UAE - Vehicle insurance covers flood damage

Motorists whose vehicles were damaged in floods earlier this month will have to be compensated by their insurance firms, a minister clarified at a Federal National Council (FNC) meeting on Tuesday.

Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Federal Insurance Authority, assured motorists that insurance companies are obliged to cover any damage suffered by vehicles as a result of natural disasters, such as thunderbolts and floods. This is part of the unified policy that insures the vehicle against risks of loss and mass damage.

Al Mansouri made the remarks in a written letter read to FNC members in response to a question raised by Hamad Ahmed Al Rahoumi, first deputy speaker.

Some motorists whose vehicles were damaged in flooded roads were confused and uncertain on whether insurance firms will compensate them for the damages as many didn't know about the law.

"The unified insurance policy doesn't exclude damages resulting from natural disasters, either directly or indirectly," the minister said, stressing that the insurance authority has been keen on organising campaigns to raise car owners' awareness of their rights.

In a previous Khaleej Times report, experts explained that damage to a vehicle or property caused by heavy rain and floods is generally covered under UAE insurance policies - unless it has been explicitly excluded in the agreement.


Source: Khaleej Times