Dubai is a great place to live with many benefits and perks that are not available in most of the world cities. The government wants to develop Dubai as one of the top options for expats and skilled workers from all around the word. For this, you can expect new laws and regulations to make things easier for consumers.

To Provide Replacement Car is Now Mandatory for Insurance Companies

This time, the government comes up with another new consumer-friendly law related to car insurance. Until now, in the case of an accident, the driver only gets a replacement vehicle only if the insurance policy includes this feature in the plan.

But under the new law, from 1st January 2017, all insured vehicles are entitled to have a replacement car from the insurance provider irrespective of the insurance plan they are paying for. This mean providing a replacement car is now a mandatory feature of all insurance plans in Dubai.

In case, the replacement car is not available, the insurance provider must pay an equal amount of money for 10 days. The compensation is Dh300 per day. The new policy is announced by the director general of Insurance Authority in UAE, Obaid Al Zaabi in September.

This is great news for car owners in Dubai. Up till now, many insurance buyers miss out on this feature while buying the insurance and pay the price when the car goes to repair. With no other option, many car owners have to pay for the car rent until the car is repaired but not anymore.

Some other features added to the insurance policy as must-have include:

  • The liability coverage is now extended to the children, parents, wives, and husbands of the driver.
  • The coverage for properties damaged due to an accident increased to Dh250,000 to Dh 2 million which is a 8 times increase.
  • The new plan also offers additional discounts for drivers with a clean record while drivers with the poor record now have to pay more.

All in all, from 1st January 2017, drivers with a cleaner record can not only save more on insurance plan but the policy now includes more benefits and features for consumers.

About Author

Rachel Al Mughairi

About Author

With over 34 years in the international insurance industry in a variety of senior management roles, and as holder of the Diploma in Insurance from the Chartered Insurance Institute, Rachel surely knows her insurance! With experience in London, continental Europe and the Middle East, Rachel is here to share her knowledge and help you understand more about insurance products in this easy-to-understand series of videos and blogs.