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Abu Dhabi: Some insurance companies say they may deny drivers' claims if the party responsible for the Ghantoot pile-up is not specified in the final police report.
"Many people sign policies without reading and are tempted by lesser installments, a couple of clauses can be added to the policy denying claims when the party responsible is unknown," a representative at a prominent insurance company explained.
"The reason is that in some cases the insured can hit a sidewalk, for instance, causing damage to his vehicle, and later file a police report against an unknown party to claim for insurance," he added.
However, the Ministry of Economy has issued mandatory standard terms for car insurance policies, imposing penalties on violating companies.
"No insurance company has the right to add, delete, or amend any clause of the policy issued by the ministry of economy, which circulated the standard clauses to all insurance companies in the UAE," said Mohammad Mazhar Hamada, director of the motor vehicles committee at the Emirates Insurance Society, and general manager of Al Ain National Insurance Company.
"The ministry issued two forms, the full insurance form and the third party form," he added, advising victims of the Ghantoot pile-up to read their policies against the ministry form.
"If any discrepancies appear, the insured must file a complaint at the insurance department of the ministry of economy which can assist directly without the need for legal procedures," he added explaining that such clauses are illegal and void and thus are not applicable.
"Media reports estimating the value of claims cannot be final, as the police reports are not out yet," Hamada said.
The police report is the crucial element in identifying the responsible party.
If the police report fails to identify a responsible party, then the claims can be presented against an unidentified party, where insurance companies cannot deny the claim," he revealed.
"The ministry is monitoring closely the commitment of insurance companies to the standard clauses related to loss, damage, and civil responsibility, and this later is the only term of reference for the relationship with the insured," Fatima Mohammad Es-Haq, director of the insurance department at the ministry said.
Advice: You're covered
To avoid falling in the trap, victims must ensure the following
- Await the final police report to identify the responsible party.
- If the case is against an unknown party, the victim is entitled to the claim, as the case then falls under the civil responsibility clauses set by the ministry of economy.
- If the insurance company denies the claim, the victim must approach the insurance department at the ministry of economy to enforce the payment.
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