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FAQ

General Insurance

What is insurance?

Insurance is a process whereby a party called “the Insurer” undertakes to another party called “the Insured”, against a premium payable by the latter, that “the Insurer” shall compensate “the Insured” for the loss that “the Insured” may incur in the case of a risk is realized.

What is a premium?
The premium is an amount of money which the Insured is committed to pay in a single payment or successive payments to the Insurer in return for the latter's commitment to assume liability for the risks insured. A premium in insurance is a key element and an obligation of the Insured which is incorporated into the contract structure. It makes the insurance contract commutative. Furthermore, the premium is as important as the risk; no insurance without risk and no insurance without premium.

The installment is legally the reason for the Insurer's obligation to insure the risk; and technically, Insurers depend on installments to settle disaster claims.
What are the most important types of insurance?
1) Insurance of human lives and fund accumulation operations. (Life insurance, health insurance, fund accumulation operations)

2) Property Insurance, Motor insurance, fire insurance, marine insurance, etc.

3) Liability Insurance, Third Party Liability for vehicles, personal accident insurance, employer liability insurance, insurance of trains, insurance of cash, etc.

Motor Insurance

Why do I need car insurance?

To repair &/or replace damages up to sum insured of the vehicle declared in the policy,following a road accident involving your car.
To cover the expenses towards the Third party – Both Bodily injury towards Third Party and Third Party property damage.
To comply with regulatory requirements of UAE as it is illegal to drive the vehicle with no insurance.

What sort of policy should I choose?

You can chose from two types of cover:
1. Comprehensive - as the name mentions is a comprehensive insurance which covers the damage to your vehicle as well.
2. Third Party - which covers the expenses towards third party bodily injury and property damage for which you are liable, in the event of a claim where your vehicle is involved.

Consider the pros and cons of each and choose the appropriate cover for your needs.

What is an excess?

An Excess is an amount which is mentioned in the policy schedule which you as the policy holder will have to pay in the event of a claim.

For eg: if the policy mentions an excess of AED250, then in the event of a claim involving your vehicle, the first AED 250 has to be borne by you.

There are two types of excesses

Compulsory Excess – which is imposed by Insurers
Voluntary Excess – which the policy holder can chose to bring down the premium

Not all Insurers in UAE market have voluntary excess option.
The phrase 'total excess' combines these two factors which is the amount you pay in the event of a claim.

What's a no claims bonus?

A no claims bonus (NCB) is awarded for each year you hold private car insurance in your own name without making a claim. Most companies only accept NCB earned in the UAE and from policies expired within the last two years.

Can I apply my no claims bonus to a second car?

No. The no claims bonus applies to a single car; it can be transferred to an alternative car, but it can’t be applied to an additional car or another vehicle.

Can I have Agency Repairs for my car?

Agency repairs are normally offered by Insurers for a period till first 2 years of registration. However, there are some International Insurers who can offer Agency Repairs up to 5 years subject to no claims and at an additional premium.

What are the optional benefits that I can avail?
  • Personal Accident to drivers and passengers
  • Hire car benefit
  • Road side Assistance
  • Replacement car
Do I get a courtesy car after an accident?
You can, if you have opted for that benefit under your vehicle insurance. Please check the policy wording for this and for any restrictions on availability.
Most insurers will not provide a courtesy car in the case of your vehicle being a write-off, although some may offer so-called total-loss courtesy car cover.
How do I work out my car's value?
Always estimate your car's value honestly, but an approximate estimation is usually fine as an insurer will typically base a pay-out on market value. Usually a depreciation of 15-20% is calculated every year.
Will I be charged if I cancel my policy?
If you cancel your policy within the cooling-off period some insurance providers may charge a fee to cover their administration costs in addition to a charge for the cover provided.
What do I do in the event of a claim involving my vehicle?
You can follow the following steps in the event of a claim.

1.Register the accident immediately with Police and obtain police report.
2.Notify insurers advising of the loss immediately. If you are dealing with a broker, mark a copy to them as well so that they can facilitate the efficient settlement of legitimate claims on your behalf.
3.Submit the necessary documents as listed below.
A)Original Police report
B) Copy of Mulkiya
C) Copy of driving license.

Please also note you will be required to pay policy excess as mentioned the policy under the following circumstances:

A) In case you &/or driver is held responsible for the accident.
B) Damages are caused to your car by unknown part(ies).

Health Insurance

What is covered under health insurance?

Covers all reasonable and customary In and Out Patient medical expenses, incurred by the insured member arising after the inception of the policy and up to the limits mentioned in the policy

Benefits offered

Basic benefits: Outpatient, diagnostic, pharmaceutical and hospitalization treatments

Additional benefits as per DHA compliance: Maternity, Pre-existing and chronic conditions, preventive screening, child vaccinations

Optional Benefits: Optical, dental, wellness checkups, gatekeeper facilities

Emergencies : Emergency ambulance services Repatriation and Evacuation 24 hours Helpline

Types of cover

Individual, family, SME and Large Groups (for employees more than 50)

Factors affecting the premium of health Insurance

Age of the member
Gender of the member
Level of cover required
Deductible and network chosen
Health conditions of the member

What is loss ratio

It is the total losses incurred (paid and reserved) in claims plus any adjustments expenses divided by the total premium earned.

Are there exclusions on health insurance policies?

Yes there are. Highlighted are some of the major exclusions:

  • Treatments that are not medically necessary
  • Skin disorders
  • Allergy testing
  • Routine medical examinations and/or general check ups
  • Drug abuse
  • Self-inflicted injuries
  • Infertility
  • Cosmetic surgery
  • Preventive treatment
Please note that the list is not exhaustive. Please refer to the policy wording for compete list of exclusions.

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