Tim Elliott
Welcome to Lawgical, the UAE’s first and only regular legal podcast. My name is Tim Elliott, and I’m with the managing partner of the Dubai-based legal firm Yamalova & Plewka, Ludmila Yamalova. It’s great to see you again, Ludmila.
Ludmila Yamalova
Good to see you too, Tim.
Tim Elliott
This episode is all about vehicle insurance. The UAE has stringent vehicle insurance regulations, as you’d expect. It’s a bit different from some countries because if you have a UAE license, you’re generally insured to drive any vehicle within the class you’re allowed to drive, assuming, of course, that the owner of the vehicle has up-to-date insurance. To register and keep a vehicle on the road here, the appropriate insurance is a must. Let’s start there.
Ludmila Yamalova
In the UAE, it’s a very effective system to ensure that all drivers have proper insurance. Every year, anyone who owns a car in the UAE must register their vehicle with the relevant authority, such as Dubai’s Road and Transport Authority (RTA).
To renew your vehicle registration, you must provide proof of valid insurance. Without it, you cannot complete the registration process. This ties the insurance requirement to the registration process, ensuring compliance with the law. If your registration expires and you fail to renew it, you can face fines, penalties, or even vehicle seizure.
This mechanism effectively ensures that all drivers in the UAE not only have insurance but maintain it annually.
Tim Elliott
It’s a thorough system. Cameras and other checks ensure that it’s difficult to avoid compliance, right?
Ludmila Yamalova
Exactly. If your vehicle registration or insurance has expired, even parking in a public space could lead to your car being flagged by authorities or parking attendants. The interconnected systems, from number plates to parking systems, make it easy to identify expired registrations or insurance.
Additionally, UAE law insures the vehicle rather than the individual driver. So, anyone with a valid UAE license can drive your car as long as the vehicle itself is insured.
Tim Elliott
That’s a useful clarification. Let’s dive into the types of insurance policies available.
Ludmila Yamalova
Broadly, there are two types of motor insurance policies in the UAE:
- Unified Motor Insurance Policy Against Loss and Damage – This covers damages to your car.
- Unified Motor Insurance Policy Against Third-Party Liability – This covers damages or injuries caused to third parties, including other vehicles, property, or individuals.
These policies are governed by unified regulations, which outline the terms and conditions. While the base policy provides foundational coverage, you can add optional extras like comprehensive coverage or specific protections, such as off-road coverage.
Tim Elliott
Off-road coverage is particularly relevant here. Many people assume their comprehensive policy covers off-road driving.
Ludmila Yamalova
That’s a common misconception. Even with comprehensive insurance, off-road activities like dune bashing are often excluded unless you specifically add off-road coverage. Given the UAE’s popular off-roading culture, this is an important consideration.
We’ve had cases where clients rented luxury vehicles or SUVs, assumed they were covered for off-road use, and then faced issues when the vehicle sustained damage in the desert. It’s crucial to check your policy before heading off-road.
Tim Elliott
That’s a valuable point. What else should people keep in mind when purchasing vehicle insurance in the UAE?
Ludmila Yamalova
One key issue is transparency. Often, when you purchase vehicle insurance, you receive only a one-page certificate. This certificate references terms, conditions, and annexes that most people never see.
While the certificate may indicate basic or comprehensive coverage, the actual terms—such as coverage limits or exclusions—are found in the full policy document. Unfortunately, many customers don’t receive this document unless they specifically request it.
Tim Elliott
So, how can someone ensure they’re fully informed about their policy?
Ludmila Yamalova
Always ask for the full policy. Even if the insurer says the terms are available online, insist on a printed copy or at least a digital version. This is critical to understanding what is and isn’t covered.
Having the full policy is particularly important in case of a claim. Without it, you might face challenges proving what your coverage includes, especially if the insurer denies your claim.
Tim Elliott
That’s sound advice. Do you have any specific examples that illustrate why having the full policy is so important?
Ludmila Yamalova
Absolutely. One recent case involved a client who purchased comprehensive insurance for a luxury car worth AED 3.5 million. The policy was expensive—about AED 80,000—but the client only received a one-page certificate.
The car caught fire while being transported, and the insurance company refused to pay the claim. They claimed the fire was excluded from the policy, yet they never provided the full policy or cited specific exclusions. They also argued that the incident occurred off-road since it happened at an airport, which was nonsensical.
We took the matter to court, and the appointed expert committee reviewed the case. They found that the fire was clearly covered under the UAE’s unified motor vehicle insurance regulations. The committee also dismissed the insurance company’s off-road argument as baseless. The court ultimately ruled in favor of our client, awarding the full value of the car.
Tim Elliott
That’s a remarkable case. It underscores how critical it is to know your rights and have access to the full policy.
Ludmila Yamalova
Exactly. While most insurers operate professionally, there are cases where they rely on customers’ lack of knowledge to deny claims. The unified insurance regulations in the UAE are robust, and the courts tend to uphold them. However, without the full policy, you’re at a disadvantage.
Tim Elliott
Any final thoughts for our listeners?
Ludmila Yamalova
Always request the full terms and conditions when purchasing insurance. Review them carefully, especially for high-value items or activities like off-roading. Understanding your policy will save you a lot of stress if you ever need to file a claim.
And if you encounter issues, remember that the UAE’s legal framework is designed to protect consumers. Don’t hesitate to escalate matters if necessary.
Tim Elliott
That’s Lawgical on vehicle insurance. Thanks, as always, to our legal expert, managing partner at Yamalova & Plewka, Ludmila Yamalova.
Ludmila Yamalova
Thank you, Tim.
Tim Elliott
You can find us at lylawyers.com or on social media—Facebook, Instagram, TikTok, LinkedIn. Our podcasts are free on lylawyers.com. To have a legal question answered in a future episode of Lawgical or to consult a qualified UAE-experienced legal professional, click the contact button at lylawyers.com.
