UAE: Insurers rebut complaints about refusal to renew comprehensive motor policies
Source: Middle East Insurance Review | Dec 2019
The Emirates Insurance Association (EIA) has said that it is natural for insurers to hedge against motor policyholders who cause more than one accident in a year or a number of accidents over several years.
The statement was in response to several customer complaints that insurers refuse to renew comprehensive motor policies on the pretext that the policyholders caused traffic accidents, reported UAE Today.
Mr Fareed Lutfi, secretary general of the EIA said, “Most insurance companies do not oppose the renewal of a policy for a driver who caused one accident over two or three years.”
However, some policyholders cause more than one accident during a year, or accidents over several years. It is thus normal then for insurers to hedge against this category of customers, he said.
Mr Saeed Al Mehair, chairman of United Gulf Insurance Brokerage, said insurers have the right to convert a motor policy from comprehensive coverage to third-party liability cover only, in cases in which the driver caused more than one accident. This is a normal measure taken by insurers, he added.
He pointed out that most insurers do not pay attention to minor motor accidents unless these are repeated more than once and over a short period of time. M