Motor insurance: Rain damage claim rejected in UAE? Here’s why

Dubai: While heavy rain and hail in the UAE may not be in the immediate horizon, being prepared on how to safeguard your car from these potential threats is crucial.

Gulf News spoke to two UAE-based experts in the motor insurance industry to shed light on the key reasons claims get rejected and whether comprehensive insurance is worth the additional investment.

Expert tips for minimising claim rejections

The first step you take when your car is damaged by rain can affect your chances of insurance coverage and a smooth assessment process.

Madiha Asif, business analyst and personal lines manager at Nexus Insurance Brokers, advises motorists to follow these key steps to remember when you are stuck in a flooded area.

Avoid restarting your car – If your car’s engine stalls, resist the urge to restart your vehicle immediately. This could exacerbate any damage, particularly to the engine. Wait until a professional assessment can be made.

Remove water from your car, if possible - open doors and windows to increase airflow and aid in drying out your vehicle. This action can help mitigate further water damage to the interiors of the car.

Document the damage - take clear photos and videos of both the interior and exterior damage to your vehicle. This thorough documentation will play a crucial role in accurately assessing and processing your insurance claim.

Report the incident to the police - notify the authorities about the rain-related damage.

Reasons why your insurance claim might be rejected

Insurance claims for rain damage can face rejection under certain circumstances. By understanding why, you can ensure a smooth claims process in the event of unexpected weather damage, Asif explained.

“While car insurance policies in Dubai, Abu Dhabi, and other emirates often include coverage from natural perils including storm and flooding due to heavy rain, the specifics of coverage can vary depending on your insurance provider and the terms of your policy,” she said.

Asif clarified that coverage for rain damage varies depending on your policy and provider. Here are common reasons for claim denials:

1. Parking or driving in waterlogged areas – if your vehicle sustains damage due to waterlogging during heavy rains and it turns out that you drove into the waterlogged areas or left your car parked there, your claim might be denied.

“The insured should try to avoid damages by following the authority’s warnings to not take the car out unless it’s absolutely necessary or an emergency. In such cases, most policies would look at paying for the damages,” she said.

What happens if my basement gets flooded?

According to Asif, in cases where the basement of a building gets flooded, the damage is claimable under insurance, as the basement parking is considered as a designated parking place. “This is why we emphasise that it's essential to review the insurance policy and understand the terms and conditions to know what is covered in such situations and abide by the local authority’s warnings,” she added.

2. Engine damage from attempting to start in waterlogged areas – if you are in an area which is waterlogged or partially submerged and attempt to start the engine, resulting in engine damage, your insurance claim may be rejected.

3. Intentionally driving on flooded roads – deliberately driving on flooded roads during rain can also lead to claim rejection by the insurance company.

“It's crucial to review the terms and conditions of your individual car insurance policy to ensure coverage for floods and natural calamities fully. Some policies may exclude these conditions altogether, potentially resulting in denied claims, while a few other will cover damages but only if the car was damaged due to rain whilst parked,” she added.

“It's crucial to review the terms and conditions of your individual car insurance policy to ensure coverage for floods and natural calamities fully. Some policies may exclude these conditions altogether, potentially resulting in denied claims, while a few other will cover damages but only if the car was damaged due to rain whilst parked

- Madiha Asif, business analyst and personal lines manager at Nexus Insurance Brokers

Comprehensive coverage: Worth the investment?

This is why you should take time out to read the details of the terms and conditions of your policy. According to Toshita Chauhan, business head for health and motor insurance at Policy Bazaar UAE, comprehensive insurance offers the most extensive coverage, but even so, customers should be aware of the fine print.

“Comprehensive car insurance in the UAE typically covers rain and flood damage. This type of insurance provides extensive coverage for a wide range of risks, including natural disasters like floods,” she said.

“It’s essential to review the terms and conditions of your specific insurance policy to understand the extent of coverage provided for rain and flood damage. Some policies may have certain exclusions or limitations, so it's crucial to consult with your insurance provider to ensure you have adequate coverage for your needs,” she added.

I have third-party coverage – can I claim insurance cover for rain damage?

“Third-party insurance is the minimum legal requirement for car owners in the UAE and primarily covers liability for injury or damage caused to third parties (other people, vehicles, or property) in an accident where the policyholder is at fault,” Chauhan said.

She explained that in general, third-party insurance does not provide coverage for damage to your own vehicle, including flood damage.

Damage caused by rain, floods, or other natural disasters is typically not covered under third-party insurance. For coverage against rain damage, you would need to opt for a comprehensive car insurance policy, which provides broader coverage including damage from natural disasters like rain and floods.

- Toshita Chauhan, business head for health and motor insurance at Policy Bazaar UAE

Is it possible to appeal an insurance claim rejection in the UAE?

If your policy does provide cover for rain and flood damage, but your claim gets rejected, you have the right to appeal the decision, according to Asif.

However, you must gather evidence to support the claim, review the rejection letter and draft a concise appeal letter to your insurance company.

“Be persistent in advocating for your rights throughout the process,” she said.

Asif also added that motorists can also submit their complaints through the Sandak platform, which handles consumer grievances that were previously handled by the Central Bank of the UAE’s Consumer Protection Department and Insurance Dispute Resolution Committee.