Consumers complained that companies operating in the insurance sector were reluctant to provide comprehensive insurance for their vehicles, despite their new models, and imposed a “third party insurance” policy on them, or raised the price of the policy in exchange for comprehensive insurance.
They reviewed to Emirates Today their experiences in searching for “comprehensive insurance” documents for modern vehicles they purchased, and having to pay a high cost in exchange for providing them, considering this to be abnormal.
For its part, the Emirates Insurance Federation confirmed that companies are obligated to provide “third party insurance” only, while comprehensive insurance is not required, and revealed to “Emirates Today” the reasons for some companies’ reservations about providing comprehensive insurance for some vehicles, including the lack of spare parts. Easily, which delays the repair of the vehicle in the event of an accident, and the policyholder pressures the vehicle owner to “write it off,” even though there are no major damages to it amounting to 50% of its value or more, and the impact of the delay in spare parts on the reputation of the insurance company due to Delay in repair.
The Emirates Insurance Federation pointed out another problem related to the refusal of comprehensive insurance, which is the entry of some modern models into the local market away from agencies that refuse to receive the car for repair, because it is not through them, suggesting that the concerned authorities cooperate to solve this problem with the relevant authorities in the foreign market.
Consumer complaints
In detail, consumer Wael Hamza told Emirates Today: “I looked for comprehensive insurance for my vehicle, which is a newer model and a (model) last year, but several companies told me that the available insurance policy is (third party insurance), and that it is difficult to provide insurance.” Comprehensive, even if the vehicle is a newer model.
For his part, consumer Majid Mahmoud confirmed that he searched for a long time for a company that would provide “comprehensive insurance” for a modern vehicle that he purchased in 2023 from a car supply company in the country, stressing that many companies in the sector refuse to grant “comprehensive insurance” for cars of modern models, some of which are Of Asian origin, which prompts the owners of these cars to look for companies that allow this, even at a high cost.
As for the consumer, Suhail Hassan, he saw that “it is abnormal that companies in the market do not provide comprehensive insurance for vehicles,” and he reviewed his experience for “Emirates Today,” saying that he bought a new “model” car last year, and during the procedures for renewing the vehicle license for the year 2024. He was surprised that some companies refused comprehensive vehicle insurance, at a time when companies offered to provide it, but at a high price, even though only one year had passed since the car was produced.
Compulsory companies
In addition, Mohammed Mazhar Hamada, Vice Chairman of the Supreme Technical Committee and Head of the Automotive Committee at the Emirates Insurance Federation, told Emirates Today: “Companies are obligated to provide (third-party insurance) only, but comprehensive insurance is not required.”
He added: “There are several problems with providing (comprehensive insurance) for some Asian cars originating within the country, due to the lack of easy availability of spare parts, so most companies are reluctant to provide comprehensive insurance for them.”
In response to a question about the relationship of insurance companies with spare parts, he said: “It is true that insurance companies are not responsible for providing spare parts, but they are responsible for paying their price to the party that performs the repair, and because of the delay in repairing faults and the lack of availability of spare parts for a month or two, The insured (the vehicle owner) is pressuring the insurance company to write off the car, even though there are no major damages to it amounting to 50% of its value or more.”
He explained: “The write-off process requires the availability of specific standards, and the company cannot bear (the write-off) simply because of the delay in obtaining spare parts. In addition, this affects the reputation of insurance companies among the insured, as a result of delays in repair.”
Hamada continued: “The other problem with providing comprehensive insurance for some cars is that some of them enter the market away from agencies, and are sold at a cheaper price than the agent’s price, which increases the demand for the showrooms that sell them, but when an accident occurs, the agent refuses to receive the car for repair, because it Not through him, and this is a big problem for insurance companies, which makes them be cautious about comprehensive insurance for this type of car.”
He said: “Even if the insurance company agrees to provide comprehensive insurance and provide repair at the car’s agency, the agent himself refuses to do so as a result of the car not being entered through him, which causes problems between the two parties.”
Hamada stressed the importance of all concerned parties cooperating to solve this problem with the relevant authorities in China, to ensure the entry of cars through the agent, and to provide spare parts easily, which helps insurance companies perform their work and serve the insured well.
Sales Executive: Spare parts are available
Sales advisor at a car agency, Mohamed Saleh, said: “Car supply agencies and companies are committed, in accordance with the laws in force in the country, to ensuring the provision of car spare parts sold through them, especially with the provision of warranty and guarantee for varying years, ranging between five and seven years, according to the policies of the agency that operates. In these models of cars.
In the same context, the sales official at one of the car supply companies, Raveesh Mogul, agreed that “car spare parts, which are sold by agencies and companies operating in the country, are guaranteed to be available in the markets, especially since they are subject to warranty and guarantee systems in a way that prevents any challenges to providing comprehensive insurance.” “On her.”
«Emirates Insurance Federation»
. Spare parts are not readily available.
. Insurance companies are not responsible for providing spare parts, but they are responsible for paying for them.
. The lack of availability of spare parts for a month or two causes the vehicle owner to put pressure on the insurance company to write it off.
. The write-off process requires the availability of specific standards, and the company cannot bear “write-off” simply because of the delay in obtaining spare parts.
. The agent refuses to receive the car for repair if it is not through him, and this is a major problem for insurance companies.
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