It includes extending the term of the utility allowance, the "total loss" and the treatment expenses, and the appointment of an expert to assess the damages

Insurance Association: 4 main benefits in the new amendments to the "Motor Vehicle Policy"

• Before the adjustments were made, there were differences that affected the level of service compared to the customer's expectations with the terms of the insurance contract.

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• Issam Maslamani: "The new amendments contribute to reducing complaints, and take into account the requirements and rights of the insurance company and the insured."

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A member of the Higher Technical Committee and Chairman of the Automobile Committee at the Emirates Insurance Association, Essam Maslamani, said that the Insurance Authority Board of Directors Decision (No. 26) of 2020 amending some provisions of the Authority’s Board of Directors Decision (No. 25) of 2016, regarding the motor insurance policy, ”included Four basic benefits for customers, pointing out that the new amendments contribute to reducing complaints, and take into account the requirements and rights of the insurance company and the insured alike.

Maslamani added to "Emirates Today", that the most prominent benefits were the extension of the maximum period of the benefit / consequential loss allowance (up to 300 dirhams per day) to 15 days, compared to 10 days previously, in addition to an amendment in some items of total loss, in addition to A letter of commitment to be directed to the treatment party regarding the treatment expenses, in addition to the insurance authority assigning a specialist in detecting and assessing damages regarding the damage value or the amount of compensation / market value of the vehicle.

allowance

Maslamani explained that the first benefit in the amendments was that the insurance company’s liability for the lost benefit allowance for each day for each damaged vehicle is calculated according to the fare value of an alternative vehicle similar to the same type of vehicle considering the prevailing and common price in the vehicle rental market in that emirate, and without It exceeds a daily maximum of 300 dirhams, and that the maximum period for the lost benefit allowance is 15 days, indicating that the previous period was calculated for 10 days only.

He stated that the amendments took into account the practical experience of the prevailing laws, so that the amendments come closer to the reality of the situation and the consequential losses borne by the injured party.

Total loss

Maslamani explained that the second benefit is that if the base of the vehicle is damaged, whether it is replaceable or not, or fixed parts of the vehicle such as the columns are damaged, and these parts need to be cut, stretched or welded as a result of the accident. The vehicle is considered a case of total loss, and the company is obligated to compensate according to the market value of the vehicle at the time of the accident for the injured "third party" or the value of the insurance amount in the insured's contract in the case of comprehensive insurance, pointing out that the issue of "write-off" and direct and smooth repair were among the points of contention between the insurance companies And previous dealers.

injury

Regarding the third benefit, Maslamani stated that in the event of physical injury, the company is obligated to fulfill - in addition to the maximum cases of death and disability as a percentage of the ceiling of the 200,000 dirhams - of all treatment expenses towards the provider of any medical services, including all government and private hospitals, pharmacies and any treatments Required by the case.

He added that in the event that the treatment does not end, the insurance company shall issue a letter of commitment to be directed to the treating party, indicating that under this benefit, the company will issue a letter of undertaking to cover medical expenses to the third party directly.

dispute

As for the fourth benefit in the amendments, whether for comprehensive insurance or for civil liability / a third party, Maslamani explained that it was that when there was any dispute between the company and the affected party (the insured or the injured party) regarding the value of the damages, the amount of compensation, or the determination of the value. To determine the market value of the damaged vehicle, so the Authority shall appoint a damage inspection and assessment expert who is specialized in this field, licensed and registered with the Authority, to determine the value of these damages, the amount of compensation, or the market value for the injured person at the expense of the company for the purposes of settling the dispute.

He pointed out that in the past and before the amendments were made, all of these issues were the subject of disagreements and disputes that directly affect the level of service compared to the client's expectations with the terms of the insurance contract.

Vehicle repair

Maslamani said that according to the amendments and if the insured wanted to repair his vehicle at the agency’s workshop after the first three years of the vehicle’s running on the road, according to the amendments, the insurance company may respond to the request and set the appropriate premium, not exceeding the maximum tariff, indicating that during the previous period it was A large part of companies refuse to repair cars within the agency after two or three years of use.

He added that in the event that the injured third party chooses the monetary compensation, no allowance is calculated for the loss of the benefit, but if the repair of the damaged vehicle is chosen in the repair shop as the case requires, then the period of the lost benefit allowance is calculated in days from the date of delivery of the damaged vehicle and the accident report and ownership of the company.

Interest guarantee

Maslamani stressed that the Insurance Authority is constantly working to ensure the interest of customers and insurance companies alike, within the framework of the growth of the sector that plays an important role in the national economy, pointing out that the Insurance Association is in constant contact with the various committees and the Authority in the framework of joint work in a manner that guarantees the rights of all parties Involved in the vehicle insurance sector.

the prices

A member of the Supreme Technical Committee, Chairman of the Automobile Committee of the Emirates Insurance Association, Essam Maslamani, ruled out that the new amendments to the insurance policy would affect the rise in car insurance prices in the local market, but rather help improve customer service and their expectations from the role of insurance to a higher level. The market is currently witnessing a period of competition between companies over prices.

• In the event that the affected "third party" chooses the monetary compensation, no allowance shall be taken for the loss of the benefit.

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