UAE: Central bank cancels 50% discount on motor insurance premiums

Source: Middle East Insurance Review | Sep 2023

The Central Bank of the UAE (CBUAE) has decided to cancel a provision that allows a discount of 50% on the minimum insurance premium when an individual with an accident-free record buys a new motor insurance policy or renews an existing plan.

The decision to cancel the discount is effective immediately and is binding on all insurance companies and their agents and brokers.

CBUAE said that the tariffs established by the authorities constitute the minimum and maximum limits to be adhered to. Insurance companies have the flexibility to determine their pricing, confined within the maximum and minimum limits with other permitted discounts, considering their experience with the customer or any technical or actuarial considerations, provided that such pricing would not jeopardise the financial position of the insurance company or lead to the loss of the insureds’ rights. The company remains responsible for its decisions in accordance with the applicable regulations and instructions. M

Comment | Print

Name*

Email*

Comment*

Code Verification*

Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.