Following the unusually high rains reported in mid-April, insurance companies in the United Arab Emirates have raised premiums by as much as 30%.
Executives in the insurance sector claim that demand for comprehensive insurance has increased, as have premiums. Some have observed a 100% increase in the post-rain period. Third-party liability (TPL) does not cover damages to homes and vehicles caused by natural disasters, forcing owners to choose more expensive packages. On April 16, the UAE saw its worst rainfall in 75 years, which caused flooding throughout much of the nation, particularly in Dubai, Sharjah, and Ajman. Insurance companies have been inundated with claims for losses to houses and cars sustained during the rain, with some claiming a 400% increase.
Again this week, the UAE is predicted to see two days of medium to heavy rain beginning on Wednesday night.
The business head of health and auto insurance at policybazaar.ae, Toshita Chauhan, stated that following the severe rains, they had “noticed an increase ranging from 5 to 20 per cent” in insurance rates. She said the claims have increased by about 200 percent from the prior weeks.
Chauhan continued, saloons and sports/coupe automobiles, in particular, will be more affected by the premium increases because they appear to have been the most negatively affected by the most recent rains.
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