In a groundbreaking move, Al Fujairah National Insurance Co. (AFNIC) has introduced FloodGuard, the first insurance policy in the UAE that covers third-party accidental loss or damage to motor vehicles against floods and storms. This policy offers coverage for both personal and company-owned vehicles over seven years old that may not qualify for comprehensive insurance, with coverage limits of Dh25,000 or Dh50,000 for a 12-month term. FloodGuard is a standalone product that can be purchased by all motorists in the UAE, regardless of their existing insurance provider.
It is important to note that FloodGuard does not replace motor comprehensive, motor third-party liability (TPL), or statutory vehicle insurance. This policy is compatible only with existing motor TPL policies from AFNIC or other insurers, and it will be active 15 days after the policy start date. However, damage caused by reasons other than a storm, such as getting stuck in a sand dune, beach, wadi, or man-made body of water, is not covered by FloodGuard. Additionally, this policy covers only cars and not two-wheelers against rain and storm damage.
According to Antoine Maalouli, the CEO of AFNIC, the launch of FloodGuard comes in response to the unprecedented extreme weather events experienced in the GCC countries, including the UAE. The heavy rainfall in the region caused widespread devastation, leading to the realization that traditional insurance policies do not cover flood damage. As motorists increasingly seek protection against weather risks, including natural disasters, FloodGuard aims to provide tailored solutions to meet their needs. Maalouli emphasized the importance of innovation in staying ahead in the competitive landscape of the UAE.
During the mid-April rains, thousands of vehicles in the UAE were damaged, resulting in millions of dirhams worth of losses for insurers and vehicle owners. While rain-damaged vehicles covered under comprehensive insurance were able to file claims, third-party insurance claims were rejected by insurers. In light of these challenges, the introduction of FloodGuard by AFNIC offers a much-needed relief to private car owners in the UAE. The innovative insurance product addresses the growing demand for protection against weather-related risks and aims to provide peace of mind to motorists in the face of increasing climate change impacts.
