Motor Insurance

Motor insurance

Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

Coverage levels

1. THIRD PARTY INSURANCE - Covers

Damage to someone else's vehicle or property or injury to someone else in an accident. You need to pay for your vehicle.

2. THIRD PARTY, FIRE AND THEFT INSURANCE - includes

Third party cover + damage or loss by fire and theft to your vehicle.

3. COMPREHENSIVE - includes

THIRD PARTY, FIRE AND THEFT INSURANCE + repairs to your car.

Extra cover that some policies provide,

1. Death or injury - own / that of partner / other member of your family up to a limited amount.
2. Your personal belongings - stolen or damaged.
3. Your medical and legal expenses
4. Hiring a replacement vehicle.

You will need to compare

• What each polices covers / exclusions ( example excluded allowing drivers under 21 to drive your car )
• The amount of excess. This is the first amount of any claim, which you need to pay. Some policies would allow you to pay higher for lower premium. ( Premium is cost of insurance policy )
• Discount offered examples a 10% discount for older drivers.
• No claim bonus - Need to know how much you no claim bonus would reduce if you made a claim.
• Policy restrictions - for example only named drivers are covered.

Things to remember

• Motor insurance polices normally run for a year. Your insurer does not have to send you a notice reminding you to renew, but most do send.
• When you take out or renew motor insurance, you will get a cover note at first. This will be valid for 30 days or until you get a copy of the full insurance certificate. It is a criminal offence to drive without a cover note or a full insurance certificate.
• The police can ask you to show them your insurance certificate or cover note. Failing to do so they would give you seven days to so at a police station of your choice or if you are stopped under the "fixed penalty system" they would specify the station. If failed to produce the documents in seven days, police can seize your vehicle and sell it.
• You can cancel an insurance policy if you SELL / STOLEN / WRITTEN OFF. You should check your policy to see if you have a right to refund of your premium.

When you would not be covered?

• Someone else drives your car not included in the insurance policy. You are driving someone else's vehicle.
• Unroadworthy -Third party claims should still be covered.
• Bought a stolen vehicle- Third party claims should be covered.
• You do not have a valid driving license - Third party claims should be covered.
• You are partly to blame for an accident, it may pay part of your claim.
• Your insurance does not cover all loses, for example time off work, personal injuries, vehicle hire, or excesses. You may be able to claim from the other driver, but you may have to go to court and may need legal advice.
• Your insurer has gone out of business and is unable to meet their claims. You may be able to get compensation from the Financial Services Compensation Scheme (FSCS).

How to make a claim if it is stolen?

• Tell insurer and police immediately. Your insurer will wait a few weeks before settling your claim to allow time for the car to be found.
• If you were paying in installments you may have to carry on paying even though you have no vehicle to insure.
• Lost and found- belong to insurer
• Lost- pay you the market value.This may bring the policy to an end depending on the policy.
• Refund of remaining premium provided it is included in the policy.
• Check your policy - hiring another car during this time.
• You can negotiate.

How to make a claim if your car has been in an accident?

• Tell your insurer about the accident straight away even if you do not intend to make a claim.
• Never admit that it was you fault at the scene of the accident, as it could make your policy invalid.
• Exchange
  Names / addresses / insurance details with drivers of other vehicles involved. Details of any independent witnesses.

To make a claim from the other driver

• Write to them saying that you intend to make a claim from them. Tell your own insurer that you are claiming from third party.
• If the driver was uninsured or cannot be identified the Motor Insurers Bureau (MIB) may be able to settle the claim.

How to make a complaint?

• Write to insurer first.
• All insurers must be covered by the rules of the financial watchdog, Financial Services Authority (FSA). You can take it to the Financial Ombudsman Service.
• To court.

Policy

• Name of insured
• Nationality /age
• Customer Name
• Date insurance from / to / time
• Make and model
• Year of Mfr.
• Type of body
• Seating capacity Including driver
• Colour
• CC/ HP
• Engine Number
• Registration Number
• Chassis Number
• Insured's Estimate of Value of Vehicle
• Type of cover
• Additional covers if any
• Geographic area
• Limit of liability :
  1. Max authorized repair limit - as per clause 3 of section 1. Repair due to an accident covered under the policy. Should not exceed the repair limit.
  2. Company's max liability clause 1 of section 2.
• Licensed Driver
• Limitations of use
• Special Conditions

Section One: Loss & Damage

1. The company undertakes to indemnify the insured - for Loss or damage to the insured vehicle its accessories and spare parts.
   • If the loss or damaged caused by collision/ overturning /any accident/ mechanical breakdown/consequent upon wear and tear
   • Fire / external explosion/ self ignition/lighting/ thunderbolt
   • Burglary or theft
   • Malicious act of any third party
   • Whilst in transit ( process of loading and unloading incidental to such transit ) by road, rail, waterway, lift or elevator, related to said transportation.

2. Shall pay in cash - or shall repair, reinstate or replace. Company will not exceed the replacement value of parts lost or damaged + cost of fitting or fixing such parts - unless the insured elects the company to pay him the mount in cash.

   If the insured request for a new parts. The insured is liable for depreciation percentage as mentioned in schedule no 1.

   Rental vehicles and Taxi - schedule No 2 attached to ministerial degree.

   ( indemnify : give security for )

3. The Insured has the right to repair - provided such repair does not exceed the Authorized repair limit mentioned in the schedule.
4. Motor vehicle is immobilized - company will bear the reasonable cost for protection and removal to the nearest repairers / delivery to garage with the country.
5. Lost or sustained - if the repair cost shall exceed 50% of its value -insured value as agreed after deducting depression @ 20 % per annum of the insured value as stated in the schedule for the first year and parts of year shall be calculated on pro data basis.
   5% 1st to 3rd
   10% 4th to 6th
   15% 7th to 9th
   20% 10th to 12th
   

Exceptions to Section One

Company will not pay any compensation in respect to :

1. Consequential loss affecting the Insured vehicle or decrease in the vehicle value - use age, impairment, failure,breakdown of mechanical or electrical equipments.
2. Damages - overloading or carriage at any time of greater number of passages- were the cause of the accident which result in lose or damage to the motor vehicle.
3. Damages to tires - unless is occurs at the same time as the damage of the Insured vehicle.
4. Loss or damages -
   • Use for purposes otherwise than in accordance with the limitations of use.
   • Violation of the law- involves a criminal act or willful act as followed as defined in articles of(28) and (29) of the punitive Law under the Federal Law No (3) of 1987.
5. Damage resulting from accidents - being driven by an unlicensed person as in accordance with the traffic and road act. OR Driving license being cancelled by court or as per traffic law.
6. Damage - whilst the driver is under the influence of intoxicating drugs or alcohol or hallucinating drugs his ability to control the vehicle.

Section Two

Third party liability

1. The company shall be liable to compensate the insured in event of accident- subject to the limits specified in this policy -against all sums which the insured shall become legally liable to pay as compensation for:
   1. Death or bodily injury to any person including the passengers in the vehicles except the insured or the driver at time of accident and their families, spouse, parents and children and the employees if they are injured during work hrs or as a result of their work , considered as passengers whether inside the vehicle or mounting or dismounting from it.
   2. Damages of materials and property- except those owned by insured or the driver at the time of accident or property held in trust / in their custody or control.
2. The insurance is extended - to cover the liability of each licensed driver.
3. Company shall be liable to pay - the court orders / awarded sum to the plaintiff including judicial expenses and charges ( except penalties and fines ) pay rightful claimant.
4. Event of death of any person entitled to indemnity - his heirs
5. More then one person - policy shall apply to the aggregated amount of indemnity due to all persons.
6. Pay all costs and expenses incurred with its prior consent.
7. Defend the insured in any court of law - subject to indemnity under this section.

General Exceptions

1. The policy does not cover loss or damage or third party liability arising from accidents in the following cases,
   1. Accidents outside the geographical area specified in the policy.
   2. Accidents - directly or indirectly- flood ,storm, hurricane, volcanic eruption, earthquake, other convulsion of nature, invasion, act of foreign enemies, hostilities,warlike, strike, riot, civil commotion, mutiny,rebellion, revolution, insurrection, military, usurped power, confiscation, nationalization, ionizing radiation, contamination by radioactivity from any nuclear fuel or any nuclear waste from combustion of nuclear
   3. Outside the public road.
2. This insurance does not cover any liability due to an agreement.

General conditions

The policy does not cover loss or damage or third party liability arising from accidents in the following cases,

1. Policy and the schedule shall be considered as one contract.
2. Every notice or communication under this policy shall be delivered in writing.
3. Insured -all reasonable steps to safeguard the motor vehicle from loss or damage to maintain in a roadworthy condition. The company has the right to examine such motor vehicle. In event of accident or breakdown vehicle shall not be unattended., to prevent further loss or damage, if such motor is driven before necessary repairs are effected, any extension of the damage or any further damage - excluded from the scope of indemnity granted by this policy.
4. Sole and absolute owner shall not make any agreement to let upon hire the insured vehicle with out the written permission of the company obtained first.
5. After the happening of any event giving rise to a claim or series of claims under clause 1(b) of section 2 of the policy, the company may pay full amount . Company will not be responsible for any damage alleged action or omission of the company in connection with such defense,settlement or proceedings. Shall not be liable for any costs or expenses whatsoever incurred by insured or any claimant or other person after the company shall have relinquished such conduct.
6. 1. The company may cancel Section One subject to serious reasons by sending 30 days notice by registered letter to last known address., in addition to advising the Ministry of Economy and Commerce about the reason of cancellation. Premium will be paid less pro -data portion. Cancel section 1 in seven days written notice provided no claim has arisen during the current period.
   2. Neither the company or insured has the right to cancel section 2 of this policy as long as it is valid. The company will pay : less the short premium due provided no claim has arisen during the validity of policy. Will pay in all cases of cancellation, the balance premium due to prior to expiry of notice period. Company shall not be liable to pay or contribute more than its rate able proportion of any such loss/ damage/ compensation/ cost or expenses. Any notice of claim is to be fully in accordance with requirements of Clause 2 & 5 of the general conditions of this policy.
7. Company shall not be liable to pay or contribute more than its rate able proportion of any such loss/ damage/ compensation/ cost or expenses.
8. Any notice of claim is to be fully in accordance with requirements of Clause 2 & 5 of the general conditions of this policy.
9. Company may claim back-from the insured or driver for the sum paid as compensation in the following cases:
   1. Proven insurance contract has been made on false statement by the insured.
   2. Using the motor vehicle for other purposes in policy / exceeding no of passengers / overloading more then permitted limits / load not stowed correctly / exceeding the dimensions of width or length or height permitted.
   3. Violation of the law if it involves criminal act.
   4. Driver insured or person driving with his permission has no driving license for the vehicle he is driving as per traffic and road act..or license cancelled by court.
   5. If proved that the accident death or bodily injury - intentional act by the insured.
   6. Under the influence of drugs or alcohol
   Will not effect the rights third parties towards the insured.
10. Any other persons right of to recover any due amount by virtue of law.
11. Any claim - is time barred if not submitted within three years from the date of accident.
12. The company will cover other damages and injures as agreed which are not mentioned in this policy.
    1. Death or bodily injury to any person including the passengers in the vehicles the insured or the driver at time of accident and their families, spouse, parents and children and the employees if they are injured during work hrs or as a result of their work , considered as passengers whether inside the vehicle or mounting or dismounting from it.
    2. Damages of materials and property- those owned by insured or the driver at the time of accident or property held in trust / in their custody or control. Any dispute - jurisdiction of United Arab Emirates Courts.