Motor insurers are increasing not just auto insurance premiums, particularly because of losses incurred in this year's April rains, but also co-payments by insureds.
Motor insurers are increasing not just auto insurance premiums, particularly because of losses incurred in this year’s April rains, but also co-payments by insureds.
This hike has particularly impacted fleet and limousine service operators, reported Gulf News.
Auto parts and repair costs have risen significantly in the UAE in the last three years, which blows up the cost of repairing any vehicle involved in an accident, an insurer told the newspaper. That immediately adds to the co-insurance costs for the particular repair.
Mr Avinash Babur, CEO of InsuranceMarket.ae, said that fleet clients are not the only parties to bear co-insurance. “For individual car owners, an 'excess' is typically charged in the event of an own-fault accident, a single-party accident, or a 'hit-and-run' situation where the responsible party is unknown.
He added, “Co-insurance and excess have been standard features in motor policies, as well as in other types of insurance.
“These elements are fundamental to how policies manage risk and share financial responsibility between the insurer and the insured.”
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