UAE: Regulator and industry to amend motor policies
Source: Middle East Insurance Review | May 2015
The Insurance Authority (IA), the Emirates Insurance Association (EIA) and representatives of local and foreign insurance companies operating in the UAE are working on amending the standard motor policies for loss and damage and third-party liability covers, recently holding a dialogue session in Abu Dhabi to this end.
Motor premiums grew by 16.7% to reach an estimated value to AED5.6 billion (US$1.5 billion) last year, constituting 22.6% of total general insurance premiums, Mr Ebrahim Obaid Al Zaabi, Director General of the IA said. Local insurers commanded 70% of the motor market, according to local media reports citing Mr Al Zaabi.
Mr Al Zaabi said there is therefore the need to revise the standard motor policies for both types of cover that have been in use since 1987, to clear up uncertainty in some of the provisions and to take account the development of the insurance sector and the national economy. Another objective is to reduce the number of motor insurance complaints, which account for more than 90% of total number of grouses received by the IA.
He said that the IA had met the EIA to discuss technical points of the revised draft policies. The IA is keen to have the views of the insurance industry to arrive at the best possible outcome that would meet the interests of all parties, which would also be in accordance with established international standards.
AED1 = US$0.27