UAE Launches 'FloodGuard' Insurance for Vehicle Damage from Natural Disasters

For the first time, UAE motorists can now access third-party insurance coverage for vehicle damage caused by floods and storms. Launched by Al Fujairah National Insurance Co. (AFNIC), the new product, FloodGuard, provides protection for both personal and company-owned vehicles used for leisure or personal purposes—particularly for those over seven years old that may not qualify for comprehensive insurance. However, it does not cover commercial vehicles.

FloodGuard offers two coverage options: policyholders can choose between limits of Dh25,000 or Dh50,000 for a 12-month term, with premiums starting at Dh350 and Dh550, respectively. This standalone insurance can be purchased by any motorist in the UAE, regardless of their primary insurer, provided they have an existing third-party liability (TPL) policy.

It is important to note that this product does not replace traditional comprehensive or TPL motor insurance, and its coverage activates 15 days after the start date. While the policy protects against damage from natural events like storms and floods, it excludes damages from incidents such as getting stuck in sand dunes, beaches, wadis, or man-made water bodies. Additionally, FloodGuard covers only cars, excluding two-wheelers.

The introduction of this policy follows severe rainfall in mid-April 2024, which damaged thousands of vehicles across the UAE, resulting in millions of dirhams in losses. While vehicles with comprehensive insurance were able to claim, those with third-party insurance were left without coverage.

“Innovation is crucial in the competitive UAE market,” said Antoine Maalouli, CEO of AFNIC. “This year’s extreme weather events, worsened by climate change, left many without adequate protection. With motorists increasingly seeking coverage for natural disasters, FloodGuard fills a vital gap in the market, providing peace of mind for vehicle owners.”

Maalouli also expressed pride in AFNIC’s leadership in introducing this unique insurance solution to the UAE, offering much-needed relief for private car owners in the wake of the recent storms.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.