Chairman of the Insurance Authority,
Having perused:

- Federal Law No. (21) of 1995 Concerning Traffic and the Amendments thereof;
- Federal Law No. (6) of 2007 concerning the Establishment of the Insurance Authority and the Organization of Insurance Operations, the amendments thereof and its Executive Regulation;
- Insurance Authority Board of Directors’ Resolution No. (25) of 2016 Concerning the Issuance of the Unified Motor Insurance Policy and the amendments thereof;
- And, based on the recommendation of the Director General of the Insurance Authority and the approval of the Board of Directors;

Has resolved,

Article (1)

The Unified Motor Vehicle Insurance Policy Against Third Party Liability shall be modified as follows:

1. Clause No. (16) of (Chapter One: General Conditions) shall be replaced by the following text:

(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.)

2. Clause No. (17) of (Chapter One: General Conditions) shall be replaced by the following text:

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.

3. Paragraph No. (a) of Clause No. (19) Of (Chapter One: General Conditions) shall be replaced by the following text:

“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.”

4. Paragraph (b) of clause No. (19) Shall be deleted from (Chapter One: General Conditions).
    
5. The text of paragraph (a) of clause No. (1) of (Chapter Two: Obligations of the Insurance Company) shall be replaced by the following text:

“A- 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.

Fourth: Paragraph (d) of Clause (1) of (Chapter Two: Obligations of The Insurance Company) shall be canceled.

6. The following clause with number (6) shall be added to (Chapter Two: Obligations of the Insurance Company) and shall read as follows:

“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.”

7. The text pf paragraph (e) of Clause (1) of (Chapter Two: Obligations of The Insurance Company) shall be replaced by the following text:

“e. 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.

Article (2)

The Unified Motor Vehicle Insurance Policy Against Loss and Damage shall be amended as follows:

1. The text of clause (14) of (Chapter One: General Conditions) shall be replaced by the following text:

“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.”

2. The text of clause (8) of (Chapter Two: Obligations of the Insurance Company) shall be replaced by the following text:

“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.”

3. A clause with number (9) shall be added at the end of (Chapter Two: Obligations of the Insurance Company) and shall read as follows:

"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.”

4. A clause with number (9) shall be added to (Chapter Three: Obligations of the Insured) and shall read as follows:

“9. In case of Total Loss of the Motor Vehicle, the Deductible Percentages shall not be applied.

5. Clause (6) of (Chapter Four: Exclusions) shall be amended by replacing the phrase “for the Kind / category” by “for the Kind”, and by adding the following phrase at the end of the article “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 ".

6. Clause (4) of (Chapter Five: Recourses against to the Insured) shall be amended to read as follows “(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).

Article (3)

The provisions of this resolution shall be applied on the insurance policies issued as from the date of entering into effect. Whereas, the insurance policies issued before the provisions of this resolution enter into effect shall remain in force until the expiry date.

Article (4)

This resolution shall be published in the Official Gazette and shall take effect after two months from the date of its publication.