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Premium Rate Schedule for Different Vehicle Types in the UAE: A Deep Dive into the Tariffs Set by the Insurance Authority

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Premium Rate Schedule for Different Vehicle Types in the UAE: A Deep Dive into the Tariffs Set by the Insurance Authority

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Published on 23 Nov 2023

Last updated 15 Dec 2023

3 min read

Motor vehicle insurance in the UAE is governed by a structured premium rate schedule, which is set by the Insurance Authority, a regulatory body under the Central Bank of the UAE (CBUAE). This schedule provides clarity on the minimum and maximum insurance premiums for various vehicle types over a 13-month insurance period. In this article, we’ll delve into the details of these tariffs, offering insights to potential policyholders.

Understanding the Tariffs

The tariffs set by the Insurance Authority serve as a guideline for both insurance companies and policyholders. They ensure transparency, consistency, and fairness in the insurance market. These tariffs are designed to cover all aspects of the policies, including administrative charges, expenses, commissions, and even additional premiums resulting from ambulance and medical transport charges. However, additional covers and add-ons may be charged extra as per the insurer’s policies.

Tariffs of Third Party Liability (TPL) Insurance policies:

Type of vehicleMinimum PremiumMaximum Premium
Salon- Private4 Cylinders7501,300
6 Cylinders8501,400
8 Cylinders9501,600
>8 Cylinders1,3002,100
Salon – Commercial4 Cylinders7501,350
6 Cylinders8501,500
8 Cylinders9501,600
>8 Cylinders1,3002,250
Four Wheel Drive – Private4 Cylinders1,0001,750
6 Cylinders1,0501,900
8 Cylinders1,1001,950
>8 Cylinders1,2002,150
Motor CycleUpto 200 cc5501,150
Above 200 cc6001,150

Note: The table above is a condensed version and the premiums mentioned exclude VAT, any add-ons and additional covers. For a comprehensive list, policyholders should refer to the official premium rate schedule set by the CBUAE.

Tariffs of Motor Vehicle Comprehensive Insurance Policy:

Type of vehicleMinimum PremiumPersonal Accident Benefit for DriverPersonal Accident Benefit for Passenger
Salon1,30012030
Four Wheel Drive2,00012030
Pick up and Van up to 3 tons(light)1,55012030

Note: The table above is a condensed version and the premiums mentioned exclude VAT, any add-ons and additional covers. For a comprehensive list, policyholders should refer to the official premium rate schedule set by the CBUAE.

Why the Tariffs Matter

The tariffs set by the Insurance Authority are not arbitrary. They are based on extensive research, market trends, and actuarial data. By setting a minimum and maximum premium, the Insurance Authority ensures that policyholders are neither overcharged nor under-protected. It strikes a balance, ensuring affordability while maintaining the financial health of insurance companies.

Conclusion: Navigating the Insurance Landscape with Confidence

For potential policyholders in the UAE, understanding the premium rate schedule is paramount. It provides a clear picture of financial commitments and ensures that they get the best value for their money. By staying informed and referring to the official guidelines, policyholders can navigate the insurance landscape with confidence and peace of mind.

author

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.

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