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Motor Insurance

Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies
IA-BOD-RES 25/2016 Effective from 22/9/2016
_{This Decision has been amended by the Insurance Authority Board of Directors' Decision No. (42) of 2017 and the Insurance Authority Board of Directors' Resolution No. (26) of 2020 respectively. You are viewing the latest version. Please find the PDF of the first version on the table below.}
version 2 (consolidated as of 18/01/2021) pdf download
version 1 (effective from 22/09/2016) pdf download

The Chairman of the Board of Directors of the Insurance Authority,
1. - Having perused Federal Law No. (6) of 2007 Concerning the Establishment of the Insurance Authority and Organization of insurance Operations, as amended, and its Executive Regulations;
2. - Ministerial Resolution No. (54) of 1987 Concerning Unified Motor Vehicle Insurance Policies, as amended; and
3. - At the approval of the Board of Directors of the Insurance Authority and the proposal of the Director General of the Authority;
Has resolved as follows:

Article (1) Definitions

The following terms and phrases shall have the meanings as stated beside them unless the context provides otherwise:

State:	The United Arab Emirates.
Authority:	The Insurance Authority, established by virtue of Federal Law No. (6) of 2007 Concerning the Establishment of the Insurance Authority and Organization of Insurance Operations, as amended.
Board:	The Insurance Authority Board of Directors.
Company:	The insurance company incorporated in the State, or foreign branch of and insurance company, that is licensed to carry out insurance operations in the State either through a branch or an insurance agent.
Insured:	A natural or corporate person that has applied for insurance, entered into an insurance contract with the company, and paid or has agreed to pay the premium.
Motor Vehicle Driver:	The insured or any person who drives the motor vehicle with the permission or by order of the insured, provided that they are licensed to drive the motor vehicle category according to the Traffic Laws and other laws and regulations, and that the granted license has not been cancelled by court's order or by virtue of the Traffic Laws and its Executive Regulations. This definition includes the driver whose driving license has expired if they managed to renew it within thirty days from the date of accident.

Article (2)
1. The company shall issue a motor vehicle insurance policy against third party liability and motor vehicle insurance policy against loss and damage according to the two forms attached hereto. These forms may not be amended or altered unless such amendment is in favor of the insured or beneficiary. The two forms attached hereto shall constitute an integral part thereof.
2. The Takaful insurance company shall comply with the provisions of the two policies subject to Takaful insurance terminology, as the case may require.

Article (3)
The company shall comply with the international agreements ratified by the State, including the "Unified Insurance Card Treaty on Motor Vehicles Across Arab Countries (the Orange Card)". Extension of a third party liability insurance policy to Arab countries may only be accepted under the Orange Card, and this applies to all non-UAE motor vehicles coming into or crossing in the State.

Article (4)
1. The company should issue a third party liability insurance policy on all motor vehicles licensed in the State when it is so requested by the related parties.
2. The company may not refuse granting insurance against loss and damage, refuse to renew an insurance policy, or discriminate between the insured in relation to insurance rates and conditions and benefits of insurance coverage on the grounds of age, sex, residence, or lapse of less than one year after being granted the driving license, as long as the insurance applicant holds a valid driving license issued by the competent authorities, unless for technical or actuarial reasons or according to its previous experience with the insured.
3. If the company decides to refuse granting insurance against loss or damage of a motor vehicle that meets the applicable conditions of the Traffic Law, it shall submit to the Authority the technical or actuarial reasons or previous experience with the applicant, on request.

Article (5)
1. When issuing the insurance policies promulgated by this Regulation and dealing with customers, the company shall conduct its business according to the principles of insurance, especially the principles of utmost good faith, disclosure, transparency and provision of clear and accurate information to the insurance applicants, insured and beneficiaries.
2. The company shall adhere to the Board of Directors' Decision No. (3) of 2010 Instructions Concerning the Code of Conduct and Ethics to be Observed by Insurance Companies Operating in the State, as amended.

Article (6)
When receiving any claim, the company shall:
1. Give the claimant a notice in writing of the receipt of the claim. In case of any missing items in the required documents, the company shall inform the claimant in writing within three days from receiving the claim about the documents required for completion. On completion, the company shall notify the claimant thereof.
2. Notify the claimant in writing of the acceptance of the claim, whether by reparation of the vehicle or payment of a specific amount of money.
3. If the claim is accepted and compensation is a financial amount, the company shall set forth the approach and mechanism in which the amount of compensation has been calculated.
4. The claims amounts shall be fairly settled, without any bargaining, within a period not exceeding fifteen days from the date of receipt of completed claim documents.
5. If the claim is rejected, the company shall inform the claimant of the reasons of the rejection in writing along with a copy of the documents supporting the company's decision.

Article (7)
In case of total loss of the motor vehicle, the company shall:
1. Promptly pay the amount of compensation, as the case may be, according to the relevant policy within a period not exceeding fifteen days from the date of completion of the claim documents.
2. If the company delays settlement of the claim for more than fifteen days from the date of receipt of the completed claim documents without giving convincing justifications to the injured party and the Authority, the company shall compensate the beneficiary of the coverage stated in the insurance policy for any costs suffered by them as a result of deprivation from the damaged motor vehicle.
3. Pay compensation for the value of the motor vehicle according to the agreement between the company and the insured in the insurance policy against loss and damage.
4. Compensation will be made on the basis of calculation of the market value of the motor vehicle for the damage covered by the motor vehicle insurance policy against third party liability, by an expert or by setting the average value of three proposals from licensed motor vehicle showrooms in the State.

Article (8)
The company shall comply with the Board of Directors' decision concerning prices, rates and tariffs.

Article (9)
The Ministerial Resolution No. (54) of 1987 Concerning Unified Motor Vehicles Insurance Policies, as amended, shall be deemed repeal including any decisions or provisions to the contrary to the provisions hereof.

Article (10)
The Director General shall issue the necessary decisions and circulars for enforcement of this Regulation.

Article (11)
This Decision shall be published in the Official Gazette and enter into effect as of 01.01.2017, provided that the insurance policies issued before this date shall remain in force until their expiration date.

The Unified Motor Vehicle Insurance Policy Against Loss and Damage issued pursuant to the Regulation of Unified Motor Vehicle Insurance Policies according to Insurance Authority Board of Directors' Decision No. (25) of 2016
IA-BOD-RES 25/2016 Effective from 22/9/2016

_{This Policy has been amended by the Insurance Authority Board of Directors' Decision No. (42) of 2017 and the Insurance Authority Board of Directors' Resolution No. (26) of 2020 respectively. You are viewing the latest version. Please find the PDF of the first version on the table below.}
version 2 (consolidated as of 18/01/2021) pdf download
version 1 (effective from 22/09/2016) pdf download

Whereas the Insured has applied to ……………….. Company (hereinafter referred to as the "Company") for the insurance set herein below, and has agreed that the application is considered as the basis for and integral part of this Policy, and has paid or agreed to pay the applicable premium, and the Company has accepted and represented to pay compensation to the Insured in case of any damage to the Motor Vehicle subject to this insurance, whether it emerges from the use or parking of the Motor Vehicle in the UAE during the insurance period, whether the Insured caused the accident or was an injured party;
Therefore, this Policy was entered into to cover the damages that befall on the Insured Motor Vehicle in the UAE during the insurance period according to the terms, conditions and exclusions in or appended to this Policy.

The Unified Motor Vehicle Insurance Policy Against Third Party Liability issued pursuant to the Regulation of Unifying Motor Vehicle Insurance Policies according to Insurance Authority Board of Directors' Decision No. (25) of 2016
IA-BOD-RES 25/2016 Effective from 22/9/2016

_{This Policy has been amended by the Insurance Authority Board of Directors' Decision No. (42) of 2017 and the Insurance Authority Board of Directors' Resolution No. (26) of 2020 respectively. You are viewing the latest version. Please find the PDF of the first version on the table below.}
version 2 (consolidated as of 18/01/2021) pdf download
version 1 (effective from 22/09/2016) pdf download

Whereas the Insured has applied to ……………….. Company (hereinafter referred to as the "Company") for the insurance set herein below, and has agreed that the application is considered as the basis for and integral part of this Policy, and has paid or agreed to pay the applicable premium, and the Company has accepted and represented to pay compensation to a Third Party/ Injured Party in case of any accident subject to this insurance, whether it emerges from the use or parking of the Motor Vehicle in the UAE during the insurance period;
Therefore, this Policy was entered into to cover liability towards a Third Party / Injured Party caused by the Insured Motor Vehicle to the Third Party / Injured Party according to the terms, conditions and exclusions in or appended to this Policy for the amounts the Insured or the Motor Vehicle Driver must pay against:
- Bodily Injury to a Third Party, either inside or outside the Motor Vehicle.
- Property Damages to a Third Party.

Definitions:

The following terms and phrases shall have the meanings indicated beside each of them unless the context provided otherwise:

*Policy:*	The Unified Motor Vehicle Insurance Policy Against Third Party Liability whereby the Company undertakes to compensate the injured third party, on the occurrence of the damage hereby covered, and any endorsement to it, which governs the relationship between the parties, in return of the premium paid by the Insured.
*Company (Insurer):*	The insurance company that is licensed to operate inside the State according to the laws and regulations issued in the State and accepts to insure the Motor Vehicle and has issued the Policy.
*Insured:*	A natural or corporate person that has applied for insurance, entered into an insurance contract with the Company, and paid or has agreed to pay the premium.
*Motor Vehicle Driver :*	The insured or any person who drives the Motor Vehicle by the permission or order of the Insured, provided that they are licensed to drive according to the Motor Vehicle category pursuant to the Traffic Laws and other laws and regulations, and that the granted license has not been cancelled by a court's order or by virtue of the Traffic Laws and its Executive Regulations. This definition includes the driver whose driving license has expired if they manage to renew it within thirty days from the date of accident.
*Injured Third Party:*	1. Any natural or corporate person, or their properties,which have suffered an injury or damage as a result ofthe accident, excluding the Insured, the Motor VehicleDriver and passengers employed by the Insured if theyare injured during and because of work. 2. The family members of the Insured and the MotorVehicle Driver (spouse, parents and children) whocaused the accident. 3. The driver of a Motor Vehicle allocated for rent,public transportation or a vehicle used to teach driving.
*Insurance Application:*	The application that includes the details of the Insured, the details of the Motor Vehicle and the type of required coverage, and is filled in by or with the knowledge of the Insured electronically or in writing.
*Premium:*	The consideration that is paid or undertaken to be paid by the Insured in return for insurance coverage.
*Accident:*	Any incident that causes harm to a Third Party / Injured Party as a result of use, explosion, combustion, scattering, drop of things from, movement, spontaneous movement or parking of the Motor Vehicle.
*Bodily Injury:*	Death and/or physical injuries to a Third Party, including permanent disability or temporary total or partial disability.
*Property Damage:*	Damage to a Third Party's property.
*Motor Vehicle:*	A mechanical machine, motorcycle or any other device that works through a mechanical force, and its specifications are described in the Policy.
*Trailer:*	A vehicle designed to be pulled behind a Motor Vehicle, truck or towing vehicle, including lightweight trailer (camper trailer), the weight of which does not exceed 750kg and it so licensed according to the applicable Traffic Laws.
*Semi-Trailer:*	A trailer without a front axle and is towed in such a way that a large part of its weight and tonnage is carried by the towing vehicle or the mechanical vehicle (locomotive).
*Natural Disaster:*	Any general phenomenon that arises from nature such as floods, tornados, hurricanes, volcanoes, earthquakes and quakes, and leads to extensive and widespread damage, and in respect of which a decision is issued by the concerned authority in the State.
*Rider:*	Any special agreement between the parties in supplement to the basic coverages under this Policy.
*Personal Accidents Endorsement:*	An additional insurance coverage against personal accidents to the Motor Vehicle Driver, the Insured and the passengers excluded from the basic coverage in return for an additional premium.
*Third Party Liability:*	The liability for injuries and damages arising from the use of the Insured Motor Vehicle to a Third Party / Injured Party.
*Road:*	Every road open and available to public without need to get special permission, and every place that is made available for the crossing of motor vehicles, and is made available to the public by a permission or license from a concerned authority or otherwise, for or without consideration according to the definition mentioned in the applicable Traffic Laws.
**Depreciation Percentage:**	The percentage payable by the injured party on the occurrence of an accident, and who requests the replacement of new parts in lieu of the used parts in case of partial loss according to the schedules of depreciation.

Definitions

The following terms and phrases shall have the meanings indicated beside each of them unless the context provides otherwise:

Policy:	The Unified Motor Vehicle Insurance Policy against Loss and Damage and any rider to it, which governs the relationship between the Insured and the Company, and whereby the Company undertakes to compensate the Insured, on the occurrence of the damage hereby covered, in return of the premium paid by the Insured.
Company (Insurer):	The insurance company that is licensed to operate inside the State according to the laws and regulations issued in the State and accepts to insure the motor vehicle and has issued the Policy.
Insured:	A natural or corporate person that has applied for insurance, entered into an insurance contract with the Company, and paid or has agreed to pay the premium.
Motor Vehicle Driver (Licensed Driver):	The insured or any person who drives the Motor Vehicle by the permission or order of the Insured, provided that they are licensed to drive according to the Motor Vehicle category pursuant to the Traffic Laws and other laws and regulations, and that the granted license has not been cancelled by a court's order or by virtue of the Traffic Laws and its Executive Regulations. This definition includes the driver whose driving license has expired if they manage to renew it within thirty days from the date of accident.
Motor Vehicle:	A mechanical machine, motorcycle or any other device that works through a mechanical force, and its specifications are described in the Policy.
Insurance Application:	The application that includes the details of the Insured, the details of the Motor Vehicle and the type of required coverage, and is filled in by or with the knowledge of the Insured electronically or in writing.
Rider:	Every special agreement between the parties in supplement to the basic coverages under this Policy.
Premium:	The consideration that is paid or undertaken to be paid by the Insured in return for insurance coverage.
Basic Deductible:	The amount paid by the Insured according to the Schedule of Deductibles attached to this Policy per accident.
Ancillary Deductible:	The amount paid by the Insured according to the Policy in addition to the Basic Deductible.
Natural Disaster:	Any general phenomenon that arises from nature such as floods, tornados, hurricanes, volcanoes, earthquakes and quakes, and leads to extensive and widespread damage, and in respect of which a decision is issued by the concerned authority in the country.
Flood:	An event that occurs within the concept of Natural Disasters.
Road:	Every road open and available to the public without need to get special permission, and every place that is made available for the crossing of motor vehicles, and is made available to the public by a permission or license from a concerned authority or otherwise, for or without consideration according to the definition mentioned in the applicable Traffic Laws.
Depreciation Percentage:	The percentage payable by the injured party on the occurrence of an accident, and who requests the replacement of new parts in lieu of the used parts in case of partial loss according to the schedules of depreciation.
Insurance Period:	The period of time of motor vehicle insurance up to the end of the thirteenth month from the commencement of the insurance.

Chapter One: General Conditions
1. The Policy and its schedules shall constitute one integral contract, and any Rider to this Policy shall constitute an integral part hereof, and every term or phrase to which a special meaning has been given in any part of the Policy or its schedules shall have the same meaning elsewhere, unless the context otherwise requires.
2. This Policy does not apply outside the State.
3. The Company may not assert to the Injured Third Party that it is not liable for compensation as a result of any argument that can be used against the Insured.
4. The Third Party / Injured Party may submit a claim to the Company for compensation for damages caused to them by the Insured Motor Vehicle.
5. a. In case of death of a family member of the Insured or the Motor Vehicle Driver, the Company's liability will be limited to an amount of AED 200,000 (Two Hundred Thousand Arab Emirates Dirhams) per person. In case of injury, the Insurer's liability will be further limited to the percentage of disability per person
  b. In case of death of the driver of a rental vehicle, public transport vehicle and a vehicle used to teach driving, the Company's liability will be limited to an amount of AED 200,000 (Two Hundred Thousand Arab Emirates Dirhams) per person. In case of injury, the Insurer's liability will be further limited to the percentage of disability per person.
6. Any notice or notification of an accident that is required by this Policy shall be served to the Company in writing by e-mail, facsimile or by hand delivery to the address designated in the Policy as soon as practically possible.
7. a. With respect to a fleet insurance policy or any Motor Vehicle insured under this Policy, the Company may not enter into any agreement that may reduce or prevent the coverage of its full Third Party Liability arising from death, bodily injuries or property damages covered under this Policy or reduce the limits of liability of the Company or reduce the coverage contemplated under this Policy, including depriving a claim for compensation for any reason not related to the accident such as age, gender, or the date of acquiring the driving license, or otherwise, or the agreement will be deemed void.
  b. However, new coverage not provided for in the Policy may be agreed upon or the limits of such liabilities and coverages may be increased under a separate policy or an additional rider.
8. The Company may, at its expense, assume the judicial and settlement proceedings to represent the Insured or the Motor Vehicle Driver through an attorney in any investigation or interrogation and before any court in any lawsuit or intervention in any phase of the lawsuit in relation to a claim or accident for which the Company may be held liable under this Policy, and which may give rise to the payment of compensation according to this Policy. The Company may settle or enter into a reconciliation for such claim. The Insured shall provide every possible cooperation with the Company by signing a power of attorney to the attorney or otherwise to the Company to initiate any proceedings.
9. Without prejudice to the rights emerging from Life insurance policies and personal accident insurance policies, and in case of the existence of several compulsory policies against Third Party Liability emerging from the use of the Motor Vehicle issued by more than one Company:
  1. Compensation shall be divided equally between Insurers in case of death and/or injuries. If the liability is shared (between the Insured and the Third Party / Injured Party) based on the degree of negligence, then the percentage of participation in the negligence shall be taken into account.
  2. Compensation for property damages shall be divided based on the percentage of the insured amount set out in each policy to total insured amounts in all policies, after the percentage of participation in the negligence is taken into account.
10. On the occurrence of an accident, the Company shall:
  1. Repair the damaged Motor Vehicle or any of its parts, accessories or spare parts and restore the Motor Vehicle to its pre-accident condition.
  2. Pay the market value of the damaged Motor Vehicle if the value of damages exceeds (50%) of the market value of the Motor Vehicle at the time of the accident, provided that the Company's liability does not exceed an amount of Two Million Arab Emirates Dirhams per accident according to Paragraph (c)of Clause (1) of Chapter Two: Obligations of the Insurance Company.
  3. Replace the damaged Motor Vehicle in case of total loss, for another Motor Vehicle with the same make, model, additions and pre-accident condition unless the Third Party / Injured Party requests that the Company pay them the amount in cash; in which case, the Company shall accept the Insured's request.
  4. The Company shall pay in cash to the Injured Party, upon their request, the amount of damages (loss or damage) of the damaged parts of the Motor Vehicle in whole or any of its parts, accessories or spare parts and including the charges for installation and replacement of lost or damaged parts at the time of the accident in order to restore the pre-accident condition of the Motor Vehicle.
11. The damaged parts of the Motor Vehicle, for which the first registration and use of which is less than one year, shall be replaced with new original parts with no deduction of a Depreciation Percentage for the Injured Party.
12. If it is agreed with the Injured Third Party to repair the damaged Motor Vehicle, the Insurance Company shall repair the damaged Motor Vehicle at the agency repair shops for the Motor Vehicle if it is in its first year of registration and use.
13. a) Upon the lapse of more than one year after registration and use, the Company shall repair the damaged Motor Vehicle at suitable repair shops for the type and year of manufacture of the vehicle and the damaged parts may be replaced by other than original parts of the same grade. The Company shall insure that repair works are carried out according to technical standards and that the work is warranted by the repair shops. The Company shall ensure that the Injured Third Party is able to have the Motor Vehicle checked by any approved Motor Vehicle examination agency in the State to make sure that the Motor Vehicle has been properly repaired in accordance with the technical licensing conditions for endurance and safety and any other condition without affecting the technical examination of the Motor Vehicle affected by the accident at the concerned official authorities. If it is found that the repairs are below required and recognized technical standards, the Company shall address the issue(s) until the Third Party's Motor Vehicle is professionally repaired as soon as practically possible.
  b) For the damaged motor vehicle, insured against loss and damage at an insurance company with the condition of repair within the Agency, the repair shall be carried out within the Agency's repair shops pursuant to this condition. The insurance company insuring the loss and damage has the right of recourse against the Third Party liability insurance company in accordance with the following reimbursements basis:
  1) The reimbursement for the motor vehicle that has passed more than one year from its first registration or its use and until the end of the second year shall be after deduction of 15% of the value of the final repair bill.
  2) The reimbursement for the motor vehicle that has passed more than two years from its first registration or its use and until the end of the third year shall be after deduction of 30% of the value of the final repair bill.
  3) In case more than three years have lapsed since the first registration or use of the motor vehicle, the company shall abide by repairing the damaged vehicle at suitable repair shops for the type and year of manufacture of the vehicle. The damaged parts shall be replaced with original parts of the same standard, provided that, if the agreement between the Loss and Damage Insurance Company and the insured has the condition that "repair shall be within the agency", this condition shall remain effective.
  4) The existing rights between companies prior to the implementation of this regulation shall be observed.
14. If the Injured Third Party requests that new parts are to be installed in lieu of the parts damaged during the accident, they have to bear the Depreciation Percentage set in Schedule (1) of the final value of the purchase invoice. In case of taxi vehicles, public transport vehicles and rental vehicles, the Depreciation Percentage set in Schedule (2) of the final value of the purchase invoice will be applied.
15. Neither depreciation may be deducted nor used parts be installed if the parts are within the list set out in Schedule (4) of this Policy.
16. The Injured Third Party may repair the damages that occur to the Motor Vehicle as a result of the accident, provided that the estimated repair costs do not exceed the value of repair agreed upon with the Company. The Company may require, if it wishes so, a proof that the Motor Vehicle repairs have been completed.
17. If the motor vehicle “chassis” whether can be replaced or irreplaceable is damaged or the durable parts, such as pillars are damaged and need cutting, tightening or welding as a result of the accident, the Motor Vehicle shall be considered a Total Loss and the Company shall make compensation according to the market value of the Motor Vehicle at the time of the accident.
18. If the Motor Vehicle is considered as total loss, and the Company compensates the Injured Third Party on that basis, the salvage will be deemed property of the Company. The Injured Third Party may not be charged any expenses related to the transfer of the Motor Vehicle title or issuance the of a certificate of ownership of the Motor Vehicle, provided that the Motor Vehicle is free of any obligations against Third Party such as traffic fines or otherwise.
19. In case of any conflict between the Company and the Injured Third Party concerning the value of damages, the amount of compensation or determination of the market value of the damaged Motor Vehicle, the Authority shall appoint a licensed and registered Surveyor and Loss Adjuster, specialized in this matter, to determine the value of the damages or the amount of compensation at the Company’s expense for the purpose of resolving the dispute.
20. In case of an agreement to insure the Insured himself, the Motor Vehicle Driver or any person excluded from the coverage under this Policy, the amount of the death benefit will be determined not less than (AED 200,000) Two Hundred Thousand Arab Emirates Dirhams at a minimum.
21. The Company may not refuse to compensate the Insured as a result of late notification of the accident, if lateness is attributed to an acceptable excuse.
22. The provisions of this Policy cover the damages to a Third Party caused by a trailer or semi-trailer as long as it is pulled by the vehicle.
23. Neither this Policy nor any rider hereto undermines the right of any person to claim for compensation or recovery of any amount payable under the provisions of any applicable legislation.

Chapter One: General Conditions
1. The Policy and its schedules shall constitute one integral contract, and any Rider to this Policy shall constitute an integral part hereof, and every term or phrase to which a special meaning has been given in any part of the Policy or its schedules shall have the same meaning elsewhere, unless the context otherwise requires.
2. Any notice or notification of an accident that is required by this Policy shall be served to the Company in writing by e-mail, facsimile or by hand delivery to the address designated in the Policy as soon as practically possible.
3. Any external agreement between the Insured and the Company that will reduce the coverages hereunder shall be deemed void.
4. In case of several insurances with more than one insurance company, the Company will only be committed to compensate damages in the percentage of the amount insured with it to the total insured amounts against the insured risk.
5. The Company and the Insured may agree, using riders in return for an additional premium and within the scope of the terms and conditions herein, that the Company shall insure against the other damages not provided for in this Policy, in particular:
  - Insurance against the damages to the properties of the Insured or the Motor Vehicle Driver at the time of the accident or the properties kept with them in trust, or in their guardianship or possession under a rider to this Policy or a separate policy.
  - Coverage of the damages or risks which occur outside the roads.
6. Notwithstanding the terms and conditions of this Policy, the Insurance Company may not refuse to compensate the Insured as a result of late notification of the accident, if the delay is attributed to an acceptable excuse.
7. With respect to a fleet insurance policy or any Motor Vehicle insured under this Policy, the Company may not enter into any external agreement that may reduce the coverage provided under this Policy or depriving the Insured or the Beneficiary of this Policy from exercising the right to claim for compensation hereunder, including depriving a claim for compensation for any reason not related to the accident such as age, gender, or otherwise, or the agreement will be deemed void.
8. - If the Insured Motor Vehicle is a total loss, and the Company compensates the Insured on that basis, the salvage will be deemed property of the Company. The Insured may not be charged any expenses related to the transfer of the Motor Vehicle title or issuance of a certificate of ownership of the Motor Vehicle.
  - The Insured shall be liable to pay the dues arising on the vehicle before receiving the compensation and to submit the required papers and power of attorney and attend before the competent departments, if necessary in order to transfer the ownership of the motor vehicle to the company. Whereas, in case there is mortgage, the company shall undertake without delay the communication with the competent entity (the owners of mortgages) to obtain a non-objection letter to transfer the ownership of the salvage of the vehicle to the company.
9. The Company may, at its expense, assume the judicial and settlement proceedings to represent the Insured or the Motor Vehicle Driver through an attorney in any investigation or interrogation and before any court in any lawsuit or intervention in any phase of the lawsuit in relation to a claim or accident for which the Company may be held liable under this Policy and which may give rise to the payment of compensation according to this Policy. The Company may settle or enter into a reconciliation for such claim. The Insured shall provide every possible cooperation with the Company by signing a power of attorney to the attorney or otherwise to enable the Company to initiate any proceedings.
10. For the purpose of verifying the details of the Insured Motor Vehicle, all details in Schedule (5) of this Policy shall be an integral part hereof.
11. No lawsuit arising from this Policy may be filed after the elapse of three years after the occurrence which has given rise to the lawsuit or the related parties become aware of its occurrence.
12. The courts of the United Arab Emirates shall be competent to determine any disputes arising from this Policy.
13. In case of the entitlement to the loss of benefit allowance (substitute motor vehicle) and the Affected Third Party has insurance against loss and damage and Third Party Liability , he shall be entitled, for the purpose of obtaining the loss of benefit allowance (substitute motor vehicle) to claim directly against his company ,which has the right to claim the for same amount paid to the insurance company of the insured ,who caused the accident and has insurance against Third Party Liability in accordance with the rules specified in the Third Party Liability policy.
14. If the motor vehicle “chassis” whether can be replaced or irreplaceable is damaged or the durable parts, such as pillars are damaged and need cutting, tightening or welding as a result of the accident, the Motor Vehicle shall be considered a Total Loss and the Company shall make compensation according to the value agreed upon between the Company and the Insured in the Insurance policy.

Chapter Two: Obligations of the Insurance Company
1. In case of any accident that results from the use of the Motor Vehicle, the Company shall compensate the Injured Third Party within the scope of its limits hereunder for all amounts which the Insured or the Motor Vehicle Driver is committed to pay as compensation for:
  
  .
  1. First: Death or any bodily injury caused to any person, including the Motor Vehicle Passengers, except for the Insured and the Driver of the Motor Vehicle that has caused the accident, and the passengers employed by the Insured if they are injured during and because of work. A person is considered a passenger if they are inside, getting in or out of the Motor Vehicle. The Maximum Liability of the Company for any claim or total claims arising from one accident is the value judicially awarded without any limit whatsoever.
    Second: In case of death of a spouse, a parent or a child, the maximum limit shall 200,000 AED ((Two Hundred Thousand Arab Emirates Dirhams) per each deceased person. In case of disability, the compensation shall be adjusted by the percentage of disability to the amount of AED 200,000 (Two Hundred Thousand Arab Emirates Dirhams), in addition to medical treatment expenses.
    Third: In all cases, and in the event of injury, the Company shall pay all treatment expenses towards the provider of any of the medical services, including all government and private hospitals, pharmacies, and any treatments necessary for the case. And, in case the treatment is not completed, the Insurance Company shall issue a letter of commitment directed to entity that will provide the treatment.
  2. Subject to paragraph (a) above, the liability of the Insurance Company shall be the value judicially awarded of any amount whatsoever, including the Third Party's judicial expenses and charges, except for fines. The Company shall pay compensation to the Third Party once the judgment becomes enforceable.
  3. As to the damages to items and properties (except for those owned by the Insured or the Motor Vehicle Driver at the time of the accident or the properties kept with them in trust or in their guardianship or possession), the insured amount of any claim or total claims arising from one accident is AED2,000,000 (Two Million Arab Emirates Dirhams) regardless of the number of the persons whose properties are damaged, inclusive of necessary costs of movement of the damaged Motor Vehicle to the agency shop or other repair shops according to this Policy, as the case may be.
  4. The Injured Third Party (the owner of a private motor vehicle) is entitled to a loss of benefit (use) allowance (Substitute Motor Vehicle) as follows:
    First: If the Injured Third Party chooses cash compensation, no loss of benefit allowance shall be paid.
    Second: If the damaged Motor Vehicle is to be repaired at a repair shop, as the case may be, the period of loss of benefit allowance shall be calculated in days from the date of delivery of the damaged Motor Vehicle, the accident report and deed of title to the Company.
    Third: The liability of the Company for loss of benefit allowance shall be calculated per day per damaged Motor Vehicle according to the rental fare of a similar Motor Vehicle rental of the same make, considering the prevailing and common price in the vehicle rental market in that Emirate, not to exceed three hundred dirhams per day. The Maximum period for loss of loss of benefit allowance fifteen days.
    Fourth: If the Company chooses not to pay the amount at prevailing price, the Company shall provide -to the injured party residency location- a similar substitute Motor Vehicle of the same made of the damaged motor vehicle in very good working condition for road traffic.
    Fifth: In case of the entitlement to the loss of benefit allowance and the Injured Third Party has insurance against loss and damage and Third Party Liability, he shall be entitled, for the purpose of obtaining the loss of benefit allowance (substitute motor vehicle) to claim directly to his company, which has the right of recourse for same amount paid against the insurance company of the insured, who caused the accident and has insurance against Third Party Liability
2. The Company may not apply any deductible from the Injured Third Party compensation.
3. In case of the death of a person covered by the insurance provided for hereunder, the Company shall pay the benefit due as a result of the accident to their heirs according to the terms and conditions hereof.
4. The Company shall abide by any settlement between the Insured and the Injured Third Party if it is done with its written consent.
5. The insurance provided for under this Chapter shall be extended, subject to the terms and conditions hereof, to the liability of every licensed driver while they are driving the Insured Motor Vehicle.
6. The Company shall pay an amount of AED 6,770 (Six Thousand Seven Hundred and Seventy Dirhams) to the provider of ambulance services and medical transportation to hospitals. The amount is per each injured person that suffers from a bodily injury or death and is being given first aid and transported to a hospital as a result of an accident caused by a Motor Vehicle insured by the Company against Third Party Liability. This obligation shall include all the deceased or injured from those accidents, including those excluded from the covered risks in paragraph (a) of clause (1). The capacity and readiness of the ambulance and the medical transportation to handle more than one injured person shall be taken into consideration in determining the amount of the ambulance allowance and medical transportation.

Chapter Two: Obligations of the Insurance Company
1. The Company shall compensate the Insured for loss or damage that occurs to the Insured Motor Vehicle and its accessories while in the vehicle, including damaged parts and spare parts, in the following cases:
  - If loss or damage arises from an accidental run-over, collision, turnover, or incident, or as a result of an unexpected mechanical breakdown or as a result of wear and tear of parts by use;
  - If loss or damage arises from an external fire or explosion, spontaneous combustion or lightning;
  - If loss or damage arises from robbery or theft;
  - If loss or damage arises from a third party willful act;
  - If loss or damage occurs during land transport, inland water transport, elevators or lifting machinery including loading and unloading processes related to the aforementioned transport processes; and
  - Any additional coverage to be agreed upon under this Policy or special riders to it.
2. Upon the occurrence of an accident, the Company shall:
  - Repair the Motor Vehicle or any of its parts, accessories, or spare parts and restore the vehicle to its pre-accident condition.
  - Pay the amount of loss or damage in cash to the Insured if this is agreed on with the Insured.
  - Replace the damaged Motor Vehicle in case of a total loss, unless the Insured requests the Company to pay them the amount in cash. In this case, the Company shall respond to the Insured's request.
3. If the Insured requests that new original parts are to be installed in lieu of the parts damaged during the accident or are to be paid for in cash, the Insured will bear the Depreciation Percentage set in Schedule (1) of the final value of the purchase invoice. In case of taxi vehicles, public transport vehicles and rental vehicles, the Insured will bear the Depreciation Percentage set in Schedule (2).
4. The Insured may assume the repair of damages that occur to the Motor Vehicle as a result of an insured accident hereunder, provided that the estimated repair costs do not exceed the value of repair agreed upon in writing with the Company.
5. If the Insured Motor Vehicle is lost, proves to be irreparable, or that costs of repair exceed 50% of the Motor Vehicle value before the accident, the insured value of the Motor Vehicle agreed upon between the Insurer and the Insured on signing of the Insurance Policy will be the basis of calculation of the compensation of loss and damage insured hereunder after deduction of the Depreciation Percentage of 20% from the insured value, and taking into account the fraction of insurance period (i.e., the proportion of the period from the commencement date of the insurance period to the date of the accident to the total insurance period).
6. If the Motor Vehicle becomes unroadworthy due to loss or damage insured hereunder, the Company will bear the necessary costs of safeguarding and transporting the Motor Vehicle to the nearest repair shop, in order to deliver it to the Insured after repair.
7. If the damaged Motor Vehicle is repaired with repair shops approved by the Company, the Company shall insure that the Motor Vehicle is repaired properly, carefully and professionally and that the work is warranted by the repair shops. The Company shall ensure that the Insured is enabled to have the Motor Vehicle checked by any approved motor vehicle examination agency in the UAE to make sure that the Motor Vehicle has been properly repaired without affecting the technical examination of the damaged Motor Vehicle at the concerned official authorities. If it is found that the repairs are below required and recognized technical standards, the Company shall address the issue(s) with the repair shop until the Motor Vehicle is professionally repaired and delivered to the Insured.
8. In case of any conflict between the Company and the insured concerning the value of damages or the amount of compensation, the Authority shall appoint a licensed and registered Surveyor and Loss Adjuster, specialized in this matter, to determine the value of the damages or the amount of compensation at the Company’s expense for the purpose of resolving the dispute.
9. In the case of the Insured wishes at the time of concluding the contract to repair the motor vehicle inside the Agency workshops after the lapse of the first three years of using the motor vehicle on the road, the Insurance Company may respond to the request and the determine an appropriate premium not exceeding the maximum tariff limit.

Chapter Three: Obligations of the Insured
1. In case of any accident that gives rise to a claim according to the provisions of this Policy, the Insured or the Motor Vehicle Driver shall notify the concerned official authorities and the Insurer within a reasonable period of time after occurrence of the accident and furnish all documents and details pertaining to the accident, unless the delay is attributed to an acceptable excuse. The Insured shall furnish the Company as soon as possible a copy of every claim, notice or judicial document once they receive them.
2. The Insured or the Motor Vehicle Driver shall notify the Company as soon as practically possible once they become aware of any lawsuit, investigation or findings concerning the accident, unless the delay is attributed to an acceptable excuse. In case of theft or any other criminal act which may give rise to a claim according to this Policy, the Insured shall promptly notify the concerned authorities and the Company as soon as practically possible and cooperate with the Company in that regard.
3. Neither the Insured nor any person acting on their behalf may declare acceptance of liability, offer, promise or payment of any amount without the written consent of the Company.

Chapter Three: Obligations of the Insured
1. To pay the Agreed upon Premium.
2. All reasonable precautions must be taken to keep and protect the Insured Motor Vehicle from loss or damage and maintain the same in a good working condition. In case of any accident or breakdown of the Motor Vehicle, the Insured may not leave the Insured Motor Vehicle or any part thereof without taking necessary precautions to prevent the aggravation of damages. If the Insured Motor Vehicle is driven before making necessary repairs by the Insured or the Motor Vehicle Driver, every increase of damage or every damage to the Insured Motor Vehicle arising from the same will not be the responsibility of the Company pursuant to this Policy.
3. The Insured shall remain the sole owner of the Insured Motor Vehicle throughout the Insurance Period, and may not lease the vehicle to any third party or sign any contract which may restrict their absolute ownership and possession of the Motor Vehicle without the prior written consent of the Company.
4. In case of any accident which may give rise to a claim according to the provisions of this Policy, the Insured shall immediately notify the concerned official authorities, and shall promptly notify the Insurer and furnish all information related to the accident without unjustifiable delay. The Insured shall furnish the Insurer as soon as possible for every claim, notice or judicial papers once they receive them.
5. The Company shall be notified as soon as practically possible once they become aware of any lawsuit, investigation or detections concerning the accident. In case of theft or any other criminal act which may give rise to a claim according to this Policy, the Insured shall notify the police and the Company promptly and as soon as practically possible and cooperate with the Company in this respect.
6. The Insurer may charge the Insured that has caused the accident with a deductible amount to be deducted from the due amount of compensation due with respect to any accident which is caused by them personally or by the person authorized by them to drive the Motor Vehicle or cases that are deemed committed by an unknown person, according to Schedule (3).
7. In addition to the deductible amounts set in Schedule (3), the Insured may charge the Insured who caused an accident an additional deductible as follows:
  - Maximum 10% of the amount of compensation if the Motor Vehicle Driver is below the age of 25 years.
  - Maximum 10% of the amount of compensation in case of taxi and public transport vehicles.
  - Maximum 15% of the amount of compensation of sports cars and modified vehicles.
  - Maximum 20% of the amount of compensation of vehicles modified outside the factory.
  - Maximum 20% of the amount of compensation of rental vehicles.
8. For application of paragraph (7) of this Chapter, application of Deductible Percentages shall apply the highest percentage in the case of several deductibles for one accident.
9. In case of Total Loss of the Motor Vehicle, the Deductible Percentages shall not be applied.

Chapter Four: Exclusions
This Insurance does not cover the Third Party Liability arising or emerging from accidents that are caused by the Insured Motor Vehicle in the following cases:
1. The accidents that occur outside the borders of the State.
2. The accidents that have occurred, caused, resulted or are related directly or indirectly to natural disasters such as floods, tornados, hurricanes, volcanoes, earthquakes or quakes.
3. Invasion, foreign enemy hostilities or warlike operations, whether war is declared or not, civil war, strike, riot, civil commotion, mutiny, rebellion, revolution, insurrection, or ionizing radiation contamination by radioactivity from any nuclear fuel, power usurpation, confiscation or nationalization, radioactive substances and radioisotopes, atomic or nuclear explosions, or any element related directly or indirectly with the abovementioned causes.
4. The accidents that occur to the Insured, the Motor Vehicle Driver or the persons employed by the Insured if they are injured during and because of work, unless they have obtained additional coverage under a rider or another policy.

Chapter Four: Exclusions
The Company will not pay any compensation for the following issues:
1. Indirect losses that occur to the Insured or devaluation of the Motor Vehicle as a result of its use, breakdown, defect or breakage of the mechanical or electrical devices.
2. The damage arising as a result of overload or excess of the limits of permissible width, length or height or the excess of the number of passengers beyond the licensed number, provided that it is proved that this is the proximate cause of damage.
3. The damage of tires if it does not occur at the same time as damage to the Insured Motor Vehicle.
4. The loss or damage which occurs to the Motor Vehicle with respect to accidents resulting from:
  - Use of the Motor Vehicle for purposes other than those mentioned in the Insurance Application attached to this Policy.
  - Violation of laws if the violation implies an intentional felony or misdemeanor according to the definition mentioned in the applicable Federal Penal Code.
5. If it is proven that the Motor Vehicle has been used or utilized in a speed race or test, provided that this is proved to be the proximate cause of the accident.
6. The damage to the Motor Vehicle from the accidents which occur during the Motor Vehicle being operated by a driver who is not licensed to drive according to the Traffic Laws or without obtaining a driving license for the kind of the Motor Vehicle according to the Traffic Laws and Regulations and the provisions of this Policy, or the driver holding an expired Driver's License who fails to renew it within thirty days from the date of the accident, or the license granted to them has been suspended by the court or competent authorities or according to the Traffic Regulations. This exclusion shall not apply in case the motor vehicle is intended for rental, as long as the leasing contract is concluded with a person who holds a valid driving license.
7. Loss or damage that occurs to the Motor Vehicle, or any part thereof, with respect to accidents while the Motor Vehicle is being driven under the influence of narcotics, alcohol or drugs that undermine the driver's ability to control the Motor Vehicle if this is proven to the competent authorities or confessed by the Motor Vehicle Driver. This exclusion does not apply in case of rental vehicles.
8. Loss or damage that occurs to the Motor Vehicle outside the geographical territory set out in this Policy, unless a rider is issued to extend coverage to this territory.
9. The accidents that have occurred, caused, resulted or are related directly or indirectly to natural disasters such as floods, tornados, hurricanes, volcanoes, earthquakes and quakes.
10. Invasion, foreign enemy hostilities or warlike operations, whether war is declared or not, civil war, strike, civil commotion, insurrection, revolution, coup d'état, usurped power, confiscation, nationalization, radioactive substances and radioisotopes, atomic or nuclear explosions, or any factor directly or indirectly related to any of the foregoing causes.
11. Loss or damage that occurs to the Insured Motor Vehicle if the Company loses the right of subrogation to the damage causer due to the Insured's declaration of being responsible for the accident, which they have not caused. If this is proven after payment of compensation to the Insured, the Company may have recourse to it for recovery of amounts paid to them.
12. Loss or damage that occurs to the Motor Vehicle off the road, as defined, unless a rider is issued extending coverage to drive outside the road.

Chapter Five: Recourses against the Insured
The Company may have recourse to the Insured, the Motor Vehicle Driver or the person responsible for the Accident, as the case may be, within the limit of the amount of compensation paid in the following cases:
1. If it is proven that the insurance was concluded based upon the Insured's misrepresentation or non-disclosure of material facts that affect the acceptance by the Company to cover the risks or determination of the premium.
2. If the Motor Vehicle is proven to have been used for purposes other than those set out in the Insurance Application attached to this Policy or the maximum number of passengers is exceeded or the Motor Vehicle was overloaded or its loading was not secured correctly or exceeds the limits of permissible width, length or height, provided that this is proven to be the proximate cause of the accident.
3. If it is proven that the Motor Vehicle was used in a speed race or test (in impermissible cases), provided that this is proven to be the proximate cause of the accident.
4. If following payment of the compensation it is proven that there is a violation of the laws, if the violation involves a willful felony or misdemeanor, as defined in the UAE's applicable penal code.
5. If it is proven that the Motor Vehicle was driven without obtaining the driving license for the type of Motor Vehicle according to the Traffic Laws and Regulations and the provisions of this Policy, or that the license granted to the Insured or the Motor Vehicle Driver was suspended by a court's order or by the concerned authorities or by virtue of traffic regulations, or that Motor Vehicle driving license was expired at the time of the accident, unless the driver manages to renew it within thirty days from the date of accident.
6. If it is proven that the Motor Vehicle Driver, or another person allowed by them to drive the Motor Vehicle, caused the accident while being in an abnormal condition due to being under the influence of narcotics or alcohol that undermine the driver's ability to control the Motor Vehicle or medical drugs for which driving is medically prohibited. In case of rental vehicles, recourse will be made against the Motor Vehicle Driver (renter).
7. If it is proven that the accident occurred intentionally by the Insured or the Motor Vehicle Driver.
8. If the trailer, half-trailer or semi-trailer caused the accident and the Insured has not agreed with the Company to include it in the policy.
9. If the Motor Vehicle is used outside the road, as defined in this Policy, without any additional coverage.
10. If damages occur to the Injured Third Party is a result of theft or robbery of the Insured Motor Vehicle, recourse will be against the thief only.

Chapter Five: Recourses against the Insured
The Company may have recourse to the Insured or the Motor Vehicle Driver or both, as the case may be, in the amount of compensation paid in the following cases:
1. If it is proven that the insurance was concluded based upon the Insured's misrepresentation and non-disclosure of material facts that affect the acceptance by the Company to cover the risks or insurance rate.
2. If following payment of compensation, it is proven that the Motor Vehicle was used for purposes other than those set out in the Insurance Application attached to this Policy, or the maximum number of passengers was exceeded, or the Motor Vehicle was overloaded, or its loading was not secured correctly or exceeds the limits of permissible width, length or height, provided that this is proven to be the proximate cause of the accident.
3. If following payment of the compensation it is proven that there is a violation of the law, if the violation involves a willful felony or misdemeanor, as defined in the UAE's applicable penal code.
4. If it is proven that loss or damage that occurred to the Motor Vehicle, or any part thereof, arose from driving the motor vehicle by a person who is not authorized to drive in accordance with the Traffic Law or without obtaining a driving license, or his driving license has expired, or the Insured or any other person allowed to drive it is driving under the influence of narcotics, alcohol or drugs that undermine the driver’s ability to control the Motor Vehicle, if this is proven to the concerned authorities or confessed by the Motor Vehicle Driver. In case of rental vehicles, recourse will be against the Motor Vehicle Driver (renter).
5. If the accident is proven to have occurred intentionally by the Insured or the Motor Vehicle Driver.
6. If the trailer, half-trailer or semi-trailer causes an accident, and the Insured has not agreed with the Company on the existence of such a trailer.
7. If loss or damage that occurs to the Motor Vehicle is a result of theft or robbery, recourse will be against the thief.

Chapter Six: Policy Termination
1. The Company may terminate this Policy on the condition that there are serious grounds for termination during the Policy Period by a notice in writing to be sent to the Insured via e-mail, facsimile, hand delivery or registered letter thirty days prior to the fixed date of termination to the latest address of the Insured known by the Company. The Insurance Authority shall be advised of the grounds of such termination. In this case, the Company shall refund to the Insured the paid premium after deducting a portion in proportion to the period during which the Policy has remained in effect.
2. The Insured may terminate this Policy by a notice in writing to be sent to the Company via e-mail, facsimile, hand delivery or registered letter seven days prior to the fixed date of termination. In this case, the Company shall refund to the Insured the paid premium after deducting a portion in proportion to the period during which the Policy has remained in effect subject to the Short Rate Schedule No. (4), provided that there is no compensation paid to the Insured or pending claims in relation to this Policy during the period of time the Policy is valid, if the Insured has caused the accident or in cases that are deemed committed by unknown persons.
3. This Policy shall be considered terminated in case of a total loss to the Motor Vehicle, provided that its registration is deleted with a report issued by the Road and Traffic Department confirming that it is unroadworthy, and the Company shall compensate the Insured according to the provisions of this Policy.

Chapter Six: Policy Termination
1. Neither the Company nor the Insured may terminate this Policy during its term as long as the Motor Vehicle license is valid.
2. However, the Policy may be terminated before its expiration on the grounds of:
  1. Cancellation of the Motor Vehicle license;
  2. Submission of a new policy due to change of the Motor Vehicle details; or
  3. Transfer of the Motor Vehicle title by virtue of a certificate issued by the concerned authority.
  In this case, the Company must refund to the Insured the paid premium after deducting a portion in proportion to the period during which the Policy has remained in effect according to the Short Rate Schedule No. (3) set out in this Policy, provided that there are no paid claims or outstanding claims where the Insured has caused the accident.
3. This Policy shall be considered terminated in case of a total loss to the MotorVehicle, provided that its registration is deleted with a report issued by the Roadand Traffic Department confirming that it is unroadworthy, and the Companyand the Insured shall remain bound by its provisions before termination.

Schedule No. (1)
Depreciation Percentages, Except for Taxi Vehicles, Public Transport Vehicles and Rental Vehicles, According to the Date of First Registration and Use
Year
Percentage
First
-
Second
5%
Third
10%
Fourth
15%
Fifth
20%
Sixth and above
30%

Schedule No. (2)
Depreciation Percentages for Taxi Vehicles, Public Transport Vehicles and Rental Vehicles According to the Date of First Registration and Use
Year
Percentage
Last six months of the first year
10%
Second
20%
Third
25%
Fourth
30%
Fifth
35%
Sixth and above
40%

Schedule No. (3)

Deductibles

Motor Vehicle	Deductible
Private vehicles where the permissible number of passengers of which does not exceed (9) passengers and its value does not exceed AED 50,000	Maximum AED 350/per each accident
Private vehicles where the permissible number of passengers of which does not exceed (9) passengers and value of which exceeds AED 50,000 and not exceeding AED 100,000	Maximum AED 700/per each accident
Private vehicles where the permissible number of passengers of which does not exceed (9) passengers and value of which exceeds AED 100,000 and not exceeding AED 250,000	Maximum AED 1,000/per each accident
Private vehicles where the permissible number of passengers of which does not exceed (9) passengers and value of which exceeds AED 250,000	Maximum AED 1,200/per each accident
Private vehicles where the permissible number of passengers of which does not exceed (9) passengers and value of which exceeds AED 500,000	Maximum AED 1,400/per each accident
Private vehicles where the permissible number of passengers of which exceeds (9) passengers does not exceed AED (12) passengers	Maximum AED 1,500/per each accident
Private vehicles the permissible number of passengers of which exceeds (12) passengers, rental vehicles, and trucks where the tonnage of which exceeds (3) tons	Maximum AED 1,700/per each accident
Trucks where the tonnage of which exceeds (3) tons and passenger buses and industrial vehicles for construction and agricultural works	Maximum AED 4,500/per each accident

Schedule No. (4)

Short Rate Schedule - Percentages of Recoverable Premium

Policy Validity Period	Recoverable Premium
A period not exceeding one month	80%
A period exceeding one month and not exceeding four months	70%
A period exceeding four months and not exceeding six months	50%
A period exceeding six months and not exceeding ten months	30%
A period exceeding ten months	Nil

Schedule No. (5)

Schedule of Details of the Insured Motor Vehicle in the Insurance Policy against Loss and Damage

Details of Motor Vehicle
Country of Manufacture	Plate Number	Make, Model and Color	Motor Vehicle Classification	Registration Type	Purpose of use	Manufacturing Year	Tonnage or Weight	Number of Passengers with Driver

Engine Number:					Chassis Number:

……………………….. Company declares that the Motor Vehicle detailed above in this Schedule is insured with it according to the provisions of this Policy.

Issued By:

Issuance Date:

Policy Number:

The term of insurance begins at …………. on …/…/….., and expires at …………. on …/…/…..
Agreed upon premium:		Issuance date: …/…/…..
Insured's Details		Company's Details
Insured's Name	:	Company's Name	:
Address	:	Address	:
E-mail	:	E-mail	:
Postal Address	:	Postal Address	:
Identification Number	:
Phone	:	Phone	:
Name and signature of the Insured or their representative:		Signature and stamp of the Company:

Motor Vehicle Insurance Application

Applicant's Details
Name according to ID	First	Second	Third	Family Name

Date of Birth	/ /	P.O. Box		Postal Code
ID Number			E-mail
Home Phone		Office Phone		Mobile
Address/Emirate
Profession			Employer
Driving License Number			Expiration Date
Trade Name (if any)			Commercial Register Number
Head Office

Insurance Service Details
Registration Mark	Truck	Small Truck	Large Truck	Other
Model/Use	Private	Commercial	Rental	Driving Education	Other
Body Number			Engine Number
Chassis Number			Engine Capacity (CC)
No. of Passengers			Manufacturing Year
Current Value without Accessories			Current Value, including Accessories (to be elaborated)
Insurance Period			Insurance Type
Insured/Representative			Signature

/Stamp: Insurance Authority/

Insurance Authority - Unified Motor Vehicle Insurance Policy Against Loss and Damage

Chapter Seven: General Provisions
1. The Company shall include all details in Schedule (5) of this Policy, and this Schedule shall be part of this Policy.
2. Any lawsuits arising from this Policy may not be filed after the lapse of three years from the date of the accident or the Injured Party and related parties become aware of the damage and the person liable for it.
3. The courts of the State shall be competent to determine any dispute arising in connection with this Policy.

Schedule No. (1)
Depreciation Percentages for Parts of Private Motor Vehicles
Year Percentage
First -
Second 5%
Third 10%
Fourth 15%
Fifth 20%
Sixth and above 30%

Schedule No. (2)
Depreciation Percentages for Parts of Taxi Vehicles, Public Transport Vehicles and Rental Vehicles
Year
Percentage
Last six months of the first year
10%
Second
20%
Third
25%
Fourth
30%
Fifth
35%
Sixth and above
40%

Schedule No. (3)

Short Rate Schedule – Percentages of Recoverable Premium

Policy Validity Period	Recoverable Premium
A period not exceeding one month	80%
A period exceeding one month to the end of the fourth month	70%
A period exceeding four months to the end of the sixth month	50%
A period exceeding six months to the end of the eighth month	30%
A period exceeding eight months	Nil

Schedule No. (4)

List of the parts damaged by a traffic accident which must be replaced for new ones without deduction of any depreciation

Glass
Brake master cylinders
Brake wheel cylinders
Brake calipers
Brake cables (conduit type)
Brake hoses
Brake diaphragms
Steering boxes
Steering rakes
Steering ball joints and swivels
Seat belts

Schedule No. (5)

"Schedule of Details of the Insured Motor Vehicle in the Insurance Policy against Third Party Liability"

Details of Motor Vehicle
Country of Manufacture	Plate Number	Make, Model and Color	Motor Vehicle Classification	Registration Type	Purpose of use	Manufacturing Year	Tonnage	Number of Passengers with Driver

Engine Number:					Chassis Number:

……………………….. Company declares that the Motor Vehicle detailed above inthis Schedule is insured with it according to the provisions of this Policy.

Issued By: Issuance Date:

Policy Number:

The term of insurance begins at …………. on …/…/….., and expires at …………. on …/…/….. Total premium: Issuance date: …/…/…..
Insured's Details		Company's Details
Insured's Name	:	Company's Name	:
Address	:	Address	:
E-mail	:	E-mail	:
Postal Address	:	Postal Address	:
Phone	:	Phone	:
Identification Number	:
Name and signature of the Insured or their representative:		Signature and stamp of the Company:

Motor Vehicle Insurance Application

Applicant's Details
Name according to ID	First	Second	Third	Family Name

Date of Birth	/ /	P.O. Box		Postal Code
ID Number			E-mail
Home Phone		Office Phone		Mobile
Address/Emirate
Profession			Employer
Driving License Number			Expiration Date
Trade Name (if any)			Commercial Register Number
Head Office

Insurance Service Details
Registration Mark	Truck	Small Truck	Large Truck	Other
Model/Use	Private	Commercial	Rental	Driving Learning	Other
Body Number			Engine Number
Chassis Number			Engine Capacity (CC)
No. of Passengers			Manufacturing Year
Current Value without Accessories			Current Value, including Accessories (to be elaborated)
Insurance Period			Insurance Type
Insured/Representative			Signature

Insurance Authority Board of Directors’ Decision No. (30) of 2016 Concerning issuing Regulation for Motor Vehicle Insurance Tariffs
Effective from 1/1/2017

_{This Decision has been amended by}_{the Insurance Authority Board of Directors' Decision No. (41) of 2017}_and_{the Insurance Authority Board of Directors' Resolution No. (17) of 2020}_{respectively. You are viewing the latest version. Please find the PDF of the first version on the table below.}
version 2 (consolidated as of 01/01/2018)
version 1 (effective from 01/01/2017)

The Chairman of the Board of Directors of the Insurance Authority,
Having reviewed the Federal Law No (6) of 2007 on the Establishment of the Insurance Authority and Organization of Insurance Operations, as amended.
Resolution No. (2) of 2009 of the Insurance Authority Board of Directors Concerning Issuing the Executive Regulations of the Federal Law No (6) of 2007;
The Federal Law No (21) of 1995 concerning Traffic, as amended, and its Executive Regulations;
Resolution No (3) of 2010 of the Insurance Authority Board of Directors concerning the Code of Conduct and Ethics to be Observed by Insurance Companies Operating in the UAE.
Resolution No (25) of 2016 of the Insurance Authority Board of Directors Concerning Issuing Regulation of the Unified Motor Vehicle Insurance Policies.
Based upon the approval of the Insurance Authority Board of Directors and the proposal of the Director General of the Insurance Authority;
Has resolved as follows:

Article 1
The tariffs set out in Table (1) attached hereto shall be applied to Third Party Liability Motor Insurance Policy. The tariffs set out in Table (2) attached hereto shall be applied to the Motor Insurance Policy Against Loss and damage and Third Party Liability jointly. The forms hereto attached shall be considered as an integral part of these Regulations.

Article 2
(1) The insurance companies shall abide by applying the tariffs, as set out in Article (1) hereof to all motor vehicle insurance policies to be issued as of the date of this Regulation comes into force
(2) Insurance companies are free to compete by offering tariffs within the limits set forth in tables (1) and (2) attached to the Regulations herein. If the company decides to compete in offering tariffs, each company shall be fully and directly liable for the soundness of its decision from the technical and actuarial aspects pursuant to the Insurance Authority Board of Directors Resolution No. (11) of 2016 Concerning the Revision of the Pricing Policy Applied by a Company in the Classes of Property and Liability Insurance and the underwriting policy of the actuary in a way that reflects its previous experience with its customers and does not endanger its financial position or lead to the loss of the insured rights.
(3) The Company may grant a reduction to the insurance applicant (Individual) with claim-free record according to the following percentages:
1. a) 10% of the minimum premium to the owner of the vehicle that did not cause an accident leading to a claim during the previous insurance year.
2. b) 15% of the minimum premium to the owner of the vehicle that did not cause an accident leading to a claim during the previous two years.
3. c) 20% of the minimum premium to the owner of the vehicle that did not cause an accident leading to a claim during the previous three years.
4. d) 10% of the minimum premium as "a loyalty reduction to the company's' customers". The reduction shall be granted to the owner of the vehicle at the time of renewing his policy with the same insurance company, provided that the insurance is not transferred to another person.
5. e) 50% discount of the minimum insurance premium shall be granted to the owner of the motor vehicle upon renewal or issuance of new policies to the following categories:
  1. Categories of workers in the medical sector.
  2. Members of the Armed Forces and the Police.
  3. Members of the Civil Defence.
  4. People of determination.
  5. Elderly people, who are above 60 years old.
  6. Insurance applicants (individuals) with an accident-free records.
(4) The insurance company shall comply to immediately provide the customer who was insured with it with a free of charge certificate showing the insurance experience for the previous years electronically or in writing, where the company shall be liable for the data contained therein.
(5) The Company may grant a reduction to the fleet of vehicles or the fleet of motorcycles by not more than 30% of the minimum premium. The fleet means: "five or more of vehicles or Motorcycles owned by one natural person or a legal person, including ministries, federal and local authorities, official government or semi- official government bodies, an independent body, a charity or nongovernmental organization, a company or individual institution, etc."
(6) The company may grant a reduction for the vehicles running by gas or by electricity at the renewal time of not more than 25% of the insurance premium taking into account the accidents caused by the vehicle and led to claims. Nevertheless, when there is more than one reason for reduction, only the highest rate of reduction shall apply.
(7). The provisions of the preceding paragraphs shall apply to the vehicle insurance against Third Party Liability and the vehicle insurance against loss and damage.
(8). The salon Taxi and rental vehicles: As an exception from the provisions of paragraph (1) of this Article, the Company may agree with the Owner on the insurance tariff of this type of vehicles which shouldn't exceed (6.5%) of the value of the vehicle, based on the loss ratio, the technical opinion and its previous experience.
(9). The "tariff'' of the Third Party Liability insurance shall apply to the "classic and old vehicle", provided that the determination of the premium of the vehicle insurance against loss and damage shall be subject to the agreement between the owner of the vehicle and the insurance company. The classic and old vehicle means "an old vehicle of historical value not less than 30 years old, has artistic industrial value, or has a unique design that is different from its like.
(10) The company has the right to apply one of the following two cases:.
1. a) Return part of the premium of the valid insurance policies in proportion to the periods of application of the national sterilization system issued by the competent authorities.
2. b) Reduction in the premium from the minimum premium, when renewing insurance policies in proportion to the periods of application of the national sterilization system issued by the competent authorities.
(11) The company has the right to change the calculation of the premiums for new or renewed policies by making them related to the kilometers driven by the motor vehicle; in the event that the insured requests that, provided that the insurance premium does not exceed the maximum specified in the tariffs for the vehicle insurance rates determined by the authority

Article 3
1. The tariffs set out in Article (1) hereof shall include the following:
a) All coverages set out in the two policies as well as all administrative charges and expenses, and commissions.
b) The additional premium resulting from the charges of the ambulance and medical transport to hospitals.
1. The insurance period shall be (13) months. The premium shall be collected for the insurance period fractions on a proportionate basis.
2. In case that a company and an the insured agree on additional coverages, other than those in the policy issued under the Resolution No (25) of 2016, the agreed additional premium shall be paid. The company shall state such coverages in an understandable clear wording and in a different colour or by an addendum.
3. The insurance company, agent, or broker shall not be entitled to impose or receive any amount or additional sum without a resolution for such from the Authority.
4. The company shall abide by accurately and clearly including the insurance premium/ contribution value received from the insured in the insurance policy issued thereby and the motor vehicle insurance certificate.

Article 4
The Director General shall issue the required decisions for implementing the provisions hereof.

Article 5
All authorities, respectively and within their competences, shall implement the provisions hereof.

Article 6
1. The application of the Circular No 28/7/AV of the Ministry of Economy and Commerce, dated 24/ 06/ 1996, shall be cancelled.
2. Each provision that contradicts the provisions hereof shall be cancelled.

Article 7
This Regulation shall come into force as of 01/ 01/ 2017 and shall be published in the Official Gazette.

Attachments:
- Table 1. Tariffs of Third Party Liability Insurance Policy.
- Table 2: Tariffs of Motor Vehicle Insurance Policy Against Loss and Damage and Third Party Liability.

Table (1)

Tariffs of Third Party Liability Insurance Policy

Type of vehicle		Minimum (Insurance Period 13 months) (AED)	Maximum (Insurance Period 13 months) (AED)
Salon - Private	4 cylinders	750	1.300
	6 cylinders	850	1.400
	8 cylinders	950	1.600
	> 8 cylinders	1.300	2.100
Salon- commercial	4 cylinders	750	1.350
	6 cylinders	850	1.500
	8 cylinders	950	1.600
	> 8 cylinders	1.300	2.250
Four-wheel drive- private	4 cylinders	1.000	1.750
	6 cylinders	1.050	1.900
	8 cylinders	1.100	1.950
	> 8 cylinders	1.200	2.150
Four-wheel drive- commercial	4 cylinders	1.000	1.750
	6 cylinders	1.050	1.900
	8 cylinders	1.150	2.100
	> 8 cylinders	1.350	2.450
Pickup & Truck	Up to 1 ton	1.000	1.750
	Up to 2 tons	1.000	1.800
	Up to 3 tons	1.150	2.100
	More than 3 tons	1.300	2.300
Trailer, water & fuel tanker	Trailer	1.200	2.150
	Water tanker up to 2000 gallons	1.450	2.250
	Water tanker more than 2000 gallons up to 5000 gallons	1.400	2.500
	Water tanker trailer	1.500	2.500
	Fuel tanker	2.000	3.300
Buses	Up to 14 passengers	1.100	1.900
	Up to 26 passengers	1.800	3.250
	Up to 56 passengers	2.150	3.850
Equipment	Light equipment- dumper & agriculture	1.000	2.500
	Light equipment/ forklift- private	1.300	2.500
	Light equipment/ forklift- commercial	1.300	2.500
	Heavy vehicle- private	1.600	3.000
	Heavy vehicle- commercial	1.600	3.000
motorcycle	Up to 200 cc	550	1.150
	Above 200 cc	600	1.150

The insurance company, the insurance agent or the broker may not impose or collect any additional payment or allowance except by a decision issued by the Insurance Authority

Table(2)

Tariffs of Motor Vehicle Insurance Policy Against Loss and Damage and Third Party Liability

		Rate (insurance period 13 month)		Driver	Passenger
No.	Type of vehicle	Minimum Premium	Maximum	(AED)	(AED)
1	Salon	1.300	5%	120	30
2	Four-wheel drive	2.000	7%	120	30
3	Private and commercial trucks
	A- pickup and van up to 3 tons (Light)	1.550	7%	120	30
	B- heavy, more than 3 tons	2.000	9%	120	30
4	Buses
	A- up to 15 seats (private)	1.900	7%	120	30
	B-up to 15 seats (commercial)	1.950	7%	120	30
	C- up to 26 seats (private)	2.350	7%	120	30
	D- up to 26 seats (commercial)	2.400	7%	120	30
	E- up to 56 seats (private)	2.400	7%	120	30
	F -Up to 56 seats (commercial)	2.500	7%	120	30
5	Equipments	2.750	7%	120	30
6	Motorcycle	Up to 200 CC: 800 More than 200 CC: 850	5%	120	-

The insurance company, the insurance agent or the broker may not impose or collect any additional payment or allowance except by a decision issued by the Insurance Authority

Payment of the insurance premium for (the passenger) shall apply only to individuals who work for the insured.

version 2 (consolidated as of 18/01/2021)	pdf download
version 1 (effective from 22/09/2016)	pdf download

version 2 (consolidated as of 18/01/2021)	pdf download
version 1 (effective from 22/09/2016)	pdf download

version 2 (consolidated as of 18/01/2021)	pdf download
version 1 (effective from 22/09/2016)	pdf download

Year	Percentage
First	-
Second	5%
Third	10%
Fourth	15%
Fifth	20%
Sixth and above	30%

Motor Insurance

Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies

Article (1) Definitions

Article (2)

Article (3)

Article (4)

Article (5)

Article (6)

Article (7)

Article (8)

Article (9)

Article (10)

Article (11)

The Unified Motor Vehicle Insurance Policy Against Loss and Damage issued pursuant to the Regulation of Unified Motor Vehicle Insurance Policies according to Insurance Authority Board of Directors' Decision No. (25) of 2016

The Unified Motor Vehicle Insurance Policy Against Third Party Liability issued pursuant to the Regulation of Unifying Motor Vehicle Insurance Policies according to Insurance Authority Board of Directors' Decision No. (25) of 2016

Definitions:

Definitions

Chapter One: General Conditions

Chapter One: General Conditions

Chapter Two: Obligations of the Insurance Company

Chapter Two: Obligations of the Insurance Company

Chapter Three: Obligations of the Insured

Chapter Three: Obligations of the Insured

Chapter Four: Exclusions

Chapter Four: Exclusions

Chapter Five: Recourses against the Insured

Chapter Five: Recourses against the Insured

Chapter Six: Policy Termination

Chapter Six: Policy Termination

Schedule No. (1)

Schedule No. (2)

Schedule No. (3)

Schedule No. (4)

Schedule No. (5)

Motor Vehicle Insurance Application

Chapter Seven: General Provisions

Schedule No. (1)

Schedule No. (2)

Schedule No. (3)

Schedule No. (4)

Schedule No. (5)

Motor Vehicle Insurance Application

Insurance Authority Board of Directors’ Decision No. (30) of 2016 Concerning issuing Regulation for Motor Vehicle Insurance Tariffs

Article 1

Article 2

Article 3

Article 4

Article 5

Article 6

Article 7

Table (1)

Table(2)