UAE: Belt-tightening drivers shun comprehensive motor insurance
Source: Middle East Insurance Review | Apr 2021
The differences in pricing between comprehensive motor insurance and motor third party liability (MTPL) insurance have narrowed significantly over the past year, according to the Emirates Insurance Association (EIA).
In 2020, the price decline in MTPL insurance business ranged between 20% and 50% on average, compared to between 15% and 30% for comprehensive motor insurance, compared to their levels in 2019, reported Emirates Today.
The price declines mean that the customer may just pay a small additional amount in order to obtain the comprehensive cover. Many though are still not inclined to buy comprehensive motor insurance policies.
Changes in behaviour
EIA motor insurance technical committee chairman Issam Mouslimani said that some changes in the behaviour of vehicle owners regarding motor insurance have surfaced as a consequence of the impact of the COVID-19 pandemic. For instance, a larger proportion is satisfied with just having MTPL cover compared to pre-pandemic levels.
Mr Mouslimani added that the decrease in the number of driving hours prompted some drivers to rethink their priorities, such as cutting down on expenses. Those who continue to buy comprehensive motor cover are looking more for lower prices.
Mr Mouslimani also said that it has been observed that there are some delays in renewing motor insurance policies during the pandemic. M