UAE: Car insurance claims rise 45% as more vehicles hit the road

Dubai - Rates are similar to their pre-Covid levels as the economy opens up and residents return to their offices.

Car insurance claims have been on the rise over the last few months, reaching the pre-Covid-19 levels of 2019 as the economy opens up and UAE residents return to their offices, resulting in more vehicles on the road.

A new study revealed that the trend of reduced accidents and fall in insurance claims, which started following the outbreak of the Covid-19 pandemic last year, is now reversing. Conducted by RSA Insurance and RoadSafetyUAE, the study found that car insurance claim rates have increased nearly 45 per cent in recent months as compared to the months of Covid-19, now reaching levels similar to 2019 rates. This upward trend is expected to continue in the coming months.

In line with the decline in the number of road accidents during Covid-19, car insurance claims had dropped by about 60 per cent.

The study said claims due to wrong actions of the driver, such as speeding and not maintain the sufficient distance between cars, made up a large portion of the claims – about 40 per cent – in recent months and that the main causes of accidents and claims are preventable.

“Many countries are still implementing restrictions to control and curb the spread of Covid-19 and its variant strains. UAE is considered, on a global scale, to be one of the first few countries to have resumed similar levels of economic activity. Hence, this trend of increased car insurance claims is likely to be a reference for other markets,” said Sunita Pais, head of claims at RSA UAE.

Thomas Edelmann, founder and managing director of RoadSafetyUAE, said insurance companies possess large amounts of data that can play an important role in understanding accident patterns.