Insurers keen on increasing motor premiums

Following the decision of the government to raise compensation from USD 41 000 to USD 54 000 in case of death accident, the insurance companies hope to get government agreement to increase their premiums. Experts estimate that this measure could help the automobile insurance sector regain its stability after several years of losses. Some insurance companies have already infringed the law by refusing to ensure certain vehicles or imposing prohibitive rates. The Traffic and Licensing Department has made pressure on the government in order to stop these practices and to enforce the same rate scale throughout the Emirates.