Car insurance in the UAE operates under specific laws and regulations that ensure the rights and obligations of both insurance companies and policyholders alike. In this article, we'll delve into the legal aspects of car insurance in the UAE in a straightforward manner.
Mandatory Car Insurance in the UAE
In the UAE, all registered vehicles are required by law to have valid insurance coverage, including cars, motorcycles, and trucks. Third-party liability insurance is the minimum required coverage, which compensates for damages to third-party property or injuries resulting from an accident caused by the insured vehicle. Driving any vehicle on the roads without valid insurance is prohibited by law.
Penalties for Driving Without Insurance in the UAE
Driving without insurance is a legal offense in the UAE. The penalty for uninsured driving includes a fine of AED 500, along with the addition of 4 black points to the driver's license and impoundment of the vehicle for 7 days. However, penalties could escalate significantly, including hefty fines, vehicle impoundment, and even imprisonment in certain cases, depending on the circumstances of the accident. If the uninsured driving results in damage to another vehicle anywhere in the UAE, the liable driver may incur substantial fees, including repair costs for the damages inflicted on the other party's vehicle or property, medical treatment bills if applicable, and possibly face civil lawsuits for psychological damages.
In cases where the accident leads to bodily injury, the driver faces criminal charges. In the event of a fatality, the driver is liable to pay the specified blood money in addition to the consequences of the accident, with the blood money for the deceased amounting to AED 200,000. Hence, the importance of having valid car insurance documentation becomes evident.
Types of Car Insurance in the UAE
Car insurance in the UAE is divided into two primary types:
Third-party Liability Insurance: This is the minimum mandatory coverage, which compensates for losses to third parties, whether individuals or properties, in accidents caused by the insured vehicle. It does not cover any damages to your own vehicle.
Comprehensive Insurance: This type offers broader coverage, including damages to your own vehicle in addition to third-party damages. It may also cover theft, fire, and natural disasters.
Car Insurance Documentation
Car insurance documentation is a legally binding agreement between the insurance company and the insured. The insurance contract specifies coverage details, premiums, terms, and exceptions. The duration of a car insurance document in the UAE is typically 13 months. It's always advisable to carefully read through the insurance document to ensure a complete understanding of its terms before agreeing.
Insurance Claims Settlement
In the event of an accident, it's your responsibility to report it to the insurance company promptly. The insurance company will assess the accident and determine the compensation amount based on the terms of your insurance document. In case of any dispute or disagreement regarding the rightful compensation, you can lodge a formal complaint with the relevant authorities.
Ease of Obtaining Car Insurance in the UAE
Obtaining car insurance in the UAE has become incredibly easy and quick. Acquiring insurance documentation helps you avoid legal penalties for driving without insurance. Through platforms like Shory, you can compare car insurance quotes, whether third-party liability or comprehensive, tailored to your Gulf or non-Gulf specification vehicle. You can customize and purchase insurance documentation that suits your needs instantly, anytime, and from anywhere, in less than 90 seconds.
In Conclusion
Understanding the legal aspects of car insurance in the UAE is crucial for protecting yourself and your rights as an insured individual. Ensure compliance with laws and regulations and choose coverage that meets your requirements and needs to ensure safe driving on the roads.
