From 1st January 2017, car owners are expected to pay a little more than what they were paying previously as premium under the new regulations by UAE government. But not everyone, it mostly affects those who were paying the least possible premium offered by insurance companies mostly for third party insurance. This is because the minimum premium limit is raised and defined by the UAE Insurance authority.
But do we also have access to better benefits against the higher premium price? – The good news is, yes, the car owners in Dubai now have better coverage and have more benefits for the price, so value offered for money is still good.
On the other hand, as there is also a cap at a maximum premium which is 5% to 7% maximum of the car value, a small minority of car owners (mostly luxury and expensive sports car owners) also experience a decrease in their yearly premium cost.
According to Sameh Hafez, who is currently working as Vice President at Oman Insurance Company, the new unified motor policy is designed to offer better coverage and benefits to Third Party Liability insurance and will not have much effect on people with comprehensive insurance coverage.
Why? Because even when the car owners with third party Liability insurance have to pay more, they are also entitled to host of benefits that were previously not available for them. Some of the key new benefits for them include an increase in Property Damage Liability, Agency Repairs for a new car or a car still within manufacturer warranty and Mandatory Hire Car.
The recent changes are evidence that UAE Insurance Authority is serious about taking initiatives to bring car insurance market up to the level of Global and Western standards. The insurance companies are provided with a chance to have better premium prices but only to ensure a better customer experience to their clients.
Overall, the new changes are welcomed as the sign of stability and long-term growth of Dubai insurance market by insurance providers. It is a win-win situation for both car owners and companies. When insurance providers expected to earn more revenue, car owners are also offered more benefits and better service.