E-scooters and mopeds could be a menace for motorists and pedestrians as they are neither registered nor have insurance cover.
This raises an important question as to who will bear the cost of damages if an e-scooter gets in an accident with a vehicle. As many as four people were killed and 25 injured in different accidents involving e-scooters and bicycles between January and June 2024 in Dubai.
The Dubai Police recorded over 7,800 traffic violations in the first six months of 2024 and confiscated 4,474 e-scooters and bicycles. This means that roughly 43 traffic violations were recorded and 24 e-scooters or cycles were seized by the authorities in Dubai on a daily basis.
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If the vehicle owner is at fault
In case of an accident where the owner of the vehicle is at fault, Gautam Datta, CEO of Watania International Holding, said if the driver has comprehensive motor insurance, the insurer of the vehicle will pay for damages to both the vehicle and e-scooter rider. But if the vehicle driver has third party motor insurance, the insurer of the vehicle will pay for damages to the e-scooter whereas the driver will be liable to pay for his own car damages.
If e-scooter rider is at fault
If the e-scooter rider is at fault, Datta said the car driver will be compensated by his own insurance company whether he has comprehensive or third party insurance. In some instances, the insurance company will then file a case against the rider who is at fault to recoup the losses incurred.
If the e-scooter rider is injured in the accident and he is at fault also, then the vehicle driver/owner will not be liable for any injury suffered by the e-scooter driver, he added.
Anas Mistareehi, CEO of eSanad, elaborated that the damages to the e-scooter would typically not be covered by the car’s insurance, leaving the e-scooter owner to bear the repair costs unless otherwise agreed upon privately.
He added that if the e-scooter rider is injured in an accident where he’s at fault, the vehicle owner will not be penalised or held responsible. “Since the vehicle owner is not at fault, they bear no liability. In this case, the e-scooter rider’s own insurance policies, such as medical insurance, may be triggered to cover their injuries.”
Insurance coverage for e-scooters?
eSanad chief executive said insurers in the UAE currently do not offer specific policies for e-scooters and mopeds. However, as their use grows, particularly in urban areas, insurers need to develop these policies.
“It’s crucial for insurers to start developing non-traditional insurance products that meet emerging market needs. Rather than waiting for authorities to mandate coverage, insurers should proactively design and introduce new policies that align with evolving lifestyles, such as those for e-scooters and other modern mobility solutions. This approach not only addresses current gaps in coverage but also positions insurers as leaders in adapting to societal changes,” Mistareehi added.
Gautam Datta said insurance companies are always considering new products to meet market demand as long as they can complete a comprehensive assessment of the risk to be insured.
“At the moment, given that there’s no regulatory requirement for licensing for the e-scooters and mopeds, insurance penetration in this segment remains very low in the UAE,” he said.