The UAE authorities have introduced a new motor insurance regulation covering third party liability and damage to the vehicle. The texts adopted put an end to the separate provisions governing compulsory motor third party liability insurance and optional insurance against all risks.
The amendment, now in force, introduces a common policy for both covers. The new system reduces compensation for property damage from 250 000 to 2 million AED (68 000 to 545 000 USD). Drivers caught in an accident are now entitled to an allowance of 300 AED (82 USD) per day for the rental of a vehicle during a 10-day period.
New deductibles have also been introduced; They may be up to 10% of the amount of the indemnity if the driver is less than 25 years old, 15% for public vehicles or taxis or even 20% for sporting cars. In case of death of a member of the insured's family, the driver of a rental vehicle, a public vehicle or a driving- school car, the insurer must pay 200 000 AED (54 000 USD) per victim. In case of injury, compensation will be based on the disability rate of the victim.
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