Under 25 car insurance dubai uae
Terms and conditions of Rental Agreement
1. To keep the vehicle fully covered by comprehensive insurance third party liabilities in respect of death and bodily injury. Owner shall have the option to decline or accept PAI and CDW at extra cost. The insurance policy does not cover acts of Sabotage, Terrorism, flood, storm, hurricane, volcanic eruption, earth quake or other convulsions of nature, invasion act of foreign enemies, hostilities or warlike operations whether war be declared or not civil war, strike, riot, civil commotion mutiny, rebellion, revolution insurrection military or usurped power, confiscation or nationalization. Reckless and drunken driving (under the influence of alcohol and any other substance).
2. To carry out routine maintenance, servicing and repairs (including normal tyre wear but excluding tyre puncture and damages) resulting from normal wear and tear.
3. To arrange for registration of the vehicle.
4. To provide a replacement vehicle during maintenance and service of the leased vehicle. Replacement will be subject to availability and not exceed a small saloon, unless specified in the Rental Agreement. In case of accident, replacement vehicle will be provided only after original Police Report and Repair slip acceptable to the insurance are submitted to the owner.
1. To pay lease rental (calculated on 24 hour basis), without prior demand, in advance or within prior approved credit period.
2. To pay for excessive usage beyond 350 kms/day on Daily Rental, 250 kms/day on Weekly Rental, 4000 kms/month on Monthly/Lease rental for passenger cars and 5000 kms/month on Monthly/Lease rental for commercial vehicles. AED 0.20 to AED 1.00 per km (depending on the type of vehicle). (Applicable for Lease Contracts only).
3. To pay for delivery or collection @AED 100/- in Dubai, AED 150/- in Sharjah/Ajman and AED 250/- for all other Emirates. An additional amount of AED 100/- will be charged for delivery or collection on Fridays and Public holidays. Airport surcharge of AED 50/- will be charged for vehicles off-hired at the airport.
4. To accept and pay for all fine, road tolls, toad taxed and expenses incurred through violation of traffic, municipality and local laws. Owner reserves the right to charge these to the Hirer’s account of Hirer’s credit card or transfer to the driving license without prior approval irrespective of delay and with no preset time limit.
5. To keep an amount of AED 1000/- for RAC’s and one month rental for MRAs and LES as traffic fine deposit during the rental period and for a period of 40 days, from the date of return of the vehicle.
6. To pay for THE KNOWLEDGE DIRHAM, TRAFFINCE FINE, TOLL CHARGES, and or any surcharge imposed by the Traffic Department, Municipality, RTA or any other authority and 10% (of the fine amount, knowledge dirham and or surcharge fee), 10%/25% of the toll charges not later than 3 days from date of intimation. Hirer also agress to pay AED 50 per fine, per day if the same is not reimbursed to Owner within 3 days To pay for any loss, damage, rent legal and service charges for the period the vehicle is impounded or taken over by the Traffic department, police, Municipality, RTA or any other Authority, for any offence committed by the Hirer.
7. To bring the vehicle for routine service/repair within the service due kms and for renewal or registration including the replacement vehicle will be to the account of the Hirer.
8. To pay in advance an amount of AED 100/ per month for additional driver (other than the Hirer) in case of Monthly Rental, AED 25 per agreement in case of Daily Rental and AED 50 per agreement in case of Weekly Rental. The name of the additional driver must be registered in the Rental Agreement. The Hirer undertakes to bear all accident repair charges in case the vehicle meets with an accident and the driver is not registered in the Rental Agreement, even if the Hirer has taken CDW in advance and has obtained a police.
9. To ensure all drivers driving the vehicle hold a valid UAE driving license that is more than 6 months old (in case of less than 6 months old, the driver must additionally possess a license from his/her country of origin that is more than 1 year old). In case of visit/tourist/transit visa, the driver must possess an International driving license along with a local driving license from the country of origin (more than 1 year old). Noncompliance with the above will attract additional liability of 10% of the total damage cost on ‘own vehicle’ in case of accidents due to the driver’s fault 9including hit and run cases).
10. Not to allow the vehicle to be driver by a driver whose name is not in the Rental Agreement or by a driver who is less than 25 years of age. Noncompliance with the age limit of the driver will attract additional liability of 10% of the total damage cost on ‘own vehicle’ in case of accidents due to the driver’s fault (including hit and run cases).
11. To inform the owner immediately in the event of an accident and obtain a police report and repair slip acceptable to the insurance company to process the insurance claim and shall bear AED 1000 (passenger vehicle)/AED 1500 (commercial vehicle) out of the total indemnity (unless CDW is accepted in advance and paid, reducing the insurance excess to AED 250/500). The insurance excess is payable in all cases where the accident is due to the fault of the driver or where the third party is not identified and responsible. CDW (with insurance excess of AED 350/500) will be valid only against a police report and repair slip acceptable to the insurance company. In case, due to any reason, it is not possible to obtain the police report to make an insurance claim, Hirer will pay for all costs of repair to the vehicle, third party damage including, but not limited to the less of use. As per UAE laws, an accident vehicle is not be removed from the place of accident unless police has inspected the vehicle, the Hirer will pay cost of transporting the accident vehicle to the workshop or police yard in the concerned Emirate and later to the workshop.
12. To ensure all fluid levels (oil, water fluids etc.) and tyre pressures are maintained to the levels specified and accept financial liability for any damage from use of the vehicle below the specified required levels.
13. Not to sub-let or give possession of the vehicle to third party and us e the vehicle for illegal, criminal or for any purpose other than for those the vehicle is intended for. Insurance is not covered in case the vehicle is used for these activities.
14. Not to use the vehicle for hire, rallying, racing, any type of off road application (including desert fun drives etc.), driving through pool of water, overloading or exceeding the number of passengers for which the vehicle is licensed and as mentioned in the registration card. Insurance does not cover for any damages or losses in case the vehicle is used for these activities.
15. Not to take the vehicles outside UAE territories.
16. To return the vehicle on due date in condition in which it was handed over including interior and exterior cleaned. In case of any damages, the Hirer agrees to pay for the repair as per the estimate of the Owner and the rental of the vehicle until the same is repaired.
17. To pay as below if the hired vehicle is returned before the agreed expiry date of the agreement. Weekly/Daily rates as applicable for Monthly/Lease agreements if the vehicle is returned in the first month of hire. Daily rates are applicable for Weekly agreements if the vehicle is returned in the first week of hire. The Hirer will also be responsible to pay the early termination charges.
18. To pay for usage of Owner’s fuel at 1½ times the prevailing market price and cleaning cost of AED 50/- for exterior and AED 150/- for under body and AED 250/- for interior.
19. To ensure that no unauthorized person repairs or carry out modification on the vehicle without prior written approval of the Owner (including application of film, advertisement stickers, fixing of tow hooks etc.). The Hirer will be responsible for any taxes, levies, penalties, fines or charges these changes will attract from the different authorities of the country.
20. To compensate the owner for all losses including loss of profit due to failure to comply with any of the terms of this agreement.
21. To accept all liabilities, and hold the owner harmless, for use of the vehicle on hire and under possession of the Hirer.
Early Termination and Vehicle Re-possession
1. Owner shall have the option to terminate the contract, take possession of the vehicle and charge early termination fees in case the Hirer misuses the vehicle for illegal or criminal activities, makes frequent accidents, frequent traffic fines, not pay the rental charges or any other amount due to the owner beyond 7 days from the due date.
2. For early termination by the Hirer or the Owner, due to any reason, Hirer agrees to compensate the Owner an amount equal to 90 days rental in case of 3 year lease, 60 days rental in case of 2 years lease, 30 days rental in case of 1 year lease and 60% of the monthly rental in case of 6 months lease unless mutually agreed in writing in advance at the time of initial hire of the vehicle.
3. UAE laws shall govern this agreement.
No Cash Payments will be accepted
ABU DHABI // Motorists will pay more for their car insurance from January 1 when new tariff rates are introduced and companies pass on the cost of ambulance services and courtesy cars to customers.
New maximum and minimum premiums will be set for third-party and comprehensive policies, depending on vehicle type.
The UAE Insurance Authority has issued a new vehicle insurance tariff system, on which premiums are based. The new regulation, effective from January 1, 2017, supersedes an existing circular that has been in place since 1996.
"It’s pretty straightforward," said Frederik Bisbjerg, executive vice president of Mena Retail at Qatar Insurance Company. "The insurance regulator has given us parameters to work with so we have to set limits under the scheme.
"The minimum has been increased, which is good for the insurance companies because there has been a lot of competition, especially for cars of lesser value."
The new system includes unified motor vehicle insurance policies against third-party liability and against loss and damage.
The tariff will include additional bolt-on premiums to cover the cost of ambulance services and medical evacuation to hospitals.
"Across the board, everybody will have to pay a somewhat higher premium because we insurers have to offset the ambulance fees, which we’ve already done, and the 10-day replacement vehicle," Mr Bisbjerg said.
"This is part of building up the reserves of insurance companies so we can pay for the claims that we are obligated to do."
It will be mandatory for insurance companies to give policyholders compensation equivalent to the cost of a replacement car after an accident for a maximum of 10 days or pay out up to Dh300 per day for a rental.
"Most chief executives at insurance companies have welcomed stricter regulations on motor insurance," said Pascal Persoon, chief executive of eData Management Solutions in Dubai, which developed risk-management software for the insurance industry. But they fear premiums will go up.
A replacement, or courtesy, car – or cash for a rental – is sometimes provided when a vehicle is being repaired but until now this has been entirely dependent on the type of policy and the insurer.
"Imagine paying out Dh300 a day for 10 days, which is already Dh3,000 for someone with a comprehensive insurance," he said. "The other issue is insurers don’t have their own vehicles to replace cars involved in accidents."
The authority retained the maximum premium for policies against comprehensive liability and against loss and damage for saloon cars at 5 per cent. It is unclear whether the maximum rate of 5 per cent will also apply to sports cars.
"The new tariff system is fair but the only thing I’m worried about is if a saloon car is a high-performance vehicle, such as a super sports car, valued at Dh3 million to Dh4 million," Mr Bisbjerg said. "I’d be worried to insure it for a 19-year-old kid at 5 per cent."
Mr Persoon agreed it was a grey area under the new guidelines.
"Regardless of the history of the driver, it’s 5 per cent, which should not be the case," he said. "In the UK or US, if you cause an accident that is quite severe, the premium directly jumps to 8 to 9 per cent."
The minimum premium for a comprehensive insurance policy for a private saloon car is fixed at Dh1,300, and Dh2,000 for 4x4 vehicles.
The minimum premium for a third-party liability insurance policy for a four-cylinder private saloon car will be Dh750, while the maximum amount will be Dh1,300.
The premium increases based on engine capacity with a minimum of Dh1,300 for an eight-cylinder saloon car to a maximum of Dh2,100.
For a four-cylinder 4x4, the minimum and maximum premiums will be Dh1,000 and Dh1,750, respectively.
Under the new rules, insurance companies are allowed to quote prices based on technical or actuarial information, but cannot levy or charge additional amounts without a resolution by the Insurance Authority.
David Harris, director of distribution at RSA Insurance, said the group underwrites policies based on the level and type of risk that each customer brings to its books.
"So far we have made good progress and we are in good shape to meet the deadline," Mr Harris said. "We have a great working relationship with the regulator, and we will not hesitate to seek their support for further clarification, especially during the first implementation phase."
Under the new guidelines, good drivers will continue to obtain discounts on their insurance premiums and drivers with poor records will be made to pay more.
Mr Persoon, however, believes the insurance industry needs some clearer guidelines, including having a shared database on driver records and vehicle history.
"The next step from the insurance company is to have a shared database that is readily available to insurers, enabling them to identify risks," he said.
In doing so, drivers with a history of accidents will pay a higher premium than careful drivers. Accident histories can help them to charge fairer premiums based on risk profile, prevent fraudulent claims and lead to safer roads.
Twenty-five health centres, clinics, insurance brokers and insurance companies have been fined between Dh10,000 and Dh80,000 for violating Dubai's health insurance law. Six clinics have been referred to the public prosecution for potential fraudulent activities.
The Dubai Health Authority (DHA) revealed that the violations were found during surprise and routine inspections conducted by the authority's health funding department and complaints from members.
Dr Haidar Al Yousef, director of the health funding department, said: "Some healthcare providers and insurers did not comply completely with the health insurance law and circulars issued by the health funding department. We observed this through inspection visits, compliance meetings as well as complaints received from different parties involved in the system. Therefore, we have resorted to fining them to avoid such acts in the future."
Dr Al Yousef said that violating facilities received a warning that was followed by a fine and some were even referred to the prosecution and might face criminal charges due to potential fraudulent activities.
The fines ranged between Dh10,000 and Dh80,000 based on the violation and the number of times repeated, in line with Law No. 7 of 2016 issued by Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council. The law aims to protect the rights of individuals by ensuring they are covered by the health insurance.
Employers and sponsors who fail to provide mandatory health insurance cover are now liable to a fine of Dh500 per month. Apart from the fine, no new visa will be granted and no existing visas renewed without health insurance, according to the DHA.
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