New Unified Motor Insurance systems to provide wider coverage and flexibility

We are glad to update you with the recent changes to motor insurance in Dubai approved by the insurance authority.

“Approving the new system represents a paradigm shift in the development of the organizational foundations and technical regulations of the UAE’s insurance market and vehicle insurance sector,” Al Mansouri said.

New Law brings more clarity into motor insurance sector with two separate insurance policies as follows

  • Third Party Liability or Civil Liability
  • Loss and Damage

According to the new system, vehicle insurance has been categorized as per the insurance type through two separate documents.

The first is compulsory and related to third party liability in compliance with the traffic laws. The second is related to loss or written-off vehicles. It is an optional policy for motorists who want to insure their vehicle instead of getting comprehensive insurance in one policy document covering the two types of insurance.

The new system aims to achieve the highest standards of transparency in line with the demands of the local market and national economy, the authority said.


Main Highlights of the changes includes

  • Increased Third-party liability limit from AED. 250,000 to AED. 2 Million
  • Provision of Rent-a-car of up to AED .300 per day for 10 days on a Third party liability policy to compensate for affected party
  • Compulsory repairs at the authorized dealers in case of accident in the first year of purchase of a brand new vehicle
  • Suggested amendments to unified motor policy with regards to the policy excess/deductible
    • Maximum deductible of 10% of claim amount in case of underage or novice drivers for private vehicles
    • Maximum of 15% of claim amount in case of public vehicles and taxis
    • Maximum of 20% of claim amount in case of sports and modified vehicles
  • In case of the death of one member of the insured family, or the driver of a rented vehicle, or public vehicle, or a driving-learning vehicle, the insurance company is liable to pay Dh200,000 for each dead person.
  • In case of injury, the liability of the insurance company will be paid according to the extent of the disability.
  • The insurance company is obliged to repair the damaged vehicle and pay the market value of the vehicle if the vehicle repair cost exceeds 50 per cent of the car’s market value, provided the insurance company’s liability does not exceed Dh2 million
  • Third party liability extended to cover family members

For any clarifications on the new insurance policies please contact our motor underwriting team.


We're proud to have been awarded the prestigious title 'Chartered Insurance Brokers' by the Chartered Insurance Institute (CII). The award of Chartered titles is strictly controlled and is an objective measure of high standards of professionalism...