The Insurance Authority stated that the property risk insurance policy for warehouses, buildings and establishments provides insurance coverage for in-kind and personal property of all kinds, in the event that it is affected by rain, torrents and bad weather, including buildings, warehouses, installations, decorations and improvements to real estate, furniture, equipment, devices and machinery, confirming that "This insurance cover is mainly related to the consensual agreement between the two parties to the policy."
And she made clear - in an official message to the Federal National Council - that the insurance policy on buildings and facilities may exclude "limited" damage from compensation, the most important of which are: explosions, wars, checks and bonds, and radioactive contamination cases.
In detail, the Minister of Economy, Chairman of the Authority’s Board of Directors, Engineer Sultan bin Saeed Al-Mansoori, addressed an official letter to the Federal National Council, on procedures and mechanisms for compensating insurance companies for rain and torrential damages on vehicles, installations, buildings, and warehouses, in response to a parliamentary question by the First Vice-President of the Council, Hamad Ahmed Rahoumi, for the body.
The letter, of which "Emirates Today" obtained a copy, included an explanatory note on the provisions of the standardization of vehicle insurance policies and coverage of other documents in the event of weather and rain conditions, and the proactive steps taken by the authority in the context of awareness and definition of the provisions of the system of standardization of vehicles insurance policies.
The letter stated that the system, issued pursuant to the Authority’s Board of Directors Decision No. (25) of 2016, specified two types of insurance policies: The first: the insurance policy is a civil liability, known as «against others». Second: The insurance policy for loss and damage. Together, they formed what is known as a “comprehensive insurance policy,” explaining that the unified policy of vehicles insured against the risk of loss and damage excludes accidents that occur, arise, produce, or (directly or indirectly) related to natural disasters, such as floods, hurricanes, hurricanes, volcanic eruptions, earthquakes, and earthquakes. .
The document defined the natural disaster as every general phenomenon that arises from nature, and leads to comprehensive and extensive damage, and a decision is issued in respect of it by the competent authority of the state, stressing that the rains that may lead to damage to vehicles insured against the risk of loss and damage are not considered cases excluded from insurance coverage, except If a decision is issued by the state’s competent authority, it is considered to constitute a flood. However, if no decision is issued, the insurance company is responsible for the compensation.
Regarding the coverage of insurance policies for establishments, buildings and warehouses regarding the damages caused by the rains, the authority indicated that the insurance policy is a consensual contract between the insurer (the insurance company) and the insured. The parties to this contract may agree to specify the dangers for which insurance is required, and to determine the property for which insurance is required, especially that each insurance policy has insurance benefits, coverage, exceptions, requirements and provisions of its own, stressing that the insurance policy against property risks, relating to warehouses, buildings and installations, provides insurance cover for in-kind property The personality of all kinds, including buildings, warehouses, fixtures, decorations, improvements to real estate, furniture, equipment, devices, machinery, and other contents covered by the insurance contract (insurance policy).
The letter indicated that these documents usually specify the risks covered. Including, for example, rain, fire, water leakage and interruption of work.
Speech
The Insurance Authority has sent an official letter to insurance companies and professions related to insurance, operating in the country, notifying them that the Vehicle Insurance Standardization System No. (25) of 2016 defined natural disasters as “every general phenomenon that arises from nature, such as floods, hurricanes, hurricanes, or eruptions. Volcanoes, earthquakes, or earthquakes. And lead to comprehensive and extensive damage. A decision shall be issued in respect thereof by the competent authority in the state, confirming that the insurance company is obligated to compensate for the damages caused to the injured and his property as soon as they occur. A natural disaster situation may not be invoked, unless a decision has been issued in this regard by the competent authority in the state.
Specific exceptions
The property risk insurance policy for warehouses, buildings and installations contains specific exceptions that can be added, such as fires, explosions, electrical failure of the equipment itself, floods, work interruptions, wars, and other exceptions agreed between the parties to the insurance contract.
She added that this type of document may exclude compensation for certain funds, such as checks, bonds and accounting system records, along with radioactive contamination.
"Catastrophe" is every general phenomenon that arises from nature and leads to harm, and a decision is issued by the state.
8 insurance awareness measures
The Insurance Authority spoke about the pre-emptive steps it had taken in the context of raising awareness and introducing the provisions of the vehicle insurance policy standardization system, compensation for vehicle damage in the event of rain and torrential rain, and defining the concept of natural disaster.
I summarized it in eight procedures: The first: amending the system for unifying vehicle insurance policies issued in 2016, and setting a specific definition of natural disaster, as it stipulated the issuance of a decision in this regard from the competent authority in the state. The second: To provide clarifications to the competent authorities in the state regarding compensation for vehicle damage in the event of rain and bad weather conditions. And the third: spreading awareness messages through the authority's social media channels to the public that caution should be exercised when driving vehicles on the roads in case of weather fluctuations.
The fourth: organizing awareness workshops on the system for unifying vehicle insurance policies, and clarifying the concept of natural disaster. And fifth: issuing legal circulars and flashes on an ongoing basis to the insurance sector and the public, dealing with the concept of natural disaster. And sixth: the production of animated awareness films (in audio and video with translation and sign language), dealing with important topics in the insurance sector in general, vehicle insurance and the concept of natural disaster in particular. And the seventh: Preparing educational "brochures" about the system of unifying the insurance policies for vehicles and the benefits found in the system. Eighth: Responding to print and audio media questions and inquiries regarding the system of unifying vehicle insurance policies, and compensation for damages in the event of rain and torrential rain.