Motor Insurance

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UAE law mandates every vehicle owner to have valid motor insurance for their ride before they take it out on the roads. This law essentially covers all 2-wheeled and 4-wheeled vehicles (including commercial and personal vehicles) which means whether you own a motorbike or a car, you will have to get insurance for the authorities before you can start driving legally. It is punishable by the UAE law to drive a vehicle that does not have a valid motor insurance and may result in fines, black points on your license, and even confiscation in some cases.

What is motor insurance?

Motor insurance is a term that describes all those kinds of insurance policies and plans that offer coverage to all kinds of mortised vehicles including motorcycles, personal 4-wheeled vehicles as well as commercial vehicles (both cars and trucks). Depending on the type of insurance coverage you get, you will be protected against third-party damage liabilities along with covering damages to your own vehicle that are caused by accidents, natural calamities, man-made calamities (like fire), theft, and complete loss of the vehicle. When we say “protect”, it means that motor insurance covers the cost of services that you have opted for (third party liability cover, theft cover, etc.) ensuring that you do not get burdened financially.

Types of motor insurance

Just like health insurance, life insurance, or any other type of insurance, there are several kinds of motor insurance that are available for the customers to choose from. The broadest classification will divide motor insurance into two kinds of categories - types of motor insurance as per the coverage and as per the type of vehicles. Both are explained in detail as follows:

As Per Insurance Coverage Span

1. Third-Party Liability Motor Insurance:

Simply speaking, third-party liability insurance will cover the expenses that you are liable to pay for if you happen to collide with another vehicle and damage it. Third-party liability insurance covers any claims that a third party makes in the event of an accident in which you are at fault. So, it will cover the damages caused to the vehicle as well as the treatment expense of the third-party driver. However, this type of insurance policy will not cover any damages that your own vehicle incurred or the treatment that you had to take to cure the injuries from the same accident.

2. Collision Insurance:

The opposite of third-party insurance covers, collision insurance will cover the damages that your vehicle incurs in the event of an accident. This includes accidents caused by collision with another vehicle, collision with an object like road dividers, fence, etc., and single car roll-over accidents. It does not cover any damages caused to the third-party vehicle or any injuries that you or the third party may have sustained.

3. Comprehensive Motor Insurance:

A comprehensive cover will cover everything that a third party and a collision insurance plan cover along with damages caused by man-made calamities (like fire), natural calamities (like wind, hail, etc.), theft, and total loss of the vehicle. It also gives you a personal accident cover and covers for third-party injuries or death. In addition to all this, a comprehensive insurance cover also gives you the freedom to customise the plan as per your choice using add-ons. Basically, comprehensive motor insurance is the most extensive and valuable kind of motor insurance.

As Per Vehicles Covered

1. Personal Vehicle Insurance:

A private or personal vehicle insurance cover is a mandatory cover for any personal vehicle owned by UAE residents and national or, vehicles rented by tourists. The law mandates every personal vehicle to at least have a third-party insurance cover for it to be eligible for driving. However, the owners can choose to have an additional collision cover for their vehicles or have a comprehensive cover instead of taking two insurance covers.

2. Two-Wheeler Insurance:

Again, a mandatory insurance cover, the two-wheeler insurance cover protects all kinds of two-wheelers like scooters and bikes against damages caused by accidents, man-made disasters like (fire, vandalism, etc.), natural disasters, theft, and total loss. The coverage depends on the type of insurance plan that you opt for. Two-wheelers require a mandatory personal accidental cover that protects the driver as well as the passenger.

3. Commercial Vehicle Insurance:

From heavy commercial vehicles like buses and trucks to light commercial vehicles like taxis, cabs, auto, ambulances, utility vehicles, etc., commercial insurance covers all those vehicles that are used for commercial use and not personal.

General Inclusions of Motor Insurance

  • Damages caused to own vehicles by accident and collision, with another vehicle or object like dividers.
  • Damages caused to own vehicle by fire, vandalism, an act of terrorism, and other man-made disasters
  • Damages caused to own vehicle by natural calamities like hail, earthquake, storms, etc.
  • Total loss of the vehicle due to theft or any other reason
  • Damages caused to the third-party vehicle in case of an accident where you are at fault
  • Injury incurred by third party or death of the third party
  • Add-on protection covers like – engine protection, zero depreciation, accessory cover, extended cover for passengers, etc.

General Exclusions of Motor Insurance

  • Damages caused to own vehicle when involved in unlawful activities
  • Damages due to negligence
  • Damages incurred after the due usage date of the vehicle
  • Damages during war/war-like situations or caused by explosion – nuclear, atomic, etc.
  • Accidents that happened when driving under the influence of alcohol or drugs
  • When the driver does not have a valid license
  • Damages caused by willful actions

Best motor insurance companies in Dubai

There are several brilliant motor insurance companies in UAE like Oman motor insurance and Tokio Marine motor insurance. Following is a list of some of the best motor insurance in UAE along with their providers:

Insurance Companies

Motor Insurance Products

Oman Motor Insurance

  • Comprehensive Cover
  • Third-Party Insurance
  • InsureMyTesla
  • High Net Worth Covers (premium covers)

AXA Motor Insurance

  • Comprehensive and Third Party Covers for Cars
  • Breakdown recovery, Loss and Damage
  • Third-Party Liability, Agency Repair Helmet and Protective Clothing Cover for Motorcycles

Al Fujairah National Insurance Company

  • Comprehensive Motor Insurance with agency and non-agency repair covers
  • Third-party Liability Covers

ADNIC Motor Insurance

  • Platinum Cover
  • Standard Cover
  • Gold Cover

Noor Takaful Motor Insurance

  • Comprehensive Car Insurance Covers
  • Third-Party Liability Car Insurance Covers

Some other top providers of motor insurance in Dubai include RAK motor insurance,

Why Should You Buy Motor Insurance?

It is mandated by the law to buy an insurance cover for your vehicle if you ever want it to be driven. However, there are several other reasons that make buying an insurance cover for vehicles an essential thing for every owner:

  • Keeps your head out of any third-party liabilities and losses.
  • Saves you from fines and charges of traffic rule violation.
  • Covers all the damages and injuries caused by an accident.
  • If your vehicle is new and expensive, a wide coverage insurance plan will not cover the full cost of your lost vehicle but also come in handy when expensive repairs are concerned.
  • The add-ons available on motor insurance even allow you to retain the original invoice value of your vehicle if ever have to make a claim making sure that you get paid in full.

How to Buy Motor Insurance in Dubai?

Just like any other insurance policy, there are two sure-shot ways of buying motor insurance in the UAE – online and offline. When it comes to buying motor insurance offline, the most basic way is of course through a motor insurance agent. But you can also buy motor insurance directly from a branch office of the insurance company. Either way, you will have to physically attend a few meetings with the agents or the concerned authority in order to get your affairs in order and submit the required documents to complete the process.

When you are buying motor insurance online, there are two ways you can go about that. The first is to buy it straight through the website of the insurance company and the second is to buy with the help of a motor insurance aggregator like Policy Bazaar UAE. Both these ways are equally secure, given that you only buy from trusted companies or aggregators. One big advantage that you can have while buying from an aggregator is that you will have the freedom to not only compare insurance plans offered by the same providers but also compare different providers themselves. 

How to Renew a Motor Insurance in UAE?

Renewing motor insurance in UAE is very easy. You can either make a call to your insurance agent if you have bought the insurance offline or visit the motor insurance online portal of the insurance company or the aggregator. Log in to your account and locate the renewal portal. As soon as you in, enter your policy number and other required personal details. Upload scanned documents and proceed to make payment to complete the process. Following is a list of documents you will need at the time of renewal of your motor insurance in Dubai or anywhere else in the UAE (hard copy or scanned):

  • A copy of your passport
  • A copy of your UAE visa page
  • A copy of your driving license along with the original
  • Mulkiya – Th registration details and papers of your vehicle
  • No claim bonus certificate details from the insurance provider (if you are eligible)

Note that no claim bonus on your insurance can only be redeemed during the renewal of the insurance so make sure that you obtain an NCB certificate from your provider beforehand to redeem the bonus which will probably be applied as a discount on your premium amount. A no claim bonus is awarded to the insured if they do not make any insurance claim for the year or period concerned.

What is the Claim Process of Motor Insurance in the UAE?

Filing a claim for motor insurance in Dubai is very simple. You first need to inform your insurance company about the accident or incident for which you are filing a claim. Then submit all the required documents to the insurance company. An investigator will be assigned to your case who will assess all the details of the incident and you will be informed about the results in a few days only. You will also receive a tracking number for your claim which can be used to track the progress.

The documents required for filing a claim of motor insurance in UAE:

  • The original police report
  • A general detailed report of the accident/incident
  • Registration documents of your vehicle
  • Modification certificate for any modifications that the vehicle may have
  • Policy number or documents issued by the provider
  • Valid driving license (yours and the third party)
  • A duly filled claim form from your insurance provider

FAQs about Motor Insurance

Q1. What is meant by Insured Declared Value (IDV)?

Ans. In simple terms, the Insured Declared Value of a vehicle is the market price of that vehicle at the concerning point of time. IDV is calculated by subtracting depreciation of the vehicle from the original showroom price on which it was bought.

Q2. What period length is Motor Insurance in UAE issued for?

Ans. The general validity period for motor insurance is 1 year however, some long-term motor insurance options allow you to buy 3-year or 5-year-long validity insurance plans as well.

Q3. Which motor insurance plan I need to buy the third party or comprehensive?

Ans.  A lot of factors can influence the decision of buying an insurance plan for your vehicle. Solely considering the value and condition of your vehicle, you should go with third-party liability insurance if your vehicle is almost at the end of its due driving years and you can afford to pay for the repairs yourself. Consider a comprehensive insurance plan of your vehicle if it is brand new, top model, and high-tech with expensive company-fitted parts. Or consider it if you happen to live in an accident-prone area.

Q4. What is deductible in a motor insurance policy?

Ans.  The deductible, or the excess, is the amount that is to be borne by the insured themselves out of the total amount of the insurance claim payout. For example, if your insurance claim value is AED 5,000 and the deductible amount is 5% of the claim value, the insurance company will be liable to pay you only AED 4,750 (insurance claim amount – deductible amount) since the deductible amount is to be paid by the insured.

Q5. How do I cancel my policy?

Ans.  Simply contact your insurance company if you want to cancel your current insurance policy. They will guide you through the process which should take about a week or two to completely wrap up.

Q6. How can I pay the excess?

Ans.  The excess or the deductible can be paid off in two ways. Generally, the insurer deducts the amount of the excess when paying the claim settlement amount. The other way is when the insurer directs the insured to pay the deductible first when the insured applies for the claim. However, the second scenario rarely ever takes place.

Q7. How can I stay updated on my vehicle repairs?

Ans.  It is rather to keep in touch with the garage that is handling the repairs of your vehicles. Although, you will also be contacted automatically as soon as the repairs are done and the vehicle is ready to take home.

Q8. How do I recover my vehicle from the place of an accident?

Ans.  Simply contact the emergency services of your insurance company so that they can send a towing service for your vehicle.

Q9. Which garages will be used to repair my vehicle?

Ans.  Every insurance company has a cashless network of garages. These garages can be used to repair your vehicles if the repairs are covered by the motor insurance plan that you have.

Q10. How is motor insurance premium calculated?

Ans.  Premium is calculated on the basis of several factors including the condition of your vehicle, the pre-existing damage on the vehicle, the deductible amount that you have chosen or fixed by the company, the type of coverage that you choose, and the add-ons that you have decided to add. Mind that, the more the deductible amount, the lesser the premium will be.

Q11. What is no claim bonus in a motor insurance policy?

Ans.  No Claim Bonus can be seen as a reward for every year you do not file a claim on your insurance policy. It is a bonus treat given in the form of a discount on your premium for the upcoming year. For example, if your motor insurance premium is AED 10,000 and the No Claim Bonus is 10% then you will only pay AED 9,000 for the concerned year.

Q12. What are the accessories covered in my motor insurance policy?

Ans.  Any basic motor insurance does not cover accessories in it unless you opt for add-ons. Add-ons are allowed to have opted only when you buy a comprehensive insurance plan. The accessories covered under an add-on may differ as per insurance providers although all basic electrical and non-electrical accessories are generally covered. Such as brake lights, fog lights, music system, air conditioner, alloy wheels, standard interior fittings, seat covers, and spoilers.

Q13. Is it possible for me to cancel the motor insurance claim?

Ans.  Yes, it is possible to cancel a motor insurance claim after you have filed it.

Q14. Can I renew my motor insurance policy online?

Ans.  Yes, you can renew your motor insurance policy on online portals. Simply visit the site of the provider or your aggregator like Policy Bazaar UAE. Find the renewal portal. Fill out the form, add documents required and make the payment to renew the policy.

Q15. If I lose my motor insurance original policy would I get a duplicate copy and how?

Ans.  Yes, you can get a duplicate copy of your motor insurance. There are two ways to get a duplicate copy of your motor insurance – online and offline. You will have to first notify your insurance company and then file a formal FIR for the same if you want to procure the duplicate offline. After that comes a little bit of paperwork and a few visits to the nearest branch office. The process of obtaining duplicate copy of motor insurance online is simple. Just log in to your account on the insurer’s website and look for the download icon. Enter the details and go through with a simple verification process to download an e-copy. Once you have a soft copy, you can get it printed to use it as a hard copy as well.

Q16. What should I do in case of an accident?

Ans.  The very first thing to do is to make sure that you and the other party (if any) are not injured critically. Call the police authorities (and the ambulance, if required) and take detailed notes of the accident along with pictures of the accident. File a police complaint immediately and get a copy of it. Inform your insurance company about the accident and the damages so that they can be taken care of right away if they are covered by your motor insurance plan.

Q17. What is reinsurance?

Ans.  Reinsurance is a kind of insurance that is purchased by insurance companies themselves from other insurance providers to protect themselves if a major risk claim happens to come. Reinsurance can be used to transfer a part of the claim settlement money to the other insurance company if it happens to be too big of a sum for the insured company.

Q18. When should I renew my motor insurance?

Ans.  It is best to renew your insurance before the expiration date comes and the policy expires. Most insurance companies may allow a grace period to renew your motor insurance which can become problematic. So, make sure you have renewed the motor insurance before the expiration date itself.