In the intricate world of motor vehicle insurance, understanding what is covered is only half the battle. Equally important is knowing what isn’t covered. The UAE, with its diverse vehicular landscape, has specific exclusions in its loss and damage policies for motor vehicles. This article aims to shed light on these exclusions, ensuring that vehicle owners are well-informed and never caught off guard.

Understanding the Importance of Exclusions

Before diving into the specifics, it’s essential to understand why exclusions exist. Insurance policies aim to provide protection against unforeseen and accidental incidents. Exclusions help define the boundaries of this protection, ensuring clarity for both the insurer and the insured.

Key Exclusions in the UAE’s Motor Vehicle Insurance policies

1. Weight Overload: Damages resulting from overloading a vehicle beyond its specified weight limit are typically not covered. This emphasizes the importance of adhering to a vehicle’s weight capacity for both safety and insurance validity.
Example – Imagine you own a pickup truck with a specified weight limit of 1,000 kg. One day, you decide to transport construction materials weighing 1,500 kg. On the way, one of the tires bursts due to the overload, causing an accident. In this scenario, the insurance might not cover the damages since the vehicle was overloaded beyond its capacity.

2. Usage Beyond Specified Purposes: If a vehicle is used for purposes other than what it’s insured for, any resulting damages might not be covered. For instance, using a personal vehicle for commercial purposes without the appropriate coverage might lead to claim denials.

Example – Let’s say you have a personal car insured for private use. However, you decide to use it for a weekend job delivering pizzas. If an accident occurs during one of these deliveries, the insurance might not cover the damages since the vehicle was used for commercial purposes without the appropriate coverage.

3. Intentional Law Violations: Engaging in activities deemed as intentional felonies or misdemeanours, such as participating in illegal races, can lead to exclusion from coverage. It’s a reminder that insurance doesn’t protect against intentional reckless behavior.

Example – Consider a situation where a vehicle owner decides to participate in an illegal street race. During the race, they crash into a lamppost. The damages from this incident might not be covered by insurance since it resulted from an intentional violation of traffic laws.

4. Driving Under Influence: Damages occurring when the driver is under the influence of narcotics or alcohol, impairing their ability to control the vehicle, are excluded. This reinforces the importance of responsible driving.

Example – After a night out with friends, a person decides to drive home despite having consumed alcohol. On the way, they swerve into another lane and collide with another vehicle. The insurance might not cover the damages since the driver was under the influence, impairing their ability to drive safely.

5. Unlicensed Driving: If the driver involved in an incident is unlicensed or driving with an expired license, the insurance might not cover the damages. Regular license renewals and ensuring only licensed individuals drive the vehicle are crucial.

Example – A teenager, eager to drive but without a valid license, takes their parent’s car for a spin. Unfortunately, they end up in a minor accident. The insurance might not cover the damages since the driver was unlicensed at the time of the incident.

Conclusion: The Road Less Travelled

While motor vehicle insurance provides a safety net, it’s essential to be aware of the net’s edges. By understanding the exclusions in the loss and damage policy, vehicle owners in the UAE can make informed decisions, drive responsibly, and ensure they’re always protected.

About Author

Rahul Matiwadekar

About Author

Rahul brings more than 10 years of experience in the international banking, insurance, and finance industry, having worked in various roles from advisory to managerial positions. With his extensive knowledge and understanding of insurance, he is here to share his expertise and help you gain a better understanding of insurance products, processes, and more through his easy-to-understand blog posts.