Third Party Car Insurance

What is Third Party Car Insurance?

Third party car insurance covers any damage that you accidentally cause to a third-party individual, property, or vehicle. This is in line with Federal Decree-Law No. (14) of 2024 on traffic regulations, as per which insurance is mandatory for any vehicle to be driven in the UAE. The Insurance Authority Board of Directors’ Decision No. (25) of 2016, meanwhile, makes third-party coverage mandatory.

However, third-party liability insurance does not cover any damages to your vehicle. It’s a basic and obligatory auto insurance, mandated by the law. Third-party motor insurance, also known as third-party liability insurance (TPL), is generally more economical than a comprehensive car insurance policy.

Third party insurance premiums on Policybazaar.ae start from AED 630 per year*, making it one of the more affordable ways to stay covered. You can compare insurance plans from multiple insurers in one place and check liability limits, claim support and optional benefits before choosing.

What are the Benefits of Having Third Party Liability Insurance in UAE?

The most significant benefits of buying third party car insurance for your vehicle are listed below:

• Insurance Protection against Liability: It ensures complete protection against liability arising from a third party in case of an accident.
• Protects Your Savings: Third-party car insurance offers a financial safety net and restrains you from dipping into your lifetime savings.
• Premiums at Affordable Rate: Third-party insurance can be availed at an affordable rate.
• Abide by the UAE Law: Third-party car insurance in the UAE is mandatory by the RTA law, so one can’t deny it.
• Provides Absolute Peace of Mind: This insurance cover provides the insured a complete peace of mind by offering legal cover & financial assistance in case of a third party damage.

What are the Inclusions of Third Party Car Insurance in UAE?

Here is the list of inclusions for third-party car insurance in the UAE.

• Bodily injury or death to a third party — The insurer pays the blood money (diya) as set by the court. There is no fixed limit; the amount is strictly as per what the court decides.
• Damage to a third party’s property caused by the insured — In this case, the total claims amount per accident is capped at AED 2 million.
• Injury or death of passengers — If you’re the vehicle owner and one of your family members passes away in an accident, the insurer can pay compensation of up to AED 200,000 per person.
• Ambulance cover — The insurer covers the third party’s expenses for ambulance services and transportation to a hospital. The amount is capped at AED 6,770/person.
• Replacement vehicle or compensation — If a third party’s vehicle is damaged and undergoes repair, the insurer compensates them. This amount can go up to AED 300/day, valid for a maximum of 15 days. Alternatively, the insurer may arrange a substitute vehicle till the repair is completed.

What are the Exclusions of the Third Party Car Insurance in UAE?

Here is the list of exclusions for third-party insurance in the UAE.

• Car replacement
• Injuries/damages caused to the insured vehicle during a mishap
• Contractual liability is excluded
• Any damage caused due to an ongoing war, war-like situation, nuclear risk, etc.
• Accidental death or any injury to the owner of the insured
• When driving without a valid driving license
• Intentional injury or damage
• Driving and causing an accident when under the influence of drugs and/or alcohol

Third Party Liability Car Insurance Add-Ons in UAE

Generally, car insurance(تأمين السيارات) providers do not have a lot of options for add-ons for third party car insurance plans. However, depending on the car insurance provider that you have, you may have the option to add the following add-ons with the basic third-party liability cover:

• Personal Accident Cover for Drivers
• Personal Accident Cover for Passengers

What Factors Affect Your Third Party Car Insurance Premium in UAE?

Many factors impact the cost of third-party motor insurance in the UAE. Here is an overview of the major ones:

• Vehicle type and model : The make and model of the vehicle impact premiums. Generally, the costlier the car, the higher its premiums.
• Your age and driving experience : Younger or less-experienced drivers usually get higher premiums. This is because insurers typically consider such drivers as high risk.
• Claims history : A history of multiple claims shows you as a high-risk driver. The insurer, in turn, sets higher premiums. A record of no claims, on the other hand, can bring down the third-party liability insurance costs.
• Emirate of registration : Where you’ve registered the vehicle also impacts the cost.

What is a No Claims Discount (NCD) on Third-Party Motor Insurance in the UAE?

A No Claims Discount (NCD) or No Claims Bonus is a feature of third-party car insurance. It allows insurers to give you a discount if you don’t make any claims in a policy year. Under UAE motor insurance guidelines, the discount can go up to:

• 10% for 1 claim-free year
• 15% for 2 claim-free years
• 20% for 3 claim-free years

How to Buy Third (3rd) Party Car Insurance in UAE?

Policybazaar.ae makes it easy to find the best third-party car insurance in UAE. In just a few clicks, you can explore the plans from leading insurers and apply in just a few clicks. Here’s the process:

• On Policybazaar.ae, click on ‘Car Insurance’
• Start filling out the form
• Enter a few details, including your
  • Vehicle’s brand and model
  • Manufacturing year of the car
  • Nationality
  • Driving experience in the UAE
  • Past claims (if any) and more
• After submitting the details, you’ll find the most relevant quotes on your screen
• Go through the plans and compare their premiums, features, and more
• Choose the option to apply and follow on-screen instructions

Documents Required to Buy a Third Party Car Insurance Plan in UAE

Following are the documents that you will need to present when buying a third-party car insurance plan:

• Driving license of the owner of the car
• Previous insurance details (if any)
• Registration number and documents of the car
• No claim bonus retention certificate (if any)
• Emirates ID of the applicant
• Passport of the applicant
• Visa page as residency proof
• Additional documents and details like chassis number

Note: confirm with your insurance provider if any additional documents are required as well.

Documents Required for Car Insurance in UAE

How to Renew Third Party Liability Insurance in the UAE?

Renewing a car insurance policy on time is important for every policy holder to keep on enjoying the benefits of the plan uninterruptedly. You can renew the policy online or offline. To renew it online:

1. Visit the official website of the insurance provider in the UAE.
2. Mention the policy details such as policy number, type of policy, etc.
3. Get the suggested premium.
4. Pay the premiums online through credit/debit card or net banking.
5. Get the instant renewal notification through SMS or mail.

If you wish to renew the policy offline, you can visit the branch of the insurer, pay the premium and get it renewed.

What is the difference between Comprehensive and Third Party Car Insurance?

Category	Comprehensive Car Insurance	Third-Party Car Insurance
Coverage	Cover for your own damages and third-party damages as well, based on your car insurance policy terms	Covers you only against third-party damages and losses
Advantages	Protects your pocket from the cost of both damages to your own car and third-party damages as well	Protects your pocket from traffic fines if you accidentally hurt someone on the road
Premium	Comprehensive car insurance is quite expensive when compared to a third-party car insurance plan	Third Party insurance Dubai price is comparatively lower as it doesn't cover any damages to your own vehicle
Customization	Can be customized by adding some specific add-ons based on your needs	No customizations can be done in this type of insurance plan

The First Third-Party Motor Insurance for Rain & Flood Damages in UAE Starting @ AED 350

How to Compare Third Party Car Insurance Online in UAE?

Rather than going with the first quote, it’s always good to compare policies. Online comparisons simplify this further, as you can check the best third-party motor insurance plans from top insurers in one place. On Policybazaar.ae, you can compare premiums, features, add-ons, and more. For your reference, here’s what a quick comparison of the top third-party liability insurance plans looks like:

Feature	Insurance House	Dubai National Insurance (DNI)	Tokio Marine
Premium*	AED 746	AED 764	AED 785
Third-party Damage Limit	AED 2 million	AED 2 million	AED 2 million
Service and Repair Benefits	Not covered ❌	Included ✅	Not covered ❌
Passenger Cover	Included ✅	Available at an additional cost of AED 120	Included ✅
Roadside Assistance	Available at an additional cost of AED 10	Included ✅	Included ✅
	Buy Now	Buy Now	Buy Now

*For reference only. Actual costs may vary.

For further comparisons, enter your details and go to the quotes page on Policybazaar.ae. You can compare up to 5 third-party car insurance plans at once. Explore key features and prices, then apply for a policy that best suits your needs

How to File Third Party Car Insurance Claims in UAE?

Whether you have been in a minor accident or a major collision, it is essential to know how to file a third-party insurance claim. Let’s take a closer look at the scenarios below —

Scenario 1 – When YOU are at Fault

• Call the Police – Report the accident immediately. The police will inspect the situation and issue a police report.
• Get the Police Report – Get a copy of the police report or a hard copy from the accident scene itself.
• Inform the Provider – Once you have this report, inform the insurance company about the accident in detail and share the report too.

Note – Since you are at fault, the third party will file a claim with their insurance company. Your insurance company will align with its provider for settlement.

Scenario 2 – When the OTHER Driver is at Fault

• Obtain the Police Report – Get a police report of the incident specifying that the other driver is at fault.
• Connect with the Insurance Company – Inform the insurance provider about the accident. Share with them the police report and accident details.
• Initiate the Claim – Your provider will file a recovery claim against the other driver’s insurance company.
• Claim Settlement – Once the fault is confirmed, your insurer will arrange for repairs and recover the cost from the third party’s insurance company.

⚡ Quick Hacks –

1. Always get a police report, irrespective of the severity of the accident
2. Take photos and videos of the accident scene as evidence
3. Don’t give in to accepting your fault or sign any documents from the third party
4. If you need any other help with the process, connect with your provider or Policybazaar UAE’s support team for assistance

Top UAE Third Party Car Insurance
GiG Gulf Third Party Car Insurance	Al Wathba Third Party Car Insurance
ADNIC Third Party Car Insurance	Union Third Party Car Insurance
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