Motor Vehicle Insurance in the UAE
Motor Vehicle Insurance in the UAE

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Motor Vehicle Insurance in the UAE

Traffic laws in the UAE mandates the necessity of insurance coverage for motor vehicles. This statutory requirement applies to all motor vehicles in operation within the UAE. In accordance with this legal obligation, vehicle owners are required to obtain an insurance policy for their motor vehicles. In the UAE, motor vehicle insurance is regulated by the Insurance Authority and governed by Federal Decree Law No. 6 of 2007, commonly known as the “UAE Insurance Law.” This law sets out the general framework for insurance activities within the country, including motor vehicle insurance. A motor vehicle insurance provides protection from the liabilities in the event of accidents or damages caused by any accidents. However, navigating through the numerous insurance policies and understanding their coverage can be overwhelming. In this article, we will provide a comprehensive guide to motor vehicle insurance in the UAE, helping you understand the fundamental concepts of the same. Like every insurance, Motor vehicle insurance is also a contract between the Insurer (Insurance Company) and the Insured. The Insurer agrees to absorb the financial liabilities to the Insured in case of accidents or realized risks, as specified in the policy documents. In general, there are two kinds of motor Vehicle policies namely Third party liability Insurance and comprehensive insurance.  

1. Third Party Liability Insurance

Third Party Liability Insurance is an insurance policy which covers damages caused by your vehicle to a third party individual and property, but it does not cover damages to the insured or his vehicle in case of an accident.

Loss and Damages covered:

Following loss and damages are covered under third party insurance policy,

a. Damages incurred to the third party or third party properties due to the insured.

b. Medical bills and bodily injury sustained by the third party due to insured.

c. Any other legal claim made by the third party related to the said accidents. 

2. Comprehensive Insurance

A comprehensive car insurance is meant to provide full loss and damages incurred to the insured as well as the third party involved, regardless of whether you caused the accident or were affected by another party’s actions. It includes damages incurred by the vehicle to medical bills of the insured along with the third party.

Loss and Damages covered:

Following loss and damages are covered under comprehensive car insurance, though, kindly note that that inclusions and exclusions are generic and it might change subject to the policy coverage of each insurance. 

a. Loss or Damages incurred to your vehicle and to the insured resulting from an accident.

b. Loss or Damages incurred to the third party, his vehicle or his property.

c. Loss or Damages incurred due to Natural Catastrophe to the vehicle of the insured.

d. Loss or Damages incurred due to man made disasters like riots, strikes, terrorism, fire etc. 

e. Theft of vehicle.

f. Litigation expenses in case of third party file suits regarding claim.

h. Extended accident cover that will include passengers, and paid drivers as well.


Loss and Damages excluded:

Following loss and damages are excluded in comprehensive insurance policy,

a. Loss or damages incurred while using the vehicle for illegal activities.

b. Loss or damage in war.

c. Driving being intoxicated.

d. Driving in case of invalid license or under-age drive.

e. Willfully causing the loss or damages to the vehicle.

f. Damages or loss caused due to negligence or improper upkeep of vehicles.

Importance of Motor Vehicle Insurance:

while you’re driving, you’re not only assuming responsibility for your safety but also for the safety of those who are on the public roads, as it only takes a fraction of second to cause an accident. During such situations a motor vehicle insurance will help you to cover your financial losses since it costs quite a lot to get your vehicle repaired beside the hospital bills and other expenses. You can also have a third party insurance which will help you settle any expenses you owed to a third party due to your fault while driving. Each insurance coverage and premium is fixed based on several factors such as the vehicle, type of coverage, driver/owner age etc. 

It is always beneficial to obtain the insurance as its premium is smaller than the actual expense you have to bear if you meet with an accident. It’s noteworthy that if you haven’t had any accidents or didn’t have a claim  over a period of time, most insurance schemes will provide you with a no claim bonus on your next insurance renewal based on your clean record.


Understanding the fundamental concepts of motor vehicle insurance is vital for every vehicle owner in the U.A.E. By familiarizing yourself with the coverage options, terms, and conditions, you can make informed decisions when choosing an insurance policy. Remember to compare different insurance companies, consider your specific needs, and ensure compliance with legal requirements. Being aware of your insurance policy empowers you to protect yourself, your vehicle, and others on the road, ensuring a safer and more secure driving experience.

For further assistance please contact Al Safar & Partners on +97144221944 – Email –

Written By: Mr. Touqeer Hussain – Case Manager at Al Safar and Partners Law Firm.

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