Qatar: Insurers generally exempt from floodwater claims
Source: Middle East Insurance Review | Jan 2017
Insurers are generally exempt from compensating motorists whose vehicles are damaged by flood water such as in the recent widespread flooding in the country, according to a circular sent by the Qatar Central Bank (QCB) to insurance companies.
The exemption applies unless flood water cover is expressly provided for in the insurance policy, and the rain did not lead to traffic accidents, reported Al Raya citing a copy of the circular.
The first rainfall of the winter caused widespread flooding in Qatar late November, with many major roads under water.
Rules introduced by QCB in July on motor insurance set out the circumstances for settling compensation claims for the material damage sustained by vehicles due to traffic accidents. However, they do not provide for cover for damage caused by rain and floods even if the policy is a comprehensive motor insurance policy.
QCB had instructed all insurers to display its circular regarding “unified standards for insurance of vehicles and the rules governing compensation claims for the material damages sustained by vehicles due to traffic accidents” at their headquarters and branches in a prominent place for the benefit of customers.
The action taken by the central bank was to make motor insurance rules clearer for all stakeholders, reduce room for dispute and facilitate claims processing.