A new pay-as-you-go motor insurance cover will soon be launched in the United Arab Emirates. It relates to comprehensive and third party liability contracts whose price will depend on the distance driven by the insured.
According to the Emirati Insurance Authority, two ways are possible for the pricing of the new cover. The first one is to adjust the vehicle's insurance cost to its real use depending on the speed and distance travelled. The second way is to anticipate the payment of the premium by agreeing with the insurer on the distance to be covered. In this case, the insured can recover part of the paid premium in the event the distance driven is shorter than the one mentioned in the contract.
The Emirati Insurance Authority is currently studying the conformity of the project with the legislation in force before its implementation on the market.
Read also: