Car Insurance: A Mandatory Requirement
Accidents are unpredictable, even the best of drivers can experience one anytime. Considering the rising cases of road accidents, the authorities of the UAE have placed great importance on measures to reduce these incidents. Introduction of black points, hefty fines and putting lot more importance on having car insurance in UAE are among the most important initiates so far.
To make the above terms clearer for you:
- Black Points: These are points that are imposed on violation of traffic rules in the UAE. Once these points exceed 24, you will be suspended from driving any vehicle for a year.
- Car Insurance: This is a type of insurance policy that covers your car against different types of mishap. Car insurance in UAE is mandatory by law, driving without it can lead to fines and black points.
Road Accidents: What’s Statistics Say
The increasing deaths and injury due to traffic accidents are what led to strict enforcement by law. The data states that in 2016 traffic accidents caused 751 deaths and 6,681 casualties. However, the strictness had led to a reduction in the number of accidents in the UAE over the years. The data shows that in 2017 the number of deaths reduced to 525.
Below is the data ranging from 2013-2016 showing the death and injuries occurred due to road accidents:
|2016||725||Severe- 560Medium- 3110Minor- 3011|
|2015||675||Severe- 722Medium- 2977Minor- 3177|
|2014||712||Severe- 680Medium- 3029Small- 3399|
|2013||651||Severe- 820Medium- 3100Minor- 3823|
The Traffic and Patrols Directorate in Abu Dhabi are working constantly towards decreasing traffic fatalities to 3 per 100,000 by 2021.
Role of Car Insurance
Car Insurance is an insurance agreement that protects your prized possession against unforeseen events such as accident. As per this agreement, the insurance provider guarantees a pre-specified amount as compensation of the expenses incurred due to an accidental damage, injury, third party liability or death. The same can be ensured in exchange for a regular premium.
Why is Car Insurance Important?
Car insurance in UAE is important, as it is a legal requirement, without which you can’t drive your vehicle on the roads of the UAE. Additionally, when you buy car insurance in UAE it provides you the following benefits:
- The tiresome task of car registration is taken care of by the insurance provider.
- The insurance provider will reimburse the value of the car in case of theft.
- The policyholder will be covered for any loss due to natural or manmade calamities.
- In case of a collision with a third party, animal or any objects, the insurance provider will cover any damage or loss involved.
Types of Car Insurance in UAE
There are two types of car insurance in UAE:
Third-Party Car Insurance (or TPL Car Insurance)
This is the most basic type of car insurance and is compulsory by the law. TPL Car Insurance provides protection against any liability arising out of third-party’s property damage or bodily injury caused by the policyholder’s vehicle. When you buy third party car insurance you should be well prepared to pay all the out-of-pocket expenses incurred in repairing your vehicle in case of an accident, as this policy doesn’t cover own damage.
This plan has a lower premium as it provides limited cover. TPL Car Insurance is suitable for someone who has an old car. However, for someone with a luxurious car should consider the Comprehensive Cover.
Comprehensive Car Insurance
Comprehensive car insurance in UAE covers the vehicle from all damages resulting from an accident, i.e. repairs and third party damages. It also covers the vehicle in case of total loss such as theft.
The basic protection involves coverage for the car caused by an accident. However, there are various add-ons available such as coverage for medical expenses, onsite repair, agency repair, alternate car, coverage for personal belongings, among many more. These add-ons vary from provider to provider and can be availed at a higher premium.
How Buy Car Insurance in UAE?
There are a few things to consider instead of buying car insurance in UAE randomly. It includes analyzing your expectations and needs, the reputation of the company, thorough comparison of plans and well weighed insurance policy. You can approach an insurance aggregator such as Policybazaar.ae to compare the plans on your behalf.
In this regard, the below are some of the reputed insurance providers in the UAE to consider while buying car insurance in UAE:
- Adamjee Insurance Co. Ltd.
- Watania Insurance
- Oriental Insurance
- Union Car Insurance
- Salama Islamic Arab Insurance Company
In a Nutshell!
It is highly important to have car insurance in UAE. First and foremost, as it is mandatory by law. The second reason being, it protects you and your vehicle against legal liabilities and financial burden. It is advisable to compare insurance providers and the add-ons they provide.
Road accidents in the UAE have been decreasing by the year. This is possible because the law has put a lot of effort into increasing the strictness. Therefore, it is important to consider the importance the black points hold, as you don’t want to be off the road for a year!