Third-party liability insurance is a type of car insurance that covers damages caused by the insured vehicle to others, including both persons and property. This type of insurance is mandatory in many jurisdictions, including the UAE, as it provides protection for third parties in the event of an accident. In this article, we will delve into the specifics of third-party liability insurance, referencing policies from Emirates NBD, AIG, and guidelines from the Central Bank of the UAE.
Emirates NBD, a leading banking group in the MENAT region, offers third-party liability insurance that covers damages caused by the insured vehicle to others. However, it does not cover damages caused to the insured vehicle or the insured individual. This means that if your vehicle is the cause of an accident, Emirates NBD will compensate for all damages caused to other parties involved but will not compensate for any damage caused to you or your vehicle.
AIG, a global insurance corporation, also provides third-party liability insurance. This policy covers the insured’s legal liability for death or bodily injury to any third party and damage to third-party property arising out of the use of the insured vehicle. It’s important to note that this policy does not cover loss or damage to the insured vehicle.
The Central Bank of the UAE, in its brochure, provides a comprehensive overview of third-party liability insurance. It explains that this type of insurance covers the damages caused by your vehicle to others, including both persons and property. However, it does not cover damages caused to you or your vehicle in the event of an accident while driving the vehicle. The Central Bank also outlines several exclusions of the third-party liability policy, such as damages that occur outside the country’s borders, damages resulting from floods, tornados, volcanoes, earthquakes, or nuclear explosions, and damages that occur to the insured, the vehicle driver, or individuals employed by the insured if they are injured in work-related incidents, unless additional coverage or an addendum to the insured’s policy is present.
While the specifics of what is included and excluded can vary between different insurance providers and specific policies, the core principle of third-party liability insurance remains the same: to provide protection for third parties against potential damages and losses caused by the insured vehicle. Always read the terms and conditions of your policy carefully to understand what is covered and what is not.
Third-party liability insurance typically:
Third Party Liability Car Insurance Includes:
- Damage to Third Party: Covers the damages caused by the insured vehicle to others, including both persons and property.
- Legal Liability: Covers the insured’s legal liability for death or bodily injury to any third party and damage to third-party property arising out of the use of the insured vehicle.
- Liability Coverage: Liability coverage will cover third parties when the insured is at fault for amounts that the insured or the vehicle driver is required to pay, including physical damage to others inside or outside the vehicle and material damage caused to others.
Third Party Liability Car Insurance Excludes:
- Damage to the Insured Vehicle or Individual: Third-party liability insurance does not cover damages caused to the insured vehicle or the insured individual.
- Damages Outside the Country’s Borders: The policy does not cover cases arising or emerging from accidents that occur outside the country’s borders.
- Natural Disasters: The policy does not cover damages that have resulted from floods, tornados, volcanoes, earthquakes, or nuclear explosions.
- Work-Related Incidents: Damages that occur to the insured, the vehicle driver, or individuals employed by the insured if they are injured in work-related incidents are not covered, unless additional coverage or an addendum to the insured’s policy is present.
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.