UAE – Motor insurance prices to be reviewed
Wednesday, 02 01 2017, Category: Insurance and Reinsurance, Country: U.A.E
Authorities should cancel a newly-introduced minimum rate for car insurance, a Federal National Council member said on Tuesday.
Dubai member Hamad Al Rahoomi questioned Sultan Al Mansouri, Minister of Economy, about the logic behind the new rule, which went into effect on January 1 and set minimum rates of Dh700 for partial insurance and Dh1,000 for full insurance.
Mr Al Mansouri said 16 out of 61 insurance companies have had major losses, while investments had reached Dh39 billion in 2015, showing some growth in the field.
Compensation paid out by car insurers reached more than Dh4.7bn.
It was therefore important to unify insurance procedures, especially because more than 90 per cent of complaints filed to the authority related to vehicle insurance, said Mr Al Mansouri.
Source: The National - UAE