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