UAE – Insurers not allowed to change deductible
Wednesday, 04 06 2016, Category: Insurance and Reinsurance, Country: U.A.E
Some customers said that insurance companies operating in the local market are increasing the deductible (the amount borne by the insureds when they cause an accident) whenever the motor insurance contract is renewed.
In turn, the Insurance Authority told “Emarat Al Youm” that the first amounts borne by the car owner at each accident are set by the Authority through instructions confirming that the insurance company cannot exceed these amounts.
Moreover, directors and employees of the insurance sector said that companies increase deductibles for drivers who caused accidents as the insured has to bear a part of the cost that he causes in order for him to have an incentive to be more prudent and drive safely. They noted that other companies do not renew the policy in case the losses are large.
Source: Emarat Al Youm