Motor Insurance : FAQ

  • What is Motor Insurance and why it is important??

    Motor insurance provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom

  • Is it mandatory to have motor insurance in UAE??

    Yes, minimum of Third Party liability cover is mandatory in U.A.E

  • What are the types of motor Insurance??

    There are mainly two types of motor insurance: 'Third Party Insurance' and 'Comprehensive Insurance'.

    Third Party insurance protects a policy holder against losses which arise due to Third Party bodily injury/death or  property damage. It is mandatory by law to have third party insurance.

    However, this insurance does not protect you against losses which arise due to bodily injury/death to you, your vehicle and co-passengers. If you would like to be compensated for any damages to you, your co-passengers and your vehicle in addition to third Party coverage, you are adviced to purchase comprehensive motor insurance with PAB

  • Which is a better policy: Comprehensive or Third Party policy??

    Comprehensive motor policy is more appropriate as it provides both Third Party coverage and damages/loss to one's own vehicle, co-passengers and self.

  • What is required for motor Insurance??

    You must be completely transparant with your insurer by disclosing any and all information that might be relevant to your insurance cover. If you don't, then you risk having your policy getting void or being left out without cover. If you don't, then you are at risk of having your insurance policy revoked or void and being left without cover. We need to be informed of all your details, driving history, vehicle user, vehicle details and location.

  • Why do premiums vary between different insurance companies??

    Insurance companies work with different statistics and use different methods to calculate premiums. Some companies are specialized in certain areas or types and so are prepared to give discounts in those areas. This adds to the complexity as various companies yield varied prices.

  • What factors determine the premium amount??
    There are various factors to determine the premium amount such as:-
    1. Make and Model of the Vehicle
    2. Year of Manufacture
    3. Place of Registration
    4. Current Showroom price of the vehicle
    5. Whether Client is Individual or Corporate Client
    6, Claim history and driving experience
    The principal insurance amount and its subsequent premium also vary according to the price of the vehicle.
  • Why should I purchase commercial Auto Insurance??

    If the vehicle is mainly used for commercial purposes it is always advisable to purchase commercial auto insurance as private muroor policies will have certain restrictions.

  • What if I do not receive an Insurance certificate right away??

    If you do not receive your insurance certificate right away, you will receive a cover note. It is a temporary insurance document establishing proof of Insurance and you can register your vehicle with it. The cover note is valid for 60 days from its date of issue. It is replaced by the actual policy document and certificate.