UAE gets first 3rd-party motor insurance for rain, flood damages; rates start at Dh350

The insurance policy that covers third-party accidental loss or damage to motor vehicles against floods and storms has been launched for the first time in the UAE.

Launched by the Abu Dhabi-listed Al Fujairah National Insurance Co. (AFNIC), FloodGuard offers coverage for both personal and company-owned vehicles used exclusively for personal or leisure purposes, especially those over seven years old that often do not qualify for comprehensive insurance. This policy doesn’t cover commercial vehicles.

Policyholders can get coverage limits of Dh25,000 or Dh50,000 for a 12-month term by paying a premium of Dh350 and Dh550, respectively. Since this is a standalone product, all motorists in UAE who have purchased vehicle insurance policies from other insurers can also buy this policy.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

This product does not replace motor comprehensive, motor third-party liability (TPL), or statutory vehicle insurance and is compatible only with existing motor TPL policies from AFNIC or other insurers. FloodGuard will be active 15 days after the policy start date.

However, if the car gets damaged for reasons aside from a storm like getting stuck in a sand dune, beach, wadi or man-made body of water is not covered.

The policy covers only cars and not two-wheelers against rain and storm damage.

Thousands of vehicles were damaged in the UAE during the mid-April rains, causing damage worth millions of dirhams to insurers and vehicle owners. Rain-damaged vehicles that had comprehensive policies were able to file claims. Third-party insurance claims were rejected by the insurers.

• UAE: Insurers' profits could drop up to 25% due to rains in April