(MENAFN- Khaleej Times)
Motor insurance premiums have been increased by up to 3 per cent in UAE, but motorists who have been involved in accidents and file claims have to pay up to 15 per cent higher premiums.
However, some insurers ask motorists to switch from comprehensive to third-party liability in case of higher claims due to accidents.
Moin ur Rehman, executive director of Unitrust Insurance Broker, said depending on the level of coverage, he added that the cost of motor policies for auto insurers has increased by roughly up to 3 per cent.
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“Increases in auto insurance are more pronounced for drivers with recent claims. Rates are increased by 10-15 per cent in case of claims by the motorists,” he said, adding that sometimes motorists are asked by the same insurer at the time of policy renewal to take a third-party policy instead of comprehensive due to big losses incurred by the company.
Moin ur Rehman
Insurers increased vehicle premiums – especially electric vehicles – after the unprecedented rains in April 2024 which caused massive damages to vehicles in Dubai and Northern Emirates. Thousands of vehicles were damaged during the flooding in April last year, resulting in billions of dirhams of loss for insurers.
Rehman added that insurers have become stricter in the wake of the April 2024 rains , which were the heaviest in the UAE's 75-year history, due to massive losses incurred during the rains.
Avinash Babur
Avinash Babur, chief executive officer of Insurancemarket, said there“have been minor changes in motor insurance premiums, with an approximate increase of 2 per cent so far.”
“In the motor insurance sector, changes have been minimal, with most policies remaining steady,” added Babur.
Amidst the growing population and the arrival of new residents, the number of vehicles in Dubai has also increased in the past few years.
Dubai's toll gate operator Salik 's data showed that registered vehicles increased 8.7 per cent year-on-year to 4.3 million due to the city's macroeconomic growth.
According to official statistics from the Roads and Transport Authority in November last year, the number of vehicles in Dubai during daytime hours has reached 3.5 million. The emirate has recorded a 10 per cent increase in registered vehicles over the past two years, compared to a global average of 2-4 per cent.
Last week, insurers hiked health insurance premiums up to 20 per cent as they added dental and mental coverage, organ transplants, and dialysis to the new upgraded packages.
Babur added that rate revisions generally apply to both individuals and companies.“Increases are not typically segmented, as insurers tend to adjust pricing uniformly across their offerings where applicable.”
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