How car insurance claims rose within the UAE after the Covid-19 stoop – ArabianBusiness.com
Claims from car insurance in the United Arab Emirates have skyrocketed in recent months and, according to new figures, are now back on a similar level as before the outbreak of the coronavirus.
Covid-19 and its subsequent impact had resulted in fewer people and drivers on the road, which resulted in a sharp drop in insurance claims. The insurance companies also adjusted the prices accordingly in order to take account of fewer accidents and repair claims.
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However, with the UAE's strong vaccination campaign, the country is opening up to tourism and citizens are returning to the office.
This reverses this trend towards fewer accidents and insurance claims.
RSA Insurance told RoadSafetyUAE that claims ratios are increasing and have increased nearly 45 percent in recent months compared to the months of Covid-19.
This is now at a similar level to 2019, before the Covid-19 pandemic.
RSA observed this alarming result, especially given that some Covid-19 restrictions are still in place, domestic activity has not returned to 2019 levels, but claims rates have already.
The company said the main causes of these claims were preventable. A large part of the damage (around 40 percent) in the last few months made up claims due to driver misconduct. This includes accidents caused by excessive speeding and insufficient distance between cars.
Sunita Pais, Head of Claims, RSA UAE, said: "To date, many countries are still implementing restrictions to control and contain the spread of Covid-19 and its variants. The United Arab Emirates are recognized as one of the first countries in the world to resume similar economic activity, so this trend towards rising car insurance claims should serve as a reference for other markets.
"Also, many UAE residents are likely to stay in the country this year as many countries still impose severe travel restrictions, which could increase road accident rates."
Thomas Edelmann, Founder and Managing Director of RoadSafetyUAE added: “Insurance companies have large amounts of data that can play an important role in understanding accident patterns. We are grateful to RSA for sharing their data as all stakeholders involved want to move the discussion from anecdotal evidence to fact-based evidence. It goes without saying that the right insurance coverage is an essential part of road safety and we appreciate the knowledge that RSA shares with the general public. "