Comprehensive car insurance is a type of policy that provides extensive protection for car owners. It covers a wide range of potential damages and losses, not only those caused to others as in third-party liability insurance but also those incurred by the insured vehicle. This type of insurance is offered by various providers, each with their unique terms and conditions. In this article, we will explore the details of comprehensive car insurance, with specific references to policies offered by Emirates NBD, AIG, and the guidelines provided by the Central Bank of the UAE.
Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa, and Turkey) region, offers comprehensive car insurance that covers loss or damage to the insured vehicle due to various incidents, including accidents, fire, theft, and natural disasters. It also provides coverage for third-party liability, personal accident benefits for the driver and passengers, and emergency medical expenses.
AIG, a global insurance corporation, provides comprehensive car insurance that includes coverage for loss or damage to the insured vehicle, third-party liability, and various additional benefits. These include coverage for personal belongings, windscreen damage, no-claims discount protection, and emergency medical expenses.
The Central Bank of the UAE, in its brochure, provides a detailed overview of the fundamental concepts of motor vehicle insurance in the UAE. It outlines the key features of comprehensive insurance, which includes protection against damage to the insured vehicle and third-party liability. It also provides information on the various risks covered under the policy, the provision of a substitute motor vehicle, and the exclusions of the policy.
While the specifics of what is included and excluded can vary between different insurance providers and specific policies, the core principle of comprehensive car insurance remains the same: to provide extensive protection for car owners against a wide range of potential damages and losses. Always read the terms and conditions of your policy carefully to understand what is covered and what is not.
Comprehensive Car Insurance Includes:
- Damage to the Insured Vehicle: Comprehensive insurance covers any damage to the insured vehicle, regardless of whether the vehicle was in use or stationary, or whether the insured caused the damage or was affected by an accident caused by another party.
- Third-Party Liability: Comprehensive insurance also covers damages caused by your vehicle to others, including both persons and property.
- Risks Covered: The policy covers loss or damage to the vehicle and its accessories resulting from collision, fire, external explosion, spontaneous combustion or lightning, robbery/theft or a third-party wilful act, damage caused by elevators, cranes, as well as loading and offloading during land and inland water transport, intentional actions by others, and during the transportation of the vehicle by any means of transportation, including the loading and unloading process associated with transporting the vehicle.
- Agency Repair: The insurance company is obliged to repair the damaged vehicle at any of the agency’s repair shops if the vehicle is one year old or less and the insured has a comprehensive insurance policy per his or her contract.
- Total Loss/Write Off of a Motor Vehicle: If the cost of repair exceeds 50% of the vehicle’s value or if the base of the vehicle (the chassis) is damaged, whether it is replaceable or not, or if the fixed parts such as columns are damaged and require cutting, tightening or welding, the vehicle is considered a total loss.
- Provision of a Substitute Motor Vehicle: The impacted party will be provided with a substitute motor vehicle or a cash amount not exceeding AED 300 per day for a maximum of 15 days, depending on the type of motor vehicle.
Comprehensive Car Insurance Excludes:
- Weight Overload: The policy does not cover accidents caused by weight overload, provided that it can be proven that this is the proximate cause of the accident.
- Use of the Vehicle Beyond Its Specified Purposes: If the vehicle is used beyond its specified purposes, the policy will not cover any damages.
- Violation of Laws: The policy does not cover damages if the violation is deemed an intentional felony or misdemeanour.
- Unlicensed Driving: If the driver of the vehicle is unlicensed in accordance with the relevant Traffic Laws, the policy will not cover any damages.
- Driving Under the Influence: The policy does not cover damages caused while driving under the influence of narcotics or alcohol that impact the driver’s ability to control the vehicle.
- Driving Outside the Jurisdiction: The policy does not cover damages caused while driving outside the jurisdiction set out in this policy, unless a rider is issued an “Orange Card” which extends coverage to the particular territory.
- Driving Off the Road: The policy does not cover damages caused while driving off the road, unless a rider is issued extended coverage including off-road.
Please note that the specifics of what is included and excluded can vary between different insurance providers and specific policies. Always read the terms and conditions of your policy carefully.