Adding Medical Ambulance Service to Auto Insurance Protects Policyholders upon a Risk Incident
Abu Dhabi, May 25th, 2015
The Insurance Authority (IA) confirmed that the decision of Authority’s Board of Directors to add the medical ambulance and transportation service to the two auto insurance policies. Such addition will be made on issuance, renewal, or extension of any auto insurance policies as of the decision’s effective date on 28.02.2015.
The Authority explained in a press release published on May 25th, 2015 that the Authority’s Board had issued by the end of last year a decision regarding the amendment of some provisions of the Ministerial Resolution No. (54) of 1987 concerning the standardization of Motor Insurance Policies which ensures adding the medical ambulance and transportation service to the two auto insurance policies namely: Third Party Liability Motor Insurance Policy and (Comprehensive Motor Insurance Policy (against loss, damage and liability).
The statement added that the decision required the inclusion of this clause pertaining to medical ambulance service on issuance, renewal or extension of any motor insurance policy as of the Decision’s effective date on February 28th, 2015. It pointed out that the service name would be “Medical Ambulance and Transportation Service” not “National Ambulance Service”.
Under the Decision, an insurance company shall pay an amount in consideration of each incident of medical transportation to hospitals for an injured or deceased person due to accident occurred to such person by an insured vehicle.
The insurance company's obligation to pay this amount shall be for an additional premium determined by the company subject to a maximum amount of AED 50, permissible for the company to collect. However, some companies have not collected any amount for the emergency medical service because they primarily consider it a humanitarian service and falls within the framework of corporate social responsibility.
The IA commended the insurance companies that have dealt with this service from a humanitarian and social responsibility perspective and have not imposed fees or payments on its customers for this service.
The IA’s statement indicated that on basis of the above there is no justification for the companies to increase the rates of insurance policies by more than the set amount of AED 50 for adding the medical ambulance service.
The medical ambulance service provides a lot of benefits and advantages to the policyholders in the event of a risk incident in terms of transporting the injured and provide them with the necessary first aid, as well as providing a medical technical staff specialized in dealing with cases of injuries so that the accident does not entail complications for those who are wrongly transported.
This service also achieves several benefits for the local community and the competitiveness of the UAE insurance market aspects. The ambulance service will help provide ambulance stations in the different emirates of the UAE and enhance the effectiveness of first aid response, which will contribute to raising the level of medical and insurance services in the United Arab Emirates.
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