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June 27, 2021

Compensation You Can Receive Under Car Insurance Policy

Compensation is how your damages or losses in an accident would be reimbursed by your insurance provider. Find what compensation is included in a car insurance policy.

Compensation is how your damages or losses in an accident would be reimbursed by your insurance provider. Below are ways you may be compensated, including add-ons and benefits you could add available.

Claim: An insurance claim is a formal request by a policyholder to an insurance company for coverage or compensation for a covered loss.

Coverage – Third Party Death or bodily injury: In an unfortunate event where an accident causes death or bodily injury to a third-party person, the insurer will cover the loss to an unlimited amount, as per the decision of the court.

Coverage - Third Party Property damage: For faulty claims, all insurers are liable to compensate for the damage or destruction of third-party property with a minimum limit of AED. 2,000,000. However, there are insurers who provide a limit of indemnity up to AED. 5,000,000.

Coverage - Personal accident benefit to Driver and passengers: This is an optional cover. When added to the policy, the insurer is liable to compensate for injury to the driver or passengers up to a limit of AED. 200,000. This includes partial or permanent disability.

Coverage - Hire Car benefit: In addition to this optional cover, in case of a faulty claim, the insurer is liable to provide a vehicle or reimbursement of hire car services up to a defined limit per day and defined number of days as per the standard terms and conditions of the insurer.

Coverage - Windscreen Damage waiver: Insurers generally charge the policy excess for the replacement of windshields due to damage caused by non-collision cases. This cover ensures that the excess is waived, up to a defined amount by the insurer. 

Coverage - Emergency Medical Expenses, Loss of personal belongings: Most insurers provide this additional cover defined to a limit as per their standard terms and conditions. Emergency medical bills will be reimbursed on submission of the receipt along with the claim. Loss of belongings due to Theft will also be covered subject to providing the required documents such as the police report.   

Coverage – Specified Perils:  Also known as perils are the types of damages that are covered if mentioned in the text of your policy For example, your policy may name specific perils, such as:

  • Fire
  • Theft or attempted theft
  • Lightning
  • Windstorm
  • Hail
  • Rising water
  • Earthquake
  • Explosion
  • Riot or civil disturbance

For compensation and other services, avail car insurance policy from Gargash Insurance Services.

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