The Board of Directors of the Insurance Commission decided to amend the tariff of vehicle insurance rates by granting insurance companies the power to deduct from the minimum insurance premium of up to / 50% / for vehicles working in the first line of defense from the medical sector, the police, civil defense, the elderly, owners of determination, and the insurance student / Individuals / record with no accident.
The amendments also included giving companies the possibility to return a portion of the insurance premiums with respect to the vehicle documents in effect or a reduction in the insurance premium from the minimum when renewing the insurance policy in proportion to the periods of application of the national sterilization system issued by the competent authorities.
The decisions included that the company has the right to calculate the premiums for new or renewed documents by making them related to the kilometers covered by the vehicle, in the event that the insured requests it, provided that the insurance premium does not exceed the maximum specified in the vehicle insurance tariff rates determined by the authority with the possibility of lowering the minimum.
His Excellency Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the Board of Directors of the Insurance Authority, said that these new decisions are part of a package of measures taken by the authority to alleviate the public of the insured and some segments of society from the impact of the repercussions of the new Corona virus "Covid-19", including the first line of defense from doctors And nurses and workers in the health field and employees of the army, police and civil defense, as well as groups of people of determination and the elderly, in addition to the inclusion of individuals seeking insurance holders of the record free of accidents.
His Excellency added that these decisions also come in appreciation of the Insurance Authority for the role played by workers in the health sector, police, civil defense and armed forces personnel and the great efforts made by workers in these sectors to preserve lives and property, in addition to taking into account the conditions of the categories of people of determination, the elderly and owners of the empty registry From accidents.
His Excellency stressed the importance of insurance companies activating the deductions granted to the public of the insured at the minimum price of insurance documents whenever its provisions are available, based on the participatory role of the insurance sector in providing protection from dangers to the public of the insured, especially in light of the general sterilization decisions announced by the competent authorities This reduces vehicle use and thus reduces accidents and reduces costs for insurance companies.
His Excellency the Minister of Economy, Chairman of the Authority’s Board of Directors, also stressed the importance of protecting policy holders and the insured to confront the effects of the current circumstances on the insurance sector, protecting the insurance parties and providing insurance coverage and appropriate services to the public at this stage, which will positively reflect on the future relationship between the insured and companies and contributes to Enhancing the role of the insurance sector in protecting and protecting the rights of insured persons.
According to the amendments approved by the Board of Directors of the Insurance Authority on Resolution No. / 30/2016 and its amendments regarding the vehicle insurance tariff, the company will have to reduce the minimum insurance premium when renewing or issuing a new insurance policy by a rate that does not exceed / 50% / of the minimum insurance premium For vehicles of the following categories: / workers in the medical sector, army and police affiliates, civil defense affiliates, people of determination, elderly people over the age of 60 years, and individuals seeking insurance who have an accident-free registry.
The amendments included that the company have to return part of the insurance premiums with respect to the vehicle’s valid documents or a reduction in the insurance premium from the minimum when renewing the insurance policy, taking into account that the vehicles are not used in implementation of sterilization decisions, and that it is appropriate for what is returned from the premium or reduced and the period of total sterilization / prevention from Wandering / such as the emirate of Dubai, or part-time, is limited to a number of hours per day / 10 / hours, as determined in other emirates of the country.
The amendments also included that the company has the right to change the calculation of premiums for new or renewed documents by making them related to the kilometers covered by the vehicle or that the customer wishes to cover in the event that the insured requests that, and provided that the insurance premium does not exceed the maximum set in the price tariff system with the possibility of reducing the limit The lowest.
This trend comes within the framework of the authority’s keenness to stimulate innovation and push companies towards offering innovative insurance products, including the insurance product according to kilometers, which is known globally as “Pay as you go” to meet the needs of vehicle drivers who do not travel long distances and are looking to pay insurance premiums Suit their actual needs.
The authority emphasized that the work of this insurance product does not modify or cancel vehicle insurance policies of both types / from civil liability or loss and damage / and both are issued according to the unified system of vehicle insurance policies. Also, it may be appropriate to start applying such products in light of the sterilization periods that lead to a reduction in the vehicle's usage times.
The Authority also affirmed, in a related context, that in keeping with the new procedures followed by the Ministry of Interior to renew the vehicle without inspection, it is of utmost importance that companies adhere to renew insurance policies with no technical examination of the vehicle without the right to refuse coverage, as well as taking into account the current conditions in relation to lead times Scheduled for reporting incidents and sterilization periods announced by the competent official authorities.