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World Expo 2020: The impact it will make in the lives of an ordinary citizen

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The Burj Khalifa in 2013 wanted to celebrate Dubai’s Victory to host the 2020 World Expo and this small but highly enterprising country did it in style and How!, by making a ginormous crowd of well wishers witness the fireworks from their tallest building that was telecast the world over!

It is a widely accepted and expected too that Dubai does everything in style and gigantic proportions. Dubai is leaving no stone unturned as this World Expo 2020 will be the first large-scale international event that is about to take place in the Middle East. An event with such magnitude will bring a lot of advantages for Dubai and UAE in general, especially for its real estate sector which has been pretty sluggish the past 2 years. 

Quick facts about the World Expo:

  • A once in 5 years mega event that is spread over a six-month period.

  • Almost 130 countries participate in this expo to showcase their inventions, according to the motto set for every expo.

What’s New and Trending:

5G network makes its debut:

Dubai will be pronounced as the first nation amongst the Middle East, South Asia, and Africa to unveil the future cellular technology – the much awaited 5G at this event. The technological aspects are said to run on this fast-paced network, as the event is set to attract around 25 million visitors. The people visiting the event will also be thrilled to view a 65m tall digital sphere wrapped around them that can display videos and pictures all around, which can also be enjoyed by the people outside the sphere.

Soon, 5G will be made available across the Middle East and every Smartphone user gains the advantage of it. 5G helps users with faster transactions, unlock new features and much more.

Enhancing Infrastructure:

For the mega event, the UAE Government started funding new road and rail links to manage the influx of tourists and the locals. The Dubai International Airport is about to have a 60 percent rise in the number of stands, as the number sums up to 230 from 144 which is currently present. In addition to this, floor space is said to increase to a whopping 675,000 square meters in the terminals. As estimated, this would accommodate the millions that are about to land here in 2020.

Many new hotel projects are in full swing to provide proper hospitality to every visitor. Dubai’s roads and transport authority announced that there will be an expansion of metro lines from Dubai Metro’s Red line to Dubai World Central. This is estimated to be worth of 1.36 billion USD.

These improvements will be of huge benefit to the citizens as these will be considered as enhancements around them which will ultimately profit them.

Positive effects on the property market:

According to a report in 2018 [Source: JLL Real Views], the real estate market in Dubai witnessed slow growth with global currency and oil prices also taking a beating which further contributed to the fall in the real estate market.

But this could drastically change, as the event will rope in a lot of supplies to the market which would be a long-term investment for the country.

Life after the Expo:

Unlike other countries, Dubai has a Vision to use the Infrastructure of the Expo as a home to millions of people in the UAE. It aims at giving well established, affordable homes with family-friendly amenities that can enhance the quality of life.

Around 120,000 new homes are about to be built by 2020, with new developments around the site. As the site is positioned as a residential community with three economic sites – Dubai World Central, Kizad and Jebel Ali Port, it is expected to bring in a residential investments as all the necessary facilities and infrastructure would already be available.

This will be home to 1 million residents and 500,000 jobs with Developers already initiating to transform certain important tourist sites that include the Dubai Water Canal, Museum of the Future, Deira Islands, Dubai Theme Parks, Jewel of the Creek and other projects.

Are you too young for life insurance?

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Are you too young for taking an insurance policy? It’s a good question that was posed to many a teenager and most of them responded with, “I am healthy. I am alive.” Unfortunately, they do not realize life is uncertain. A 2017 survey conducted by Insurance quotes.com has proved this statement and it was found that 65 percent of the young adults do not own life insurance and almost 71 percent of them said it wasn’t necessary for them because they are healthy. 

Awareness is key

Many parents in the UAE are not aware of the fact that they can enrol their toddlers for life insurance, which is the best way to safeguard their children. There are a lot of protection plans for children. Right from the age of 1, they are eligible for children protection plans which cover their education as well as their health. They are designed in such a way to help a child’s future education needs at a minimal premium.

In the past decade or more, many insurers have devised policies that offer insurance right from the tender age of 1 till the age of 75. It is heartening to notice that families are opting for this.

Many may ask why a one-year-old child needs life insurance. An insurance policy taken by the head of the family for his children is definitely not for the money that he can bag if some untoward incident happens to the child but, for the simple fact that premiums are far lower at that age compared to anyone taking a fresh insurance policy at the age of 30 or 40 with ailments or diseases always around.

The other reason that insurance is recommended to be taken at a young age is, there are many benefits that come with that. It could be a free health check-up, scholarships or even can stand as collateral or a good credit score.

Pay the premiums on time every time

You can consider taking a whole life insurance policy, which can back you up as long as you pay the premiums. You can select the mode of premiums which can be paid either monthly, quarterly or even annually depending on the monthly earnings of yours.

The basic Whole Life Insurance policy can be considered though other options are available. As you get older, you will have a lot of other requirements that need to be protected. Anything as such can be covered by adding riders to your existing policy.

To summarize, life insurance policies are a must for every individual and nobody is considered too young for a life insurance policy as there is one for everyone. By obtaining more knowledge about the policies, you can be able to narrow down on the list of policies according to your requirements and for your family.

Quick Steps to Stake a Claim for Auto Insurance in UAE

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Making a claim for your automobile can be a nightmare if it’s your first time. The negotiations, the white sheets that you need to sign and the different terms that are mentioned in them can make you very stressed adding to the the stress of an auto accident you are already in.

Furthermore, you can also have issues with your Insurer whether they are doing the math right and not safeguarding their interest only. Before landing in such a situation, having some knowledge can help you get through it.

Here are some of the things you need to know before making a claim for auto insurance:

Know what’s covered:

It’s best to know what your policy covers. This gives you a whole idea of what can be claimed and what cannot be. Do go through the policy thoroughly (even the small print which everyone tends to ignore or skip as it is too fine a small print).

Next, the terms that you must be aware of:

Insured Declared Value (IDV) – which is the amount the insurer promises for your vehicle which changes every year at the time of renewal.

Zero Percent Depreciation Value – Check whether the insurance policy has this line, which means there will be no depreciation to your vehicle’s tires and alloys.

PA Cover – This specifies an amount that can be claimed if the person is injured or dead in an accident.

Required proofs and documents:

  • The police report is mandatory after an accident

This is a mandatory document when you happen to be in an accident and there are any casualties from your side or to the other person who was involved. It is to be noted that in Dubai, a mobile application called the “Dubai police mobile app” can help you file a police report in a simple and easy way.

This report will be required by both the police and the insurer, as it covers the details about the accident as well as the exact information of the party/parties involved.

  • Vehicle registration certificate:

This is one important proof which details about the vehicle from the purchase date to the engine number.

  • Driver’s license:

As everyone knows, this document is the ideal proof which specifies whether a driver is legal to drive or not. The legal age for driving in UAE is 17.

Informing the Insurer as soon as possible:

Before making a claim, you need to inform the insurer about what exactly happened. This is the most important step before making a claim. This will make the insurer prepare documents necessary for the recovery. It would even better if you can take photos of the accident spot, the damages to your vehicle/other party and their vehicle thus ensuring there is a chain of evidence that is not mixed up.

You will be asked by the insurer to submit the police report and the policy number that can be found on your registration card. You will need to fill in a claim form provided by the insurer which will take care of the claims promised by them. After analyzing your policy and the damage that happened, the insurer would take the necessary steps.

The insurer would ask you to go to the nearest service center and give the vehicle for repair.

From this point onwards, the insurer would take care of the process.

Do not sign any documents without any prior knowledge:

Always clarify before signing, what the document is and what terms is being stated. You can approach the insurer for a better understanding of the document if in doubt.

Keep the documents for future reference:

Always keep proofs such as pictures and documents of the accident that took place in a safe place, as you might need them for future reference.

Though the Government makes every effort to ensure there is no mishap or accident involving vehicles or persons, it is unfortunate that these do take place and it is prudent to be safe than sorry. Be insured and be safe. Always

Top 5 reasons to use a credit card

Top 5 reasons to use a credit card

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Credit cards are now a necessary accessory for most Dubai residents, as it not only makes shopping easy, but they also serve as a backup when there is a need for immediate purchase. Using them for online transactions can save money by availing cashback, discounts. Every credit card in uae has its own perks and you can opt for one based on your lifestyle and usage.

Here are the top 5 reasons why you need a credit card:
Easy instalments:

Between paying your house EMIs, Insurance, Groceries and fuel, this could drain your salary to a large extent leaving you with enough to barely save for the rainy day. Enter Credit Card. Credit Cards is one perfect alternative to save your money, as many credit card companies/banks provide instalments with lower interest rates. Some banks even offer zero percent interest for certain products. Most people even prefer this to easily manage their monthly expenses.
Banks provide you with flexible interest rates and duration starting from 3 months to even 2 years. This benefits customers to pay their instalments without hurting their pockets.

Maximise on cashback:
With the trending cashback offered by companies or credit card companies at the time of making a purchase, it gives an extra recharge to the card owner who feels he is getting more value for money. Say, for instance, if your credit card offers a cashback of 10% on fuel, then for every 100 AED spent on fuel you would be credited with 10 AED in your coming statement. But these cashback depend on the type of card the customer holds, as every card has its own value.

Travel with air miles and avail travel discounts:
If you are a frequent traveller, mostly by air, then credit cards can help you save money on your travel expenses too. Credit cards air miles can be accumulated to avail discounts on your air tickets, redeem them for retail vouchers etc. Surprisingly, you can even fly to your favourite destination for free if you have accumulated that many miles. Other perks might include complimentary airport lounge access, discounts on accommodation or even hire a private car for a very good deal.

Exclusive offers and reward points:
With the right credit card, you can avail terrific offers to not just products but also to services such as spas, and restaurants. Some offers are exclusive to certain cards, like the platinum cards offered in many banks. Banks also have their own apps that provide these exclusive offers to their customers which includes services like booking a movie or a resort maybe.
Apart from offers, banks also offer reward points to customers which can be redeemed later with any other products like phones, watches or even bigger items like refrigerators and air conditioners for free or for a discounted price. Banks actually started this scheme for customers who use credit cards often, thus to make them their regular customers. But one should make sure to use the credit cards reward points before it gets expired.

Savings on entertainment:
Since leisure activities have grown by leaps and bounds, even a simple outing like a movie and a lunch will dent the wallet. Using a credit card at movies, entertainment zones and paying for your yummy snacks, you can get discounts for all of them to make your day .Even some credit cards help you get offers like free valet parking on credit cards in malls and restaurants.
Don’t miss out any offer that you get from card companies and never forget, Customer is always King in UAE.

Auto Insurance – What to look for while shopping?

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Some tips before buying an Auto-Insurance policy

According to the UAE RTA law, it is mandatory for all vehicle owners to get an auto insurance cover, which can serve as a helping hand for you in case of any calamities.

Everyone knows how to buy an insurance policy or renew one. But, before you end up buying one, ask these questions that will help you zero in on the best policy for your car and wallet.

Know your Insured Declared Value (IDV)

Abbreviated as IDV, it is the highest value that the insurer guarantees the customer in case of theft or complete damage to the vehicle that can’t be repaired.

Simply put IDV = Manufacturers listing price – Depreciation value.

The manufacturers listing price denotes the ex-showroom price of the automobile, which doesn’t include the registration and other add on costs, whereas the depreciation value refers to the loss of value of the vehicle with time.

Within six months of your purchase, the value depreciates by 5% which leaves you with 95% of the amount that can be claimed. The depreciation rate rises every year as the vehicle is subjected to wear and tear.

Look for a B2B cover and comprehensive cover:

Don’t forget to select the Bumper-to-Bumper add-on, as it adds zero depreciation value to your vehicle. This means that the insurer is liable to pay the total cost for your repairs. Even though it is a bumper-to-bumper policy, the engine and the gearbox do not fall in this bracket.

Another important fact we fail to note is that the B2B coverage is valid only for a period of 5 years, even if you renew it again. This is basically the strategy of insurance companies to minimize losses.

Comprehensive insurance would cover your vehicle if it is destroyed, stolen or even dented. It is an add-on as well.

Opting for this insurance keeps your car insured even when you drive to countries such as Oman, Bahrain, Saudi Arabia, Kuwait, and Qatar.

Understand about third party insurance and its coverage:

Third party insurance made mandatory by UAE is a plan that covers the damages caused to an anonymous person, vehicle or property which includes grievous injury, disability, and death.

Reduce your premium with No claim discount:

No-claim discount (NCD) is offered by insurance companies to the customers as a percentage of the own damage premium as a reward if they didn’t make a claim. 10-20% can be claimed while renewing and if they have a good driving record, the insurer can even offer a discount of up to 50%.

For instance, if you have made zero claims for your car and you’re planning to buy a new one. Then, the bonus that you have earned with the old car can be used to reduce the premium for the new car to a certain extent.

Personal accident covers:

Personal accident is usually an add-on cover with a car insurance policy which can be purchased by paying a certain premium. This provides you with adequate protection for physical loss or disability which can also help you out financially.

And finally,

Comparing premiums:

Having discussed other factors, the last part and most important factor is – price. Many insurers differ in cost and there could be policies that are sold cheap. Compare, keeping in mind the above factors before you pay.

Go for an Auto Insurance policy which meets all your requirements and benefits you the most.

Life Insurance – Why do you need one?

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Allow me to tell you this interesting fact. According to Friends Provident International (FPI) Survey conducted by YouGov in 2018, 51 percent of UAE residents do not have a Life Insurance!

Of this lot, 36 percent said it was too expensive while 30 percent of respondents were not familiar with the concept of life insurance. Another 39 percent said they were not familiar with critical illness insurance.

The future is undoubtedly unknown and anything might happen as we hear and read people die of sudden illness or a prolonged illness or even meeting with a fatal accident leaving their family financially unstable or in some cases in ruins.

So, what is the best way to safeguard them?

Taking a Life Insurance Policy is the answer for you.

Even though paying premiums for life insurance policies can be expensive, the support they provide at critical situations eases and make us realize that the monthly installments paid are never a waste.

Read this article to find out….

Securing your family and your hopes:

Opting for life insurance can your safety net in times of any financial emergency, be it paying for your child’s education or assisting your spouse financially even if you’re not there to help them out.

Essential Benefits Plan (EBP) is the most basic health insurance plan for the residents of UAE that offers coverage to any treatments, emergencies or even maternity. This has been now mandated by the government for every citizen in the country. It has an annual claim limit of AED 1,50,000.

For non-working dependents:

SANAD Health Insurance plan is only for non-working dependent individuals carrying a Dubai resident visa. It won’t be requiring any eligibility checks, declaration or medical history. You only need the proof for dependency for approval of the SANAD program which will be activated through the Emirates ID of the individual insured.

Critical illness, on the rise:

A study claims that the average age of critical illness in Dubai is 48 as of 2018 [Source: Gulf News]. Despite owning general health insurance, the need for residents to opt for an income protection plan is inevitable.

Critical illness cover is a living benefit to customers being diagnosed with a predefined illness such as cancer and bears an age limit of 59 to avail one. It helps them meet other requirements such as rent, cost of travel for any advanced treatment than the most expensive, treatment costs and medication which will be taken care by the general health insurance policy. You may not get the whole benefit from the insurance company if your critical illness is caused due to:

  • Any genetic disorder

  • Tobacco or drug abuse

  • HIV infection

  • Self-intentional injuries such as suicide

Flexible for your needs and saves taxes:

There are three major types of insurances offered:

  • Level term insurance provides protection for a specified period. It will expire and the coverage will end if you outlive your policy.

  • Whole of life term pays out a lump sum whenever you die. It is expensive when compared to level term, and it pays out premiums till the age of 95.

  • Decreasing term puts forth similar conditions as level term insurance, but the amount reduces as the policy matures which makes it the cheapest of the three.

The policy which we feel is more credible can be chosen.

Irrespective of what plan you buy, you can save taxes by enrolling in a policy.

Life is uncertain: 

You may be young and healthy now but if you suddenly fall ill, you may not be eligible for a Life Insurance policy. Therefore, it is important to buy one when you are young because it remains in force if your health deteriorates later on.

Riders, which are add-ons can be selected to personalize your policy. For instance, the accelerated death benefit rider allows the policy owner to avail a portion of the death benefit coverage for any treatment purposes on submission of medical bills to the insurance company.

Top-ups can be another option which covers all treatment costs other than riders which cover the same for only a few illnesses. They also carry a cheaper tag and needs to be bought separately other than the Essential Benefits Plan (EBP).

To sum it up, investing in a life insurance policy at an early age gives a host of benefits, reduced premium and tax savings too. Of course, the peace that your family gets knowing the earning member and others are insured is beyond compare.

Car Insurance – Know the jargon..

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The Insurance world is filled with special terms or expressions that only a few outside of it might truly comprehend. It might be difficult as a policy holder to understand what is really being communicated by the Insurers when they use these jargons that fly right over the top of your head. Thus, we bring to you a comprehensive decoded list of jargons used in the space of car insurance, which can aid you to better understand your Insurance policy and communicate effectively with your insurer.

Insured Value: This is the amount of money that your car is valuated at. Suppose you buy a car worth Dh 90,000. Your insurer might only offer you a cover of up to, let’s say, Dh 80,000. This means that even if your car is worth more, you would get only Dh 80,000 if you write your car off. Most people tend to under-insure their car to save some money on their insurance premiums. However, it is always advisable to Insure your car for as much as its true worth is.

Adverse Selection: Though this is a term that you would not encounter as much while applying for insurance, it is worthwhile knowing what it really stands for. Insurance companies keep a tab of the different kinds of people buying their insurance policies. To bring about an analogy, consider the case of health Insurance. A random 20-year old healthy person might think “Why should I pay Dh 200 every month towards Insurance when I am fit and fine. I don’t need a policy”. On the other hand a 70-year old ailing person might feel, “Wow. I pay just Dh 200 a month and all my bills would be taken care of. I am definitely buying the policy”. This kind of “adverse selection” by the population might put the Insurers at great risk of incurring huge losses as they must make frequent pay-outs towards claims. Thus Insurers carefully analyse the profile of a customer like driving history, traffic records and other factors while selling insurance policies.

Agency Repair: Authorized car dealers and service centres usually charge higher than others for spare parts and servicing of cars. So, if you want an Insurance cover that pays for such services, you would have to shell out a little more for your policy.

Excess: While making a claim, the entirety of the amount quoted by the service centre for repairing your car will not be settled by the Insurer. A small amount of money should come out of your own pocket, (called as ‘Excess’), before your Insurance kicks in. However, you can control this amount by choosing to pay a higher premium.

No claims discount: Suppose that you have not made a single Insurance claim in the past year. Your Insurer acknowledges this fact and provides you with a discount on your premiums for the next year. This is called as a ‘No-claims discount’.

Third Party – Liability Insurance: This is the minimal form of Insurance required for any vehicle. Through this Insurance, the provider pays only for damages to a third party caused by your car. Damages to your own car will not be covered. Every other form of insurance, such as comprehensive policy, comprehensive with add-ons, etc., builds on top of the Third party-liability insurance.

Depreciation: Your car’s insured value will not remain the same for the entirety of the period for which you wish to insure. Every year, the car will be devaluated by a fraction of an amount keeping in mind the age of the car and the associated increase in maintenance of the vehicle.

Black box: Although not fully implemented in the UAE, the Blackbox is a device that would be onboarded on your vehicle by the insurer to measure how you accelerate, brake and monitor other driving habits. This will in turn determine future aspects of your policy.

Foreign Extension: If you wish to keep your car insured even while you drive out of the country, you must purchase the foreign extension add-on of a policy for an extra-cost.

Totaled: If the estimated cost of repair costs exceeds the value of a car, then the car is considered to be ‘Totaled’ and the Insurer will pay out the market value of the car to you.

Indemnity: It is the basic principle by which an Insurance holder is put at the same financial position as before the accident had occurred.

Modification: You might have made modifications to your car such as to the suspension systems, wheels, exhausts, windows etc., and these will not be traditionally covered by the insurance company. The modifications will have to be declared to the company before you purchase the policy.

Annual mileage: This is the number of miles that your car is expected to cover in a year. This number in turn affects the costs of your policy.

This article covers only the major jargons used by Insurance companies. We advise you to read the policy document and refer other sources to fully understand all the terms and conditions of the policy. Happy Motoring!

Travel Insurance

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Get to the grips of what to expect when you buy a travel insurance policy.

Travel insurance covers both minor and major mishaps while travelling overseas for business or on holiday. Travelling without a suitable travel insurance cover can be risky and cause you financial distress in an unknown foreign location.

A travel insurance policy can cover you against any financial losses caused due to a wide range of events that can affect your trip. The policy covers you for whether they occur before, during or even after your trip.  Travel insurance should be a priority for all UAE residents, whether you travel regularly, occasionally or for that once-in-a-lifetime (YOLO) trip.

What is travel insurance and what does it cover? Here are the basics you need to know before you buy.

Types of travel insurance

  1. How often do you travel? Single trip and annual trip

Depending on the number of trips you are making in this year you can choose between a single trip and an annual multi-trip travel insurance cover. The rule of thumb is, if you are travelling overseas more than twice a year for more than 15 days, you can save valuable Dirhams by opting for an annual multi-trip cover.

  1. Where are you travelling? Europe or Worldwide

It is mandatory to have a travel insurance cover while travelling to Schengen (Austria, Denmark, Finland, France, Germany, Italy, Switzerland etc). Then, there is a worldwide cover which includes US and another one which excludes US. Make sure to check whether your chosen destination is covered under your insurance policy.

  1. Who are you travelling with? Individual or Family

If you are travelling with your family, you have the option of covering everyone under the same policy. It makes perfect sense to go for a family cover where the single sum assured floats amongst all the members of the family. It is cheaper as well. Just one caution, if you have a senior citizen or a family member with a special medical condition, discuss with your insurance agent before including them.

Benefits of Travel Insurance

Travel insurance policies offer a number of features that help cover you and your belongings while you’re on holiday or business.

  1. Emergency Medical Cover

Medical cover is the most crucial part of your travel insurance policy. The amount you need may sound huge but the cost of hospital treatment abroad could be many hundreds of thousands of dirhams. Without travel insurance, it will be scary to pay your own medical bills in a country like the US and this could be very expensive. Also, make sure to inform your insurer of any pre-existing medical conditions that affect you or a family member travelling with you, even if it seems minor or irrelevant.

Most of the insurers in UAE settle hospital bills directly all over the world. Also 24X7 call centre facility to help with emergency situations comes handy when you are stuck in an unknown location.

  1. Trip Delay, Cancellation or Curtailment Cover

If you are unable to travel due to an illness or bereavement, you can claim for the ticket or hotel expenses paid. You can claim reimbursement for the unused part of the travel and accommodation services you booked, based on a pro-rata proportion of these services.

It’s always important to check the terms and conditions of your policy to see exactly what is covered and what is excluded.

  1. Baggage and Personal Belongings Loss or Delay Cover

Travel insurance normally covers you up to a certain limit for lost or stolen baggage and personal belongings (Passport, Traveller’s Cheques, Cash, Mobile phone etc) and even delayed baggage arrival beyond a certain period. As well as an overall limit for lost and stolen belongings, most travel insurance policies will limit what you can claim for single items and all valuable items. Be sure to bear this in mind when packing for your holiday.

  1. Other features

Other policy features covered in most travel insurance policies include door- to- door personal accident, legal expenses in case of personal liability, cover for disasters or unexpected events.

Whether you’re skiing in the Alps, lounging in the Maldives or trekking across the Amazon, we advise you take travel insurance cover for all your overseas trips. The cost of travel insurance in UAE starts from AED20 per day. That’s too small a cost for a worry-free holiday. Bon Voyage.

What is a no-claim bonus?

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Car Insurance is as such a pricey affair. Month after month, you diligently pay your insurance premiums. Being the cautious driver that you are, let’s say you never get involved in any unprecedented events on the road and subsequently make no-claims. Does this fact go un-noticed by your insurer? Not quite. In fact, they reward you the next time you renew your policy with what is known as a ‘no-claim bonus’. Well, the term ‘bonus’ might be misleading, so to clarify, it is actually a discount on your future premiums. Interesting. Isn’t it?

However, until recent times, not all insurers adjusted premiums based on the no-claim factor. This anomaly was duly noted by the Insurance Authority of UAE and the Board of Directors issued an order mandating all insurers to provide no-claim bonus. Subsequently, drivers with a clean record for one year would receive a 10% reduction in premiums. Furthermore, drivers with a 2-year incident free period can avail up to 15% discounts and ones with 3-years, can receive a whopping 20% discount. So, it definitely pays to be a safe and cautious driver in UAE.

Previously, insurers had also been charging customers a nominal administration fee to purchase the no-claim certificate. This has also been done away with and insurers must provide the certificate free-of-cost. In fact, customers are encouraged to lodge a complaint through the UAE Insurance Authority’s website in case their insurers are not complying to these regulations.

So, what if you indeed made a claim or two in the past insurance period. Does it mean your no-claim bonus drops to zero? Not necessarily. Insurers sometimes use a step-back scale to reduce the discount rate for the renewed premiums. You can also protect your no-claims discount by purchasing an add-on. Through this, you will be eligible to make claims (up to a pre-specified amount) in the insurance period and still be eligible for a no-claim bonus the following insurance plan-year. Some insurers even offer you the benefit of transferring your no claim bonus to another insurer or car, subjected to applicable conditions. It is to be noted that the no claim bonus is associated with the driver and not the car.

The concept of a no-claim bonus creates a win-win situation for both the insurer and the insurance holder. On one hand, Insurers like to do business with customers who make minimal or no claims, as the chances of the company making a lump sum pay out in the event of an accident is reduced. While on the other hand, customers get rewarded with good discounts for maintaining a clean record.

There is no set formula to calculate the discount that you are eligible for. There are various factors other than a claim-free period, such as age, profession and customer record (among others) that determine how much discount you might get. Every Insurer has different terms and conditions and you have to be wary about them before you sign the dotted line. Lastly, if you would like to get a no-claim bonus, you have to maintain a clean slate in the first place, so drive safely and happy motoring!

What are the types of Car Insurances in UAE?

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Car insurance premiums have become dearer over the years. It is not just about insuring your car with a plan that is within your budget, but also finding one that best suits your needs. You should consider your driving history, preferences, lifestyle and experiences, among other factors to determine the type of coverage that befits your case. The types of car insurance available in UAE are given below:

  • Third Party Liability Insurance: As per the UAE Insurance Authority, a motorized vehicle (with specifications as per policy) must at least have a Third-Party Liability Insurance. The Third-Party Liability insurance is the cheapest kind of policy that you can purchase. As the name suggests, it covers only damages to property or bodily injuries to a third party caused by your car. As a result, you would have to pay out of your own pockets for any repair costs to your own car. In the case where the damage is caused to your car by a third-party, then you can only hope that their insurance covers damages done to you. Although it is not suggestable to opt for this kind of insurance as it offers only bare minimum cover, if cost is your sole concern, then you need not look further.

  • Third Party Liability Insurance with Fire and Theft coverage: This type of policy is pretty much the same as the above mentioned one, with the exception that it includes coverage against cases of fire or theft. This type of policy is also marginally expensive.

  • Comprehensive Insurance (basic): This is a complete package offered by an insurer and offers a wider protection. It not only covers damages to a third party but also the ones to your own car and other bodily injuries. It also includes cover for other unprecedented events such as fire, theft, lightning, natural calamities, damage from an animal, etc. A comprehensive package offers better value for money and it is usually charged at a maximum of 5% of the car value.

  • Comprehensive Insurance (with add-ons): Along with a basic comprehensive plan, there are many other unfortunate events that insurance companies offer coverage for. These are termed as add-ons and you may pick the ones that best meets your interests and subsequently pay a small additional price for it. With add-ons, the price of your insurance plan might be around 3-10% of your car’s value. Some of the add-ons are…

    • Off-road cover: If you frequently take off to the desert and are in an un-marked road, then this add-on is something you should definitely opt for. However, these are often only offered for cars that have a 4-wheel drive or an owner who possesses an off-road license.

    • Road assistance: While you are on-road, there are chances that your car may experience break-downs, fuel shortage, lockouts, flat-tires, etc. In such cases the Road-assistance add-on covers cost incurred for mechanic or towing services.

    • GCC -countries: If you frequently travel around the GCC-countries in your car, then this add-on is a must. In fact, you cannot enter Oman without an insurance coverage such as this one.

    • Agency-repair: Your local repair shop may fix up your car for a lower price, but if you prefer that the authorized dealership of your car (who usually quote higher prices for spare parts and repair work) fix your car, then this add-on would be apt.

    • Car rentals: During the period when your car is being repaired, if you wish to rent another car, then the insurer would pay for those expenses if you purchase the ‘car-rental’ add-on

    • Some of the other add-ons worth mentioning are Zero-depreciation, personal-belongings cover and multiple riders cover

  • Premium insurance: If your car is your prized-possession and you hold it really close to your heart, then you should most definitely choose the Premium insurance policy. Insurers typically provide this type of insurance for their premium customers who own swanky sports car of exclusive luxury cars. This is the most expensive type of policy and costs 1-2% more than other policies. It covers almost all possible cases of unexpected events discussed above.

Secure yourself, your car and your loved ones by purchasing a car insurance. Do keep in mind that Insurers are stringent against claims that involve driving under influence, deliberate accidents and false claims. Read our article factors impacting car insurance premiums to know how you can minimize the price you pay to insure.