Insurers in the United Arab Emirates have been under fire for turning down claims from drivers who had to drive through flooded streets after the record-breaking rainfall on April 16. The natural disaster clause investigates this aspect thoroughly, yet this rejection stems from what experts in the field consider to be carelessness.
Unprecedented rainfall in the UAE
Amid the aftermath of unprecedented rainfall on April 16, UAE insurers have garnered attention for their rejection of claims from motorists who drove through flooded streets. This rejection stems from what industry professionals deem negligence, a factor scrutinized under the natural catastrophe clause.
The deluge on April 16 marked the heaviest rainfall the UAE had seen in 75 years, inundating regions across Dubai, Sharjah, Ajman, and beyond. Reports suggest that upwards of 50,000 vehicles incurred damage during this extraordinary weather event.
Key to understanding the insurance landscape in such circumstances is the natural catastrophe clause. This provision dictates that only vehicles covered by comprehensive insurance policies are eligible for compensation in the event of losses arising from natural disasters. Conversely, third-party liability plans typically exclude coverage for such catastrophes.
Avinash Babur, CEO of Insurancemarket.ae, elucidated insurers' stance regarding claims stemming from deliberate actions like driving through flooded streets. Babur emphasized that insurance policies typically refrain from covering damages resulting from negligent behavior, which includes recklessly navigating deep waters during a storm. Consequently, claims for severe damage or total loss incurred through such actions are prone to denial.
Moin ur Rehman, executive director of Unitrust Insurance Broker, echoed Babur's sentiments, emphasizing that policies' terms and conditions might be disregarded in cases of willful misconduct, potentially leading to denied coverage for damages caused by such actions.
Navigating Insurance Amidst Natural Disasters
Toshita Chauhan, business head for health and motor insurance at Policybazaar.ae, corroborated these insights, highlighting instances where claims were rejected due to motorists knowingly traversing flooded roads.
Amidst the fallout of unprecedented rainfall, the UAE's insurance sector is grappling with the intricacies of coverage eligibility under the natural catastrophe clause. Instances of rejected claims underscore insurers' scrutiny of deliberate actions like driving through flooded streets, underscoring the importance of prudent behavior and adherence to policy terms to secure coverage in such scenarios.
