UAE insurers are refusing to compensate some motorists for flood-damaged vehicles following record-breaking rainfall in April. The insurers argue that these drivers disregarded safety precautions by driving through flooded roadways, constituting negligent behavior.
The unprecedented downpour on April 16 caused widespread flooding across Dubai, Sharjah, Ajman, and other emirates, damaging an estimated 50, 000 vehicles. Many motorists filed insurance claims, but some are now facing rejection.
The crux of the issue lies in the distinction between comprehensive and third-party liability insurance policies. Only comprehensive policies provide coverage for losses arising from natural disasters, while third-party liability plans typically exclude such events.
However, even with comprehensive insurance, insurers are denying claims when they determine the driver acted recklessly. Avinash Babur, CEO of Insurancemarket. ae, explained, “Insurance policies typically exclude coverage for damages resulting from negligent behaviour, such as driving through deep water during a storm. Claims for severe damage or total loss are likely to be denied if intentional or reckless driving is determined. “
Moin ur Rehman, Executive Director of Unitrust Insurance Broker, emphasized that policy terms and conditions can supersede compensation in cases of willful actions. “The terms and conditions of policies may be ignored in such conduct, which could result in denial of cover for damages caused by such deliberate actions, ” said Rehman.
Insurers are meticulously scrutinizing each flood-related claim to determine the circumstances under which the damage occurred. This process often involves reviewing weather reports, traffic flow data, and witness accounts to establish if the driver had a safe alternative route.
The UAE’s Insurance Authority has not mandated a specific course of action for insurers handling flood damage claims. However, the authority encourages policyholders to carefully review their insurance policy terms and conditions to understand their coverage limitations.
Motorists are also advised to prioritize safety during adverse weather conditions. This includes avoiding flooded roadways and seeking alternative routes whenever possible. If a safe alternative is unavailable, pulling over to a safe location and waiting for the water to recede is the recommended course of action.
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