UAE Insurers Reject Claims for Motorists Driving Through Floods, Citing Negligence

 

 

In the aftermath of the unprecedented rains on April 16, insurers have denied claims for some UAE motorists who drove through flooded streets, citing negligence.

The heaviest rains in 75 years led to widespread flooding in Dubai, Sharjah, Ajman and other emirates, damaging an estimated 50,000 vehicles.

The natural catastrophe clause covers only vehicles with comprehensive insurance policies against natural disaster losses. Third-party liability plans do not typically cover such events.

Avinash Babur, CEO of Insurancemarket.ae, explained that insurers are rejecting claims where it is evident that motorists intentionally drove through flooded areas.

"Insurance policies usually exclude coverage for damages resulting from negligent behaviour, such as driving through deep water during a storm. Claims for severe damage or total loss are likely to be denied if intentional or reckless driving is determined," said Babur.

Moin ur Rehman, Executive Director of Unitrust Insurance Broker, emphasised that policy terms and conditions could lead to coverage denial for damages caused by wilful actions. Toshita Chauhan, Business Head for Health and Motor Insurance at Policybazaar.ae, confirmed that claims were rejected due to motorists intentionally driving on flooded roads.

Babur noted that insurers meticulously review each claim related to the April 16 rains to determine the damage circumstances.

"The focus is to ensure that claims are valid by verifying that the vehicles were not driven through flooded areas during or immediately after the rainfall. Valid claims are approved swiftly, and repairs are carried out promptly. However, claims are rejected if it is established that the vehicle was driven through water or in adverse weather conditions," he stated.

The unprecedented weather disruption last month led to a record number of motor and home insurance claims in the UAE. With estimates of about 100,000 vehicles affected by the floods on April 16, many were declared total losses. Numerous claims remain unresolved, and the process could take two to three months to normalise.

If your claim is rejected, you can file a complaint with the Insurance Authority, overseen by the Central Bank of the UAE, and if unresolved, the case may be taken to court. Complaints can also be addressed through Sanadak by meeting specific eligibility criteria. 

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