Be ready for anything

Uday Kalra, a 37-year-old software developer, has a penchant for off-road driving and speed. In a country where the number of automobile owners is among the highest in the world, Kalra is among the few people who shopped around for an insurance policy for his gleaming silver Toyota Prado.

"The first time most auto owners read their insurance policy is when they have an accident, and that's when they realise that their cover does not give them ample protection," says Kalra.

Before purchasing a policy, ask questions and make sure you understand what it is you're signing. Some of the terms used in insurance policies can be confusing, so read all the fine print carefully. "Always check the limits on the policy," says Julien Audrerie, Marketing Manager, AXA Insurance Gulf.

"A third party property damage limit of Dh500,000 (as per the standard Ministry wording in the UAE) might not be enough to fully protect you — say you hit a Ferrari and a lamp post and then have to fork out Dh1.5 million," he says.

According to Mahmoud Nodjoumi, international vice president, Chartered Insurance Institute, the areas of life, health and auto insurance will see major growth in 2008.

"The Middle East insurance market is set to witness high expansion levels this year, as increased demand for private health insurance, a rise in the availability of Takaful (Islamic compliant) insurance, and ongoing expansion have combined to create this development.

Auto and home insurance are tipped to be major growth areas this year," says Nodjoumi. Most companies offer comprehensive cover for both saloon and four wheel drives that includes two years' agency repairs for brand new vehicles, off-road cover for four wheel drives and a 24-hour accident and recovery service.

Some policies also offer extended cover to include visits to Oman and a third party property damage limit up to Dh2.5 million.

Policies may automatically cover private cars when being driven off road provided the car has four wheel drive capability and is not used in a race or competitive event.

Audrerie says that blood money is not considered a special case as the law requires insurance companies to pay indemnity to a third party (or a passenger travelling with the insured) in the event of an accident.

Though the UAE government is encouraging a higher level of safety consciousness with compulsory auto insurance and stringent driving rules, UAE vehicle owners must also be responsible and safe drivers. "When insuring your car, it is important to look at the type and extent of cover provided to you by your insurer.

Not all insurance companies in this region provide comprehensive insurance cover that protects your car against damage caused by floods, cyclones, storms, lightning, fire, explosions and other natural perils," says Karl Gray, Chief Operating Officer, Personal Lines, Royal & SunAlliance UAE.
During the recent rainstorms in the UAE and cyclone Gonu in Oman, Royal & SunAlliance and Axa honoured several customer claims arising out of the havoc caused by the two natural catastrophes. n

Ready for the rain?

Driving when it's wet

• If it has been raining continuously for a long time, avoid driving. If you have to drive, then drive slowly, even if the roads are empty, to avoid skidding on slippery roads.
• Listen to local radio stations for up-to-date information on flooding. Follow advice and instructions of the authorities who are monitoring the situation.
• Check the safest route from your home or business should you have to leave in a hurry. Have a map of your local area handy.

• Check if local roads may already be blocked and impassable. Do not attempt to drive across flooded roads if you are able to drive around.
• Do not attempt to forcibly start your car or crank the engine if your car does not start. If you are driving and your car stalls, then do not force a start-up but slowly push the car to a safe area and immediately call your insurance company to have it towed or moved on a recovery truck to a service centre for inspection.

Source: Royal & SunAlliance UAE

Insurance checklist
Are you covered?

• Confirm if they cover natural calamities. Confirm if your 4x4 is covered in the desert as it might be useful for weekend jaunts.

• Does the insurer use approved garages to carry out repairs?

• Will the insurer provide you with a 24-hour breakdown service or a hire car valet service in the event your car needs to be repaired and you need another one in its place?

• If you are a responsible and safe driver, use an insurance company that will reward your claim free status by giving you a discount.

• How reputable is the company providing the insurance? The company must still be open when you have a claim.

• Don't feel obliged to accept the insurance offered you at the car showroom.

• Take time to investigate the type of cover being offered as well as the company that is providing the cover.

• Check if you can obtain a discount by setting up your policy over the phone with a credit card.

Source: Axa Insurance Gulf