UAE: Several changes afoot in motor insurance
Source: Middle East Insurance Review | Mar 2015
The Emirates Insurance Association (EIA) said that the UAE Insurance Authority (IA) will approve a standard uniform motor insurance policy (theft, own damage, and third party liability) by June this year. The new policy document is among several measures to be introduced in the motor insurance segment, aimed at increasing protection for policyholders, insurers and other stakeholders.
EIA has drafted a number of recommendations to be submitted to the IA concerning motor insurance, said media reports. The recommendations include requiring insurers to issue a record of incidents to the insured on request. It has also proposes that insurers be required to obtain this track record before they accept business from a new customer.
The EIA has also commissioned a study of motor insurance pricing, given the technical results reported by insurers for the past four years, in order to ensure that premium rates are commensurate with costs including compensation, operating costs and administrative expenses.
The association has proposed to the Roads and Transport Authority the need to make it mandatory for insurers to provide data on motor vehicle accidents. Such a database would help insurers reward good drivers and alert them to reckless drivers or irregularities.
EIA has also submitted its observations and recommendations to the government on the modernisation of the Traffic Act and related regulations, and has requested that it be represented on the committee drafting the new legislation.
The Association also called for the joint committee formed with the IA to be activated to discuss insurance issues and topics that contribute to the development of the industry, recommending that it meets regularly and follows updates on the latest compulsory motor insurance regulations.