Comprehensive and Third Party Car Insurance in the UAE Explained

Comprehensive and Third Party Car Insurance in the UAE Explained
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With the frequency of accidents in the UAE, motor insurance is the best way to make sure that accidents don’t empty your pockets and put a dent to your finances. While comprehensive motor insurance can be a bit more expensive than Third party car insurance, these two have different purposes. 

Below we have explained comprehensive motor insurance and Third party car insurance, in details.

Comprehensive Motor Insurance

A comprehensive motor insurance offers wider range of coverage for your car. It also covers damages on your car caused by fire, theft, flood, accidents, etc. This insurance also covers third party insurance, which is damage caused to a third party’s car due to your mistake. And make sure to check with the car insurance provider whether injuries or passengers covers are provided too.

Comprehensive motor insurance is a great option if you have taken out a loan on your car or you have an expensive car. Sure, it might cost you few more dirhams but it will save you a lot in the future.

Here we have compiled a list of covers included in the comprehensive motor insurance-

  • Windshield damages
  • Vandalism
  • Flood
  • Fire
  • Natural disasters
  • Damage caused by hitting an animal
  • Third party damage
  • Damage caused by accidents

Here is the list of things not included in the comprehensive motor insurance-

  • Electrical or mechanical failures
  • Damages caused by DUI
  • Tire damages
  • Damages caused by aging of the car
  • Decreasing value of your car

Third Party Car Insurance

According to the laws of UAE, third party car insurance is mandatory. This is the most basic form of motor insurance in UAE. This insurance covers the damages caused to a third party by your car. While damages to your car are not covered by third party car insurance, it covers the damages caused by your car.

Here is a list of instances which are covered by third party car insurance-

  • Property damage by the insured vehicle
  • Injuries or death caused by the insured vehicle
  • Third party theft
  • Fire

Below is the list of instances not covered by third party car insurance-

  • Injuries from an accident
  • Damages of the insured car
  • No option for replacement car

We have also compiled a list of the best motor insurance companies In the UAE-

SALAMA Islamic Arab Car Insurance Company

SALAMA insurance company offers one of the best comprehensive motor insurance in the UAE. It is Shariah compliant.

        Comprehensive Motor Insurance

       Third Party Motor Insurance

Accidental damage

Compensation to the third party for the damage caused by the insurer

Fire, lightning, natural disasters

Death or injuries caused by the insurer/ driver

Burglary and malicious act by others

Property damage caused by the insurer

Damage while transporting

No cover for the damage to the insurer’s car, in case of the accident caused by the insurer

Oriental Car Insurance Company

Oriental insurance company started its business in the year 1960 with the help of LLC, Arab Insurance Works. Since then it has expanded overseas too. It also one of the best insurance companies in India.

      Comprehensive Motor Insurance

           Third Party Motor Insurance

Accidental damage

Body injury, car/property damage of the third party

Vandalism and Theft

Legal liability (any one accident, up to DHS 250,000)

Fire, Natural disasters, etc

Death or bodily injury of the third party (compensation as ordered by the court)

During transit

UAE only

Damage by third party

 

Watania Car Insurance

Watania insurance is designed to be simple and budget friendly.

      Comprehensive Motor Insurance

         Third Party Motor Insurance

Accidental damage

In case of an accident caused by the insurer, the insurer and the their car are not covered

Explosions or natural disasters

Compensation to the people involved in the accident caused by the insured

Damage from robbery

Compensation to the third party as dictated by court, except the fine

Damage during car transport

Company will pay AED 6770 for the ambulance services/ transportation to hospital

Damage by malicious act by a third party

AED 2000,000 compensation (for any one time accidental property damage)

Additional coverage to be requested

 

 

In Conclusion

Comprehensive motor insurance offers damage coverage to the insured vehicle. And the third party car insurance covers damages caused by the insured vehicle. Also the third party car insurance doesn’t cover damages caused to the insured vehicle. That is the difference between comprehensive motor insurance and third party car insurance.

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