The unified motor policies behind UAE car insurance

UAE insurers must issue motor cover on one of two forms attached to Insurance Authority Decision 25 of 2016: the Loss and Damage policy and the Third Party Liability policy. A form may be changed only in favour of the insured or beneficiary.¹ This page covers version 2 of both forms, consolidated to 18 January 2021, on the CBUAE Rulebook, as of 4 November 2026. The Arabic text reads the same on the natural disaster wording and on the terms shown as not stated in Table 3.^2,3

Two forms sit under one decision

Decision 25 took effect on 1 January 2017 and the Rulebook shows it as In-Force. It has been amended by Decision 42 of 2017 and Resolution 26 of 2020. Article 9 repeals Ministerial Resolution 54 of 1987 on unified motor policies, and Article 11 kept earlier policies in force until they expired. Takaful insurers follow the same two forms using takaful terms.¹

The tariff applies Table 1 to third party policies and Table 2 to the Loss and Damage and Third Party policies jointly.⁴ The CBUAE uses “comprehensive insurance” as the everyday name for a policy against loss and damage.⁵ Its consumer brochure defines comprehensive as third party liability plus loss and damage.⁶ The two covers are compared at comprehensive and third party.

It may not refuse loss and damage cover, refuse renewal, or set different rates and benefits because of age, sex, residence or holding a licence for under one year, where the applicant holds a valid licence. The exception is technical or actuarial reasons, or the insurer’s previous experience with that insured. The insurer must give those reasons to the Authority on request.¹

Decision 25 also sets claims duties

These duties sit in the decision, outside the policy forms.¹ The full sequence is in the claims process guide.

The forms say nothing on many cover topics

Not stated means the form does not mention the topic. It does not mean the topic is excluded.^7,8 The table describes the baseline text at this version, not any insurer’s schedule.

The flood rows have their own page, because the definition of Natural Disaster turns on a decision by the concerned authority and the CBUAE made a statement in 2024. See flood damage. The battery row is expanded at electric cars.

Insurers add cover through riders

Chapter One para 05 lets the parties agree extra cover by rider for an additional premium. It names two examples: property of the insured or driver, and damage outside the roads.⁷ The third party form allows new cover or higher limits by a separate policy or rider (Chapter One para 07b).⁸

The tariff requires additional cover to be stated in clear wording, in a different colour or by addendum (Article 3(3)). It also bars an insurer, agent or broker from taking any additional sum without a resolution from the Authority (Article 3(4)).⁴

Agreements in the other direction are limited:

• An external agreement that reduces the cover is void (Loss and Damage, Chapter One para 03).⁷
• A claim may not be denied for reasons unrelated to the accident, such as age or gender (Chapter One para 07).⁷
• The third party form adds “the date of acquiring the driving license” to that list (Chapter One para 07a).⁸

The forms fix these periods and amounts

Cancellation under the third party form works differently and is set out in the cancellation guide. Deductible rows are at excess.^7,8

The tariff sets reductions outside the forms

The tariff applies to both covers (Article 2(7)). Its figures are regulated limits, not prices.⁴ Decision 41 of 2017 added paragraphs 3 to 9 of Article 2 from 1 January 2018.⁹

Where more than one reason applies, only the highest reduction counts (Article 2(6)). The insurer must immediately provide a free certificate of insurance experience, electronically or in writing (Article 2(4)).⁴

Paragraph (e) came from Resolution 17 of 2020, issued to mitigate the effects of COVID-19. Its Article 3 applies it from issue “until the end of the period of Coronavirus” as decided by the competent authorities.¹⁰ The Rulebook tariff text still shows paragraph (e). Article 2(3) opens with “may grant”. The English of paragraph (e) says “shall be granted”, while the Arabic of the item has no such verb (our reading).¹¹ Ask the insurer or the CBUAE whether the discount still applies. See no claims discount.

Later laws and time limits sit beside the forms

The Loss and Damage form sets a 3-year limit for a lawsuit (Chapter One para 11).⁷ Other instruments have their own limits.

• Legal base. Both decisions cite Federal Law 6 of 2007. Decree-Law 48 of 2023 repealed it and kept regulations issued under it, so far as they do not conflict, until replaced.¹² Decree-Law 6 of 2025 repealed Decree-Law 48 and keeps regulations issued under it in force until replaced.¹³ The Rulebook status is In-Force. How this applies to these two decisions is not stated in the text.
• The Rulebook. It says it has no legal effect and that instruments issued through formal channels such as the Official Gazette prevail.¹⁴
• Cabinet Resolution 174 of 2026. Effective 1 January 2027. Table 6 sets its insurance rules beside today’s.¹⁵
• Time limits. The forms say three years for a lawsuit, and the Third Party English and Arabic differ on the start. Civil Transactions Law Art 966, effective 1 June 2026, has its own 3-year rule.¹⁶ How it sits with the forms is not stated. A complaint to Sanadak has its own time limit in Regulation 4.4.1.¹⁷ The claims process guide keeps these apart.

A complaint about how an insurer applied a form follows the order in the Sanadak guide.