Insurance can be confusing, especially some of the terms. Our easy guide will help you understand what specific terms mean, so you are in control of your policy.


What is Agency Cover?

If you are in an accident and your car needs to be repaired, repairs would be carried out by the authorised dealer (for example, a Nissan would be repaired by the Nissan dealer workshop). If the policy does not include Agency Cover, then the car would be repaired in local workshop/garage.


What is Roadside Assistance?

Breakdown Cover (sometimes called Roadside Assistance) is the service that assists drivers whose vehicles have stopped working while they’ve been driving. If you break down, a mechanic will come to your location and try to fix any minor problems i.e. If this cannot be done, they will tow the car at the nearest garage covered with insurance policy.


What is Emergency Medical Expenses?

Emergency Medical Cover ensures that the insurer will pay the emergency medical bills, within reason, for you and the occupants of your car if you are injured in a road accident. Note that this will only apply if you’re injured in the car that is insured with Emergency Medical Cover.


What are Natural Calamities?

This type of coverage means that the insurer will compensate you for loss or damage to your car in the event of a riot or a strike Civil commotion, so long as it does not reach the proportions of, or amount to, a popular uprising. A flood, storm, typhoon, cyclone, tornado, volcanic eruption, earthquake or other natural disaster.


What is Windscreen Damage?

Windscreen cover means that your policy covers the replacement of your windscreen in the event it is damaged.


What is Off-Road Cover?

Provides compensation if your vehicle breaks down off-road. However, it only applies if:
i) The car comes with 4-wheel-drive specifications, i.e. it must be an off-road vehicle. What’s more, the excess paid on repairs will have to be double the amount that would be paid for on-road accident repairs.
ii) The car was not damaged in the event of a race or competitive sporting event. For example, the insurer will not pay out if you have damaged your car while taking part in the Gulf News Desert Run or Abu Dhabi Desert Challenge.


What is Ambulance Service?

In the case of an accident, ambulance service charges for any injured or deceased person shall be covered by the insurance company.


What are Personal Belongings?

This type of coverage offers compensation for personal belongings lost or damaged in your car. It includes:
i)Loss or damage to money, tickets, documents or securities.
ii)The theft of any property from an open or convertible vehicle unless it’s in a locked boot.
iii)locked glove compartment.
iv)Goods or samples carried in connection with any trade.
v)Goods and/or items belonging to the policy holder’s trade or belonging to the company. where he/she is employed.


What does it mean by Replacement of Locks?

If your car’s locks are damaged, this type of coverage will pay for the replacement of:
i) The door locks and boot lock.
ii) The ignition and steering lock.
iii) The lock transmitter and central locking system.


What is Auto Gap Insurance for 6/12 months?

This is a good policy for brand new cars. If your vehicle is under 6 months old and is declared a total loss after an accident, the insurer will pay for either a brand new replacement model or give you the original purchase value – whichever is lower. This applies for brand new vehicles only, and is subject to one claim per policy year.


What does Valet Parking Theft Cover?

This type of coverage offers compensation if your car is damaged when valet parking it. It is applicable if:
i) You file a case against the Hotel or Shopping Mall.
ii) The vehicle was handed over to an authorised valet employee after due verification.
iii) The valet employee is a licensed driver.
iv) The coverage is not covered by any other policy.


What is Involuntary Loss of Employment?

This policy covers the employment of the insured person when his or her employer terminates the employment contract without citing any reason or for any reason other than those mentioned under exclusions in the policy. However, coverage will only be granted provided the cause of the unemployment is notified to the insured person at least 90 days after the commencement date of the policy i.e. claim is granted after 90 days only.


What does Personal Accident Driver/Passenger cover?

This provides a lump sum payment in the event of certain specified injuries such as loss of limb. Such injuries are rare but we would always recommend adding PA cover to your policy if it is not included – it is a small cost for peace of mind.


What is a No-claim Bonus?

No-claims bonus is a special discount given on the premium to people with an accident-free record for over a year. No-claim certificate is required from previous insurance provider to avail the discount.


What is Third Party Liability?

Third-party liability is the basic insurance you need according to UAE law. With this you are not covered for any damage to your vehicle unless there is another party at fault, and they are insured, and a claim can be made against them.


What is Comprehensive Insurance?

A comprehensive insurance policy will cover you against your own loss or damage as well as third-party property damage. This policy also ideally offers emergency medical expenses and insures against theft, fire and natural disasters.