Urgent.. Increase in car insurance rates in the UAE
The decision of the Ministry of Finance regarding the increase in car insurance rates in the UAE.
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Increase in car insurance rates in the UAE
The Minister of State for Financial Affairs, Muhammad bin Hadi Al-Husseini, confirmed that the Insurance Authority’s Board of Directors Decision No. 30 of 2016 regarding the Vehicle Insurance Rates Tariffs System obligated insurance companies to apply a legally defined price tariff, and the aforementioned decision included a price tariff consisting of two lower and higher limits, therefore Insurance companies must adhere to them, and insurance companies are free to compete between the two extremes, according to the company's experience with the client or for technical and actuarial reasons, provided that its financial position is not endangered or the rights of policyholders are lost.
Comment of the Minister of Finance regarding the increase in car insurance rates
The minister said, in a written response to a parliamentary question asked by Council member Obaid Khalfan Al-Salami, about “increasing car insurance rates in the country”: “What was published about the agreement of a number of insurance companies to raise the minimum price for vehicle insurance policies was incorrectly formulated. And that what happened was an initial coordination meeting to discuss amending the pricing policy related to discount rates from the minimum and not raising prices, bearing in mind that adjusting prices (pricing policy) is permissible and is considered within the permissible minimum and upper limits, which are specified within the tariff, and insurance companies may grant a reduction less than The minimum and legally specified percentages ranging from 10% to 30% for the accident-free record or loyalty to the company’s customers or the fleet and vehicles that run on gas or electricity.