Third Party Car Insurance

Why do you think you might need third-party car insurance in the UAE? The major reason behind this is a whopping rise in road accidents, in spite of strict traffic rules in place. The mishaps can be attributed to perilous driving practices that are relatively common, especially on highways. But what do you do when a third party asks you to pay for the damage repairs after a harrowing accident? In such cases, third party car insurance is your only way to mitigate this financial burden

Third-party car insurance works a little differently from regular car insurance in Dubai. So, basically, it is to cover for damages done to a third party. Let us move ahead and learn more about how third-party car insurance works.

What is Third Party Car Insurance?

Third party car insurance covers all the damages, accidentally caused to a third-party vehicle by you. However, third-party liability insurance does not cover any damages incurred by your vehicle. Third-party car insurance in the UAE is basic and obligatory auto insurance, mandated by the law. Third-party car insurance, also known as third-party liability insurance (TPL), is generally economical in comparison to a comprehensive car insurance policy

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

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

1. Insurance Protection against Liability: It ensures complete protection against liability arising from a third party in case of an accident.
2. Protects Your Savings: Third-party car insurance offers a financial safety net and restrains you from dipping into your lifetime savings.
3. Premiums at Affordable Rate: Third-party insurance can be availed at an affordable rate.
4. Abide by the UAE Law: Third-party car insurance in the UAE is mandatory by the RTA law, so one can’t deny it.
5. 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.

Calculate Your Car Insurance Premium

What are the Inclusions of a Third Party Insurance?

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

• Bodily injury or death to a third party
• Damage to third-party’s property caused by the insured

What are the Exclusions of the Third-Party Car Insurance?

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
• Intentional injury or damage
• Driving and causing an accident when under the influence of drugs and/or alcohol

Third-Party Car Insurance Add-Ons

Generally, car insurance 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

Best Third-Party Car Insurance Companies in UAE

Following is a list of all top third-party insurance companies in UAE and the highlights of their offered plan:

Eligibility Criteria to Buy Third-Party Car Insurance

Following is the eligibility criteria for buying third-party car insurance in UAE:

• Any UAE national or residents who own a car registered in UAE under their name
• Minimum age for buying car insurance – 25 years
• Maximum age for buying car insurance – 65 years (may fluctuate a little as per providers)
• The applicant must have a valid driving license. The applicant should have had their license for about 2 years in case they have migrated from a foreign country, preferably.

How to Buy Third-Party Car Insurance in the UAE?

Third-party insurance in Dubai comes in handy in the hour of need. It is mandated by law, so you don’t have a choice there, however, you can do great by choosing the right third-party insurance.

Here is an easy way to help you find the best third-party car insurance in UAE:

1. Explore the Market: Shop around, explore various options available and bag one that suits you. Make an informed decision by carefully considering your requirement from a plan.
2. Car Mileage Counts: Insurers consider the more you drive, the more are the chances of meeting with accidents. Reducing your car mileage will lead to a lower auto insurance premium.
3. Bundle the Insurance Policies from One Insurer: It’s true that you can’t do a lot about TPL premium, as it is decided by the UAE Insurance but, by buying multiple insurances from one insurance provider; you can get competitive premium rates.

Third-party insurance premium in the UAE is regulated by the UAE Insurance Authority. However, it has been noticed that car insurance premium in the country has drastically been increased over the period.

As comprehensive insurance comes with a higher cost, most of the people in the UAE prefer third-party liability insurance because it is quite affordable & cheaper than any other policy.

Documents Required to Buy a Third-Party Car Insurance Plan

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.

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?

How to Compare Third-Party Insurance Online?

Online comparison is one of the most reliable ways to make sure that you end with a right insurance plan in your hands. A comparison enables you to find a policy that perfectly suits your insurance needs.

Here is the list of things you must compare to while choosing a third-party car insurance plan for yourself.

• Offerings
• Premium
• Claim settlement ratio

You can visit Policybazzar.ae, to compare third party car insurance plans. Here, you’ll find all the details like - car make and model, manufacturing year, cubic capacity, personal information, etc. The website compares the plans based on your needs and comes up with the best available options.

How to File Third-Party Car Insurance Claims?

Two possible scenarios can present themselves when an accident has happened. First – where you are at fault and the second – where the other driver is at fault. Following is the list of steps you should follow as per the scenario.

Case 1 – When you are at fault 

• Lodge an FIR and get it sent to your email or home.
• Contact the insurance company and inform them about the accident.
• Give a proper and honest description of the accident and forward the FIR
• You as the defaulter do not have to raise any claim here. The other party (third-party) will raise the claim via their insurance and your provider will take it from there. 

Case 2 – When the other party is at fault

• Have the FIR lodged and get a copy of the original for yourself
• Send it to your insurance provider and explain the events that took place
• After investigating the situation, your insurance company will raise a claim against the third party and contact their insurer.
• Claim payout will be handled by companies themselves as soon as the defaulter has been established. 

Third Party Car Insurance Frequently Asked Questions