logging cover on third-party policies



Car owners with third-party insurance policies suffered the most from the April rains. In many instances, their vehicles had to be totally written off.
Image Credit: Shutterstock

Dubai: Worried about water logging damaging your vehicle?

The UAE based Al Fujairah National Insurance Co. has launched ‘FloodGuard’, a policy designed to offer cover on damages brought on from floods, water inundation, storms or tempest. This is designed specifically for those vehicle owners in the UAE having third-party motor insurance. The annual premium cost for the protection is set at Dh300-Dh350.

Get exclusive content with Gulf News WhatsApp channel

“Comprehensive insurance already provides flood protection risk cover for car owners in the UAE,” said Antoine Najib Maalouli, CEO at Al Fujairah National Insurance Co. “But there is this vast pool of third-party motor insurance holders who would look to take the FloodGuard cover.”

FloodGuard policyholders can select coverage limits of Dh25,000 or Dh50,000 for a 12-month term.

Advertisement

Many insurance companies were significantly affected and so were the reinsurers. It explains why premiums have been rising all round.

- Antoine Najib Maalouli of Al Fujairah National Insurance Co.

The new product was specifically launched in response to the rain and subsequent flooding in the UAE mid-April. Water logging at the time caught car owners off guard, with many having to resort to abandoning their cars because of the deluge. Repairs to those have cost owners and insurance companies significant amounts. A sizeable number of affected vehicles had to be written off.

“It was third-party motor vehicle owners who suffered the most from the April rains,” said Maalouli. “We started on creating this flood risk cover targeted at these car owners almost immediately. I would say we are the first insurer in the Middle East to come up with such a risk cover.”

After the rains, motor insurance premiums in the UAE have risen significantly, with some major spikes seen on EVs. It is part of a scenario where premiums on all the main insurance categories have risen, particularly in those categories that had heavy claims from the April flooding.

“Based on what our reinsurance partners are saying, the scale of the losses sustained by insurers is close to $3 billion,” said Maalouli. “Many insurance companies were significantly affected and so were the reinsurers. It explains why premiums have been rising all round.”

Advertisement