Unified system for motor insurance approved

Abu Dhabi: The Insurance Authority has approved a unified system for motor insurance policies, it was announced on Wednesday.

The new system increases insurance coverage related to any claim arising from an accident that causes damage to property from Dh250,000 to Dh2 million.

The system was announced on Wednesday by Sultan Bin Saeed Al Mansouri. Minister of Economy, and Chairman of the Insurance Authority, in a statement issued by WAM.

“Approving the new system represents a paradigm shift in the development of the organisational foundations and technical regulations of the UAE’s insurance market and vehicle insurance sector,” Al Mansouri said.

The new rule includes two documents. The first is a third party vehicle insurance policy and the second is a policy for insuring vehicle against loss or write-off.

The current system has been in effect for the past 27 years during which two models of insurance policies were issued since 1987.

According to the new system, vehicle insurance has been categorised as per the insurance type through two separate documents.

The first is compulsory and related to third party liability in compliance with the traffic laws.

The second is related to loss or written-off vehicles. It is an optional policy for motorists who want to insure their vehicle instead of getting comprehensive insurance in one policy document covering the two types of insurance.

The new system aims to achieve the highest standards of transparency in line with the demands of the local market and national economy, the authority said.

A new provision regarding compensation stipulates that motorists involved in accidents have the right to obtain a daily amount of Dh300 for 10 days to rent a vehicle.

Regarding amendments to the unified policy for insurance against loss and written off vehicles, the new policy includes additional deductible amount decided by the insurance company, which is a maximum of 10 per cent of the compensation value if the driver is under 25 years of age, a maximum of 15 per cent of the compensation value for public vehicles and taxis, and a maximum of 20 per cent for sports and modified vehicles.

In case of the death of one member of the insured family, or the driver of a rented vehicle, or public vehicle, or a driving-learning vehicle, the insurance company is liable to pay Dh200,000 for each dead person.

In case of injury, the liability of the insurance company will be paid according to the extent of the disability.

The insurance company is obliged to repair the damaged vehicle and pay the market value of the vehicle if the vehicle repair cost exceeds 50 per cent of the car’s market value, provided the insurance company’s liability does not exceed Dh2 million.

Husbands, wives, children and parents will be included in the insurance coverage. A passenger is defined as a person who was inside the vehicle or getting in or off the vehicle. The maximum limit of insurance company liability to any claim arising from one accident is the value determined by a court.

Mandatory health insurance set for Dubai’s small companies

DUBAI // Health insurance cover will be linked to residency visas for small companies in Dubai within weeks, Dubai Health Authority has said.

Companies with fewer than 100 employees, of which there are about 135,000 in the emirate, are in the final group of employers to have to adopt mandatory health insurance for employees, after the deadline previously passed for larger companies.

Companies should now present their employees’ health insurance certificates along with the other required documents when renewing visas, said Dr Haidar Saeed Al Yousuf, director of health funding at DHA, to The National’s Arabic-language sister paper, Aletihad.

Dr Al Yousuf added that DHA will be launching a healthy behaviour incentive programme that offers incentives to insured people who follow a healthy lifestyle that reduces their risk of diseases.

New mechanisms and systems have also been developed, in particular to prevent health insurance abuse. These will be added to the emirate’s health insurance system and will be implemented ahead of fines for violations beginning next year.

DHA intends to implement a system that links payment to quality, with a view to prevent health insurance fraud and abuse.

Currently, 85 per cent of people in Dubai have health insurance.

So far, 99 per cent of employees at the 300 large companies and the 3,000 to 4,000 middle-sized companies in the emirate benefit from health coverage.

DHA will launch an intensive awareness-raising campaign in mid-October aimed at promoting the health insurance system. It will cover local government authorities, public places and some private-sector companies.