UAE: Do I have to pay ‘excess charge’ to insurance company if someone hits my car while parked?

UAE: Do I have to pay ‘excess charge’ to insurance company if someone hits my car while parked?

In the Emirates, all vehicles need to have at least third-party insurance coverage, if not a comprehensive one

Published: Sun 2 Apr 2023, 9:18 AM

Question: Someone hit my car while it was parked. I parked in a proper slot legally. The insurance company is asking me to pay something called an 'excess charge'. Is this legal?

Answer: Pursuant to your query, it is assumed that the vehicle insurance policy which you have obtained for your car is a third-party liability and not a comprehensive one.

In the UAE, all vehicles need to have at least third-party insurance coverage. This is in accordance with Article 4(1) of the Insurance Authority Decision No 25 of 2016, which states, “The Insurance Company should issue a third party liability insurance policy on all motor vehicles licensed in the State when it is so requested by the related parties."

Based on the aforementioned provisions of law, it is assumed that your insurance company is calling upon you to bear additional charges (premium) on your insurance as your car is covered by third-party liability insurance. Therefore, as your car is damaged by some vehicle while your car was parked in a parking area, then in such cases insurance coverage insurance