UAE – Insurers impose deductibles on spare parts
Monday, 08 01 2016, Category: Insurance and Reinsurance, Country: U.A.E
Officials of the insurance sector said that insurance companies are becoming more prudent in their motor insurance pricing by imposing deductibles on spare parts during the second and third year of the comprehensive coverage, indicating that these deductibles range between 5 and 15% of the value of the spare part according to the model of the vehicle.
They confirmed to “Emirates Today” that there is a greater focus on pricing insurance policies according to technical and actuarial bases in order to evaluate accurately the price and avoid losses, indicating that the rising maintenance and repair costs at agencies will have an impact on the financial liabilities of insurance companies.
Moreover, they clarified that the market is currently correcting motor insurance prices since the past years witnessed large decreases due to competition.