UAE: Auto claims jump by nearly 45% in recent months
Source: Middle East Insurance Review | Sep 2021
Motor insurance claims have risen over the last few months, increasing by almost 45% compared to during the worst months of COVID-19, according to a study by RSA Insurance and RoadSafetyUAE.
Although some COVID-19 restrictions are still in place and domestic activity has not recovered to 2019 levels, claims rates have already reached pre-pandemic levels. More vehicles are on the roads as people have started returning to offices. This upward trend in claims is expected to continue in the coming months.
With the increase in claims, it is likely that motor insurance prices will begin to increase over the next few months.
Previously, in line with the decline in the number of road accidents during COVID-19 lockdown periods, motor insurance claims had dropped by 60%.
“With many countries still imposing strict restrictions on travel, it is likely that this year, many UAE residents will remain in the country, which may amplify the accident rates on the road,” said RSA UAE head of claims Sunita Pais.
The study said claims due to the driver’s fault made up about 40% of the claims in recent months. These include speeding and not maintaining a sufficient distance between vehicles. According to the report, the main causes of accidents and claims are preventable. M