Mohamed Mazher Hammada, Vice Chairman of the Higher Technical Committee and Head of the Automobile Committee at the Emirates Insurance Federation, confirmed that the unified comprehensive insurance policy against loss, damage, and civil liability, known as 'Al-Shamel' (Comprehensive), covers damages caused by floods and rains. He emphasized that according to the unified comprehensive insurance policy currently in effect, this coverage is automatically included in the contract terms, as long as the state has not declared the rainy conditions a 'natural disaster.' In such a case, insurance companies do not pay for damages, as the state bears that responsibility. Hammada explained that the situation with rains in the UAE, whether this year or last, was not classified as a natural disaster. Therefore, last year, insurance companies received direct guidance from the Central Bank to pay compensation, and the same applies to the current rains, where companies are expected to provide coverage and settle claims if there are losses. Hammada told 'Al-Ittihad' that it is important for policyholders to understand that coverage applies only when the vehicle is in conventional locations, such as streets and designated parking areas, away from wadis (dry riverbeds) and floodplains, and other dangerous places. He pointed out that intentionally being in these areas negates the occurrence of a natural peril, and thus it is not permissible to demand insurance coverage for resulting damages, even with a comprehensive policy. Hammada confirmed that all insurance companies in the country adhere to the contracts made with their policyholders, and the regulatory authority closely monitors the implementation of all regulations and laws. However, the policyholder also has a role to play by being responsible and not exposing their vehicle to significant risks by being in flood-prone areas. It is worth noting that some vehicles suffered varying degrees of damage because their owners were in wadi areas for enjoyment and to film the rain, while the damage to others amounted to a total loss. Last year, insurance companies were instructed by the Central Bank to pay compensation, and the same situation applies to the current rains, where coverage and claims are expected to be provided in case of losses.
