The UAE to Change the Insurance Climate with New Vehicle Insurance Rule￼
The United Arab Emirates government has declared effective a new rule “Vehicle Insurance Rule” that requires all foreign vehicles to be insured before entry into its territory. This vehicle insurance rule, effective from June 26, 2023, applies to all vehicles seeking entry into the UAE by land from the Al Ghuwaifat Port Station.
What is the New Vehicle Insurance Rule
The Federal Authority for Identity, Citizenship, Customs, and Port Security has announced a new insurance policy rule effective on all foreign vehicles seeking entry to the UAE. Under the new policy, these vehicles must purchase an insurance plan before reaching the Al Ghuwaifat Port Station. Travelers are to provide some proof of the purchase or existence of an insurance plan upon arrival at the port station.
Why the Need for a Novel Vehicle Insurance Rule
It just so happened that driving without insurance within the Emirates attracts a fine of AED 500, traffic demerits, and even a seven-day vehicle retention. As such, all vehicle owners or drivers must have vehicle insurance, even if it is third-party insurance. However, it was usually the case that only a few foreign cars seeking entry into the UAE had vehicle insurance to accompany their vehicle.
The country saw the need for a novel insurance policy to make transit faster and easier for travelers by reducing stress and administrative ties such as paperwork. Additionally, the Federal Authority for Identity, Citizenship, Customs, and Port Security is also interested in making traveling a lot more excellent by providing efficient procedures at the port, one of which is an intelligent insurance service. Interestingly, this service can be accessed and purchased online, meaning that a traveler need not leave their vehicles to go in search of an insurance provider upon arrival at the port.
What are the Implications of a New Vehicle Insurance Rule
As expected, the new vehicle insurance policy has led to a slight price hike. However, this perk is not without its benefits. For one, the policy protects against liability for property in an accident by providing replacement in the event of unforeseen destruction. What’s more, as a cherry on top, the UAE vehicle insurance rules provide that complete replacement be made to car owners in the event of an accident, whether they are responsible for such destruction or not.
Additionally, the policy provides for coverage of family members and relatives. Notably, this family member’s coverage benefit is an extra perk in insurance that was absent before the insurance policy. Now, car accidents involving close family members and relatives are also covered under the policy.
The policy also provides a maximum premium on all vehicle insurance policies, and it gives a 10% discount for persons who have not been involved in an accident in the past year, a 15% discount for two years, and a 20% discount for the last 20 years. Indeed, it would seem that the policy was well thought out for the benefit of members of the public and foreigners alike.
The new vehicle insurance policy is not the first time the UAE has implemented it. Over the years, the country has continuously updated its vehicle insurance rules to protect the health and property of its citizens – and now – foreigners. Given its history with such rules and adequate implementation, there is no doubt that the new vehicle insurance regulations will be rightly implemented.
Last Updated on 2 days by newseditor