Dubai: Can an insurance coverage firm deny automobile insurance coverage when you have too many fines or site visitors violations in your file? Your driving report is likely one of the most vital features an auto insurance coverage supplier will take a look at if you end up making use of for insurance coverage, based on trade consultants who spoke with Gulf Information. However that doesn’t imply which you could be denied insurance coverage protection due to a poor site visitors report?
Nonetheless, based on consultants, your site visitors historical past can have an effect on the kind of protection you get and the premium you need to pay. Right here is all you have to know.
Driving with out insurance coverage? These are the fines
Automobile insurance coverage is necessary within the UAE and driving a car with out it can lead to a Dh500 fantastic and 4 black factors.
You could be solely eligible for third occasion insurance coverage
In line with Hitesh Motwani , the chief advertising and marketing officer at InsuranceMarket.ae, you can’t be denied automobile insurance coverage protection utterly.
“You may be provided a third-party protection as an alternative. Insurers might deny a complete coverage in case of opposed driving historical past. However we typically do not see this in observe until it is a excessive efficiency car,” he mentioned.
You may be provided a third-party protection as an alternative. Insurers might deny a complete coverage in case of opposed driving historical past. However we typically do not see this in observe until it is a excessive efficiency car.
– Hitesh Motwani , the chief advertising and marketing officer at InsuranceMarket.ae
What to do if I’m denied insurance coverage?
If you’re denied automobile insurance coverage, you’ll be able to file an insurance coverage associated criticism with the UAE’s Central Financial institution.
“The person can file a criticism to the Insurance coverage Authority with all related paperwork (automobile registration card, driver’s licence and Emirates ID) to overview their case, to not less than make sure the automobile is roofed for primary or third occasion insurance coverage to get the automobile registered,” Madiha Asif, staff chief and enterprise analyst at Nexus Insurance coverage Brokers, mentioned.
What’s third-party insurance coverage?
“Third occasion insurance coverage is essentially the most primary insurance coverage [cover] to adjust to UAE Legislation, insuring a person’s legal responsibility towards any bodily damage and property damages to any third occasion brought on by the used of an insured car,” Asif mentioned.
Third occasion insurance coverage is essentially the most primary insurance coverage [cover] to adjust to UAE Legislation, insuring a person’s legal responsibility towards any bodily damage and property damages to any third occasion brought on by the used of an insured car.
– Madiha Asif, staff chief and enterprise analyst at Nexus Insurance coverage Brokers
Complete or third-party insurance coverage? Will depend on the kind of automobile
Your chance of being denied a complete cowl might enhance in case you’re planning to purchase a luxurious car or sports activities automobile.
“For top efficiency automobiles, sometimes valued over Dh500,000, insurers might need to overview full driving historical past earlier than deciding on the premium to be charged together with the choice on whether or not a complete cowl will likely be provided or not,” Motwani mentioned.
He added that if it’s a normal car, there are insurers who supply complete cowl with out actually trying on the historical past of the motive force too.
“One other instance the place insurers deny complete cowl is when the car is non-GCC (Gulf Cooperation Council) specification, however that’s not associated to driving historical past,” he defined.
GCC specification or GCC spec automobiles are designed to face up to the local weather and roads of Gulf nations.
Professionals and cons for third-party insurance coverage
“The professionals of insuring the automobile as third occasion are safety towards authorized legal responsibility and monetary losses, compliance with authorized necessities, and lesser value in comparison with complete insurance coverage,” Asif mentioned.
Nonetheless one of these an insurance coverage cowl is restricted. In line with Asif, when you have third-party insurance coverage cowl, you’ll not be coated for damages that occur to your personal automobile, in case you trigger an accident.
Asif defined that whereas complete insurance coverage, also referred to as ‘full insurance coverage’, is costlier than primary insurance coverage, it protects you from losses incurred from accidents, even when it’s your fault.
“It supplies protection for damages to the insured automobile as a result of unintended collision, overturning, fireplace, exterior explosion, self-ignition, housebreaking, theft, value of repairs and substitute of the insured automobile, whether or not the person is at fault or not,” she mentioned.
