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 vehicle | Minimum Premium | Maximum Premium | |
| Salon- Private | 4 Cylinders | 750 | 1,300 |
| 6 Cylinders | 850 | 1,400 | |
| 8 Cylinders | 950 | 1,600 | |
| >8 Cylinders | 1,300 | 2,100 | |
| Salon – Commercial | 4 Cylinders | 750 | 1,350 |
| 6 Cylinders | 850 | 1,500 | |
| 8 Cylinders | 950 | 1,600 | |
| >8 Cylinders | 1,300 | 2,250 | |
| Four Wheel Drive – Private | 4 Cylinders | 1,000 | 1,750 |
| 6 Cylinders | 1,050 | 1,900 | |
| 8 Cylinders | 1,100 | 1,950 | |
| >8 Cylinders | 1,200 | 2,150 | |
| Motor Cycle | Upto 200 cc | 550 | 1,150 |
| Above 200 cc | 600 | 1,150 | |
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 vehicle | Minimum Premium | Personal Accident Benefit for Driver | Personal Accident Benefit for Passenger |
| Salon | 1,300 | 120 | 30 |
| Four Wheel Drive | 2,000 | 120 | 30 |
| Pick up and Van up to 3 tons(light) | 1,550 | 120 | 30 |
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.
