UAE: 2 in 10 cars in Dubai are underinsured - survey
Source: Middle East Insurance Review | Apr 2016
About 20% of cars in Dubai are under-insured, according to a study by QIC Insured and MoveSouq.com, a home services comparison website. The survey covered over 45,000 cars.
In a statement, QIC Insured said that under-insured cars are those covered only by a third-party liability policy, despite being eligible for comprehensive insurance.
Mr Frederik Bisbjerg, Executive Vice President MENA Retail, QIC Insured, explained that it is important for consumers to understand the two different types of insurance in the market to know how to properly insure their vehicle: comprehensive insurance which covers for damages to the driver, passenger and vehicle resulting from collisions and other causes, regardless of who is at fault, and third-party liability insurance which provides minimum coverage allowed by law and will only pay to repair the other person’s car or cover his or her medical bills.
The survey highlighted the Toyota Land Cruiser and the Nissan Patrol as the most frequently under-insured cars, at 49% and 58%, respectively. Explaining this phenomenon, Mr Bisbjerg said: “Drivers who own larger, high-end cars tend to make riskier insurance choices. They often think, ‘I won’t cause an accident...I’d rather save on the insurance and just get third-party’. This line of thinking puts the vehicle owner at risk, since they will be on the hook for fixing (or replacing) their own car or paying for any outstanding car loans if they cause an accident.”
QIC Insured is Qatar Insurance Company’s new online platform launched in January.