Today, the Central Bank issued a notice to all banks and finance companies to provide relief to customers affected by the rain by postponing installments and granting small interest-free loans
The sources indicated that the Central Bank has set a period of 6 months to pay installments of personal loans and car loans for customers affected by the repercussions of the weather condition without imposing fees, interest, or additional profits, or increasing the principal amount of the loan to the customer in exchange for postponing the payment of installments.
The Central Bank added that vehicles and homes that were damaged as a result of severe rain as a result of the weather condition that the UAE witnessed last week are covered by insurance in the event of an insurance policy against the risks of loss and damage, or what is called “comprehensive insurance,” and the insurance companies that issued these documents are considered responsible of compensation.
The Central Bank also directed to advise the public of the importance of reading and understanding the insurance document to guarantee their insurance rights, and then to go to the “Sanadak” unit to settle banking and insurance disputes in the event of a complaint or dispute with insurance companies.
Third party insurance does not cover the total loss of damaged cars:
The Emirates Insurance Federation indicated that if cars reach the limit of total loss as a result of rain, they will be compensated according to the value specified in the policy, but in the event that the insured has comprehensive insurance against loss and damage and civil liability, with a depreciation percentage calculated for the number of months the car has been used since the start of the insurance. .
Mohammed Mazhar Hamadeh, Vice Chairman of the Supreme Technical Committee of the Emirates Insurance Federation, continued that the problems arise if the car is insured against civil liability only (against third parties). Here, it has no value in the policy as a total loss, whether caused by the vehicle owner himself or due to rain or otherwise.
Hamada explained that if the vehicle is damaged as a result of a regular road accident, the amount of compensation is estimated according to discussions and deliberations about how much the car is worth in the market, at the time of the accident, and the compensation is paid by the insurance company that caused the accident.
