uae insurance snag for electric vehicles over repairs
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

UAE insurance snag for electric vehicles over repairs

Arab Today, arab today

Arab Today, arab today UAE insurance snag for electric vehicles over repairs

The number of eco-friendly cars,
Dubai - Arab Today

With more electric vehicles (EVs) expected to hit UAE roads in the coming year, the new market may hit an insurance snag with uncertainties over repairs.
It is mandatory for every veh­icle operating in the UAE to be covered by insurance with the premium, or the amount of money a customer pays for insurance, calculated based on numerous variables from the owner to the type of car.
A policyholder’s age, location and previous driving history is taken into account, coupled with the make and model of a car. But while the cost of parts has been compiled for petrol-fuelled cars, for EVs it is still a nascent market with little historical data.
"The average claim cost isn’t very clear," said Issam Mouslimani, head of regional retail product offering at insurer Axa Gulf, which last month launched EV insurance coverage, although the policy is currently designed for Tesla owners in the UAE.
Its UAE plan will cover damage, third party injuries and property damage up to Dh3.5 million, as well as natural perils, Oman extension and free roadside assistance. Mr Mouslimani said the car’s value is the main insurance priority.
"The value of the car is very clear for Tesla, but what isn’t clear are the other components such as the expected cost of a certain part and expected number of accidents during the first year," he said.
With Tesla’s recent launch in the UAE coupled with government policies such as Dubai’s target of 20 per cent EV and hybrid vehicles on the streets by 2030, the number of these eco-friendly cars throughout the country is expected to rise.
And for insurance, the segment is still very small. "It’s still very minor compared to our portfolio – less than 1 per cent," Mr Mouslimani said. "But we see it moving forward and going in line with the national strategy of 20 per cent."
The company’s early-mover status as the go-to insurer for EVs will be its biggest advantage in the region. "Any insurance company in this part of the world hasn’t had experience to insure such vehicles so we’re leveraging from global expertise," he said.
Axa is already the insurer of choice for Alex Sanders, an Abu Dhabi Tesla owner. His 2015 Model S P90D with Ludicrous speed mode was purchased in full given that there were no financing options available. He paid about Dh500,000 for the car plus shipping and import duties.
Add insurance costs and that is an even larger figure. For comprehensive insurance, the Insurance Authority stipulates a minimum of Dh1,300 for a saloon and Dh2,000 for a 4x4, while the maximum will be 5 and 7 per cent of the car’s value, respectively.
Mr Sanders paid a Dh11,044 premium for his full comprehensive policy plan from Axa at 2.4 per cent – when the standard is around 5 per cent. "I was lucky and used a broker, Gargash Insurance – and insured other cars to make this possible," he said.

Source: The National

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae insurance snag for electric vehicles over repairs uae insurance snag for electric vehicles over repairs

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae insurance snag for electric vehicles over repairs uae insurance snag for electric vehicles over repairs

 



GMT 10:10 2017 Thursday ,09 February

3 Important Elements You Have to Consider

GMT 04:03 2017 Monday ,24 April

Bella Hadid ‘dying’ to visit Palestine

GMT 19:25 2016 Wednesday ,25 May

The Brooklyn Desk by Oeuf NYC

GMT 07:49 2018 Friday ,05 January

2 Russian servicemen killed

GMT 07:58 2018 Monday ,01 January

Italy orders N. Korea's envoy to leave

GMT 08:45 2017 Wednesday ,20 December

US military imagines war without GPS

GMT 17:26 2017 Sunday ,17 December

Putin thanks Trump for help in foiling attack plot

GMT 22:19 2017 Monday ,16 October

Cairo-hosted Fatwa conf. new contribution

GMT 02:27 2016 Friday ,10 June

Video hints Japan abetting illegal ivory trade

GMT 07:04 2017 Wednesday ,19 April

1,883 Bahrainis found jobs in March

GMT 14:24 2016 Tuesday ,22 November

Citi and JPMorgan top list of ‘globally banks’

GMT 21:43 2017 Friday ,01 September

People question Nazaruddin`s repatriation expenses

GMT 09:41 2017 Wednesday ,19 April

OIC concerned over violence in Mali

GMT 01:30 2017 Friday ,27 October

May22/Jun21

GMT 05:38 2016 Friday ,30 December

Dubai Airports divert 13 flights due to heavy fog

GMT 11:38 2017 Saturday ,14 January

Mexico names new ambassador to US

GMT 12:03 2017 Wednesday ,22 March

Kuwait to mark World Water Day

GMT 15:00 2017 Wednesday ,27 September

HM King receives invitation from Egyptian President

GMT 02:45 2017 Tuesday ,05 December

President Bashir arrives in Chad

GMT 02:45 2017 Wednesday ,16 August

Turkmen President Visits Pakistan
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday