Rainy Days in the UAE_ How Insurance Keeps You Covered
Rainy Days in the UAE_ How Insurance Keeps You Covered

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Rainy Days in the UAE: How Insurance Keeps You Covered


With the increasing global weather fluctuations, the United Arab Emirates (UAE) has recently experienced exceptionally heavy rainfall, resulting in significant damage to properties, specifically vehicles, homes, and commercial establishments. These unforeseen events have highlighted the importance of having sufficient insurance coverage and raised numerous questions about the responsibilities and obligations of insurance companies in such emergency conditions. In this article, we will take a closer look at the role of insurance companies in covering losses caused by rain in the UAE.

Responsibility of Insurance Companies in Compensating Vehicle Damages Due to Rain

Insurance companies are obligated under comprehensive insurance policies, (not third-party liability insurance), to compensate for vehicle damages due to rain. This is considered a case of weather-related damage covered by such policies, as long as the state has not declared these events as natural disasters. Coverage may include repairing the vehicles or compensating for the damages occurred to them. It’s important to differentiate between comprehensive car insurance and third-party liability insurance in the UAE.

Comprehensive Car Insurance in the UAE:

Comprehensive insurance covers all parties involved in the accident, including the at-fault party. Therefore, the at-fault party is not required to repair their vehicle at their own expense; instead, the insurance takes care of it. This includes personal injuries, damages to the involved vehicles, and even valuable possessions lost or damaged due to the accident.

Third-Party Liability Car Insurance in the UAE:

Third-party liability insurance covers injuries and damages caused to third parties by the policyholder, including bodily injuries and property damages resulting from the accident.

Responsibility of Insurance Companies in Compensating Home and Business Damages of the Insured:

Insurance companies are responsible for compensating all insured parties under comprehensive insurance, whether for homes, buildings, commercial establishments, or their contents, for damages due to rain. They are bound to fulfil the agreed-upon terms in the insurance documents, including paying compensation for rain-induced damages. In case of delays in compensation by insurance companies, the regulatory authority represented by the Central Bank is available for complaints at any time.

The Central Bank and Its Relationship with Insurance Companies:

The Central Bank of the UAE supervises and regulates the insurance sector following the Federal Decree-Law No. 25 of 2020, which merged the Insurance Authority with the Central Bank. With this merger, the Central Bank registers insurance companies in the country, grants licences for practicing the activity, including national, foreign, and Takaful insurance companies. The Central Bank is the regulatory body for the insurance sector, responsible for issuing regulations, standards, guidelines, laws, and regulatory releases.

Directives issued by the UAE Central Bank to Address the Consequences of the Weather Conditions in the UAE:

In confirmation of the UAE Central Bank’s commitment to address the consequences of the weather conditions, it issued two directives:

On March 5, 2024, the Central Bank of the UAE launched a new portal called “Sondok” for registering complaints against licensed financial institutions and insurance companies in case of disputes with insurance companies regarding compensation for rain damages.

On April 22, 2024, the Central Bank of the UAE issued a directive authorizing banks and financial companies operating in the country to defer personal loan and car loan instalments for six months to address the consequences of the weather conditions in the country.


It is evident that the UAE is making necessary efforts to protect its citizens and residents from any damage caused by harsh weather conditions. This is demonstrated by the Central Bank’s adoption of a series of precautionary measures, such as launching a complaint registration portal and deferring loan instalments, to alleviate the financial burden on affected individuals and companies. Additionally, the confirmation from the UAE Insurance Federation of insurance companies’ readiness to provide appropriate compensation reflects their commitment to offering financial protection to the insured during challenging times. In this manner, the UAE consistently demonstrates its commitment to safeguarding its population and community from any challenges that may arise and works to provide the necessary support to overcome those challenges effectively.

For further information or legal assistance please do not hesitate to contact us on the following number or email address: +971.4.4221944 or reception@alsafarpartners.com – www.alsafarpartners.com

Written By:

Ms. Rana Al Shoufi – Legal Consultant & Head of legal Coordination Department at Al Safar and Partners Law Firm

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