The insurance policy that covers third-party accidental loss or damage to motor vehicles against floods and storms has been launched for the first time in the UAE.
Launched by the Abu Dhabi-listed Al Fujairah National Insurance Co. (AFNIC), FloodGuard offers coverage for both personal and company-owned vehicles used exclusively for personal or leisure purposes, especially those over seven years old that often do not qualify for comprehensive insurance. This policy doesn’t cover commercial vehicles.
Policyholders can get coverage limits of Dh25,000 or Dh50,000 for a 12-month term by paying a premium of Dh350 and Dh550, respectively. Since this is a standalone product, all motorists in UAE who have purchased vehicle insurance policies from other insurers can also buy this policy.
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This product does not replace motor comprehensive, motor third-party liability (TPL), or statutory vehicle insurance and is compatible only with existing motor TPL policies from AFNIC or other insurers. FloodGuard will be active 15 days after the policy start date.
However, if the car gets damaged for reasons aside from a storm like getting stuck in a sand dune, beach, wadi or man-made body of water is not covered.
The policy covers only cars and not two-wheelers against rain and storm damage.
Thousands of vehicles were damaged in the UAE during the mid-April rains, causing damage worth millions of dirhams to insurers and vehicle owners. Rain-damaged vehicles that had comprehensive policies were able to file claims. Third-party insurance claims were rejected by the insurers.
“Innovation is key to staying ahead in the competitive landscape in the UAE. This year the GCC countries, including UAE, faced unprecedented extreme weather events intensified by climate change. The severe rainfall left devastation across the region. Many were unsure where to seek help only to discover that insurance policies don’t cover flood cover. As motorists increasingly seek protection against weather risks including natural disasters, we saw the need for tailored solutions. This product addresses the needs of motorists,” said Antoine Maalouli, CEO of AFNIC.
“In response to the recent heavy rains in the UAE, AFNIC’s innovative solution provides much-needed relief to private car owners. We are proud to spearhead this groundbreaking insurance product in the UAE,” he added.