The recent record-breaking weather disruptions in the UAE have led to a surge in car insurance claims, with brokers estimating that the number of claims that should have occurred over 12 years were processed in just a few days. While authorities have not provided exact figures on the number of affected vehicles, it is believed that around 100,000 cars were damaged, many of which were deemed irreparable due to being submerged in water. Insurance brokers and providers have been inundated with claims, causing delays in processing and arranging vehicle towing services.
Insurance experts have highlighted that the processing time for claims can vary depending on the complexity of the case and the availability of necessary documentation. Typically, the average processing time for a car insurance claim in the UAE is two to three weeks, but this can be extended based on various factors. It is important for customers to cooperate with insurance companies, submit accurate documentation, and follow up regularly to ensure a smooth claims process. Additionally, customers are advised not to attempt to start a damaged car, as it could worsen the damage and potentially void insurance coverage.
In the aftermath of the extreme weather events, many motorists are facing increased insurance premiums, with rates rising by 20 to 50 per cent in some cases. Insurers are re-evaluating their risk assessments and pricing strategies for natural calamity coverage, which could impact both new and existing policies during renewals. Home insurance premiums may also be affected, as insurers may become more stringent with risk assessments for properties located in flood-prone areas.
To claim for flood damage to a vehicle, owners should check their insurance policy coverage and immediately notify their insurance company about the incident. Gathering evidence such as photos, videos, and police reports is essential for a successful claim. Once a formal claim is submitted, an adjuster will assess the damage and determine repair costs or total loss value. It is recommended to keep records of expenses incurred during the claims process, such as towing and storage costs, for potential reimbursement.
Despite the challenges posed by the surge in insurance claims, insurance companies are actively working on processing the claims to ensure that affected motorists receive compensation for the damages caused by the weather disruptions. The industry is likely to see changes in pricing and risk assessments, as insurers adapt to the increased risk of natural calamities in the region. Customers are advised to stay informed about their policy coverage, cooperate with insurers during the claims process, and be prepared for potential increases in insurance premiums.
