Insurance Authority: Vehicle insurance rates have not been increased 20 years ago

: 2/1/2017
Emaratalyoum: February 1, 2017

HE Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of Insurance Authority said, in response to a question from a member of the Federal National Council, Hamad Ahmad Al Rahomi, about the reasons for allowing insurance companies in the State to increase vehicle insurance rates, that some insurance companies are exposed to losses, noting that compensations of vehicle insurance reached, during 2015, more than four billion and 700 million dirhams, while the total investment in the insurance sector in such year was 39 billion dirhams.

“As regards the reasons that led to the changes in the vehicles insurance policy, it is established that the vehicles insurance policy includes all family members up to AED 200,000 per person, and that there are companies that have a problem in relation to the rates burning. Minimum rate has been set for insurance policies in order to protect the rights of insured, investors and shareholders of these companies, when these companies sustain losses. It is worth noting that insurance premiums have been determined 20 years ago and have not been increased since such date. On the other hand, there is an increase in compensation, rates and cost of treatment.” Al Mansouri added

“Insurance companies shall be committed to international insurance policies that did not previously exist, and to address the subject of total loss of the vehicle, pointing out that the Insurance Authority reviews the decisions on a regular basis, and will take into account the observations of the Federal National Council and the market in general, we must take the opinion of everyone.” Al Mansouri asserted

He said that more than 90% of the insurance industry complaints are related to vehicle insurance, which last year amounted to nearly 6755 complaint submitted by vehicle insurance policyholders.

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