Recap: A-Z Of Useful Car Insurance Glossary Terms
Let BuyAnyInsurance demystify insurance terminology. With this glossary, you can have a better understanding of what you are purchasing with your policy.
Need a quick recap of useful insurance terms? We have compiled 16 most useful terms.
1. Agency Cover:If you are in an accident and your car needs to repair, the repairs would be carried out by the authorized dealer (for example, a Nissan would get fixed by the Nissan dealer workshop). If the policy does not include Agency Cover, then the car would be repaired in a local workshop/garage.
2. Ambulance Service:In the case of an accident, ambulance service charges for any injured or deceased person shall get coverage by the insurance company.
3. Auto Gap Insurance for 6/12 Months:It is a good policy for brand new cars. If your vehicle is under six months old and has become 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. It applies to brand new vehicles only and is subject to one claim per policy year.
4. Comprehensive Insurance:A comprehensive insurance policy will cover you against your 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.
5. 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 in case of an injury in a road accident. Note that this will only apply if you get an injury in the vehicle that insured with Emergency Medical Cover.
6. 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 purpose other than those mentioned under exclusions in the policy. However, you will only receive cover if the insured person gets the cause of the unemployment at least 90 days after the commencement date of the policy, that is to say, the claim shall issue after 90 days only.
7. 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 disasters.
8. No-claim Bonus:A 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 comes from the previous insurance provider to avail the discount.
9. Off-Road Cover:Provides compensation if your vehicle breaks down off-road. However, it only applies if:
- The car comes with 4-wheel-drive specifications, that is to say, it must be an off-road vehicle. What’s more, the excess paid on repairs will have to double the amount that would pay for on-road accident repairs.
- The car did not damage in the event of a race or competitive sporting event. For example, the insurer will not pay out if you have damaged your vehicle while taking part in the Gulf News Desert Run or Abu Dhabi Desert Challenge.
10. Personal Accident Driver/Passenger:It provides a lump sum payment in the event of specific specified injuries such as loss of limb. Such injuries are rare, but we would always recommend adding PA cover to your policy if it does not include – it is a small cost for peace of mind.
11. Personal Belongings:This type of coverage offers compensation for personal belongings lost or damaged in your car. It includes:
- Loss or damage to money, tickets, documents, or securities.
- The theft of any property from an open or convertible vehicle unless it’s in a locked boot.
- Locked glove compartment.
- Goods or samples carried in connection with any trade.
- Goods and items belonging to the policy holder’s trade or about the company where he/she is a job.
12. Replacement of Locks:If your car’s locks are damaged, this type of coverage will pay for the replacement of:
- The door locks and boot lock.
- The ignition and steering lock.
- The lock transmitter and central locking system.
13. Roadside Assistance:Breakdown Cover (sometimes called Roadside Assistance) is the service that assists drivers whose vehicles have stopped working while they were driving. If you break down, a mechanic will come to your location and try to fix any minor problems. If you do not follow, they will tow the car at the nearest garage covered with insurance policy.
14. Third Party Liability:Third-party liability is the basic insurance you need according to UAE law. With this insurance, you do not receive cover for any damage to your vehicle unless there is another party at fault, and they receive insurance, and you can make a claim against them.
15. Valet Parking Theft Cover:This type of coverage offers compensation if your car receives damages when valet parking. It is applicable if:
- You file a case against the Hotel or Shopping Mall.
- The vehicle was handed over to an authorized valet employee after due verification.
- The valet employee is a licensed driver.
- Any other policy does not cover the coverage.
16. Windscreen Damage:Windscreen cover means that your policy covers the replacement of your windscreen in the event it is damaged.
What are 3 main types of insurance?There are three main types of insurance: property, liability and life insurance.
What is insurance risk?Insurance risks are the uncertainty that arise from the occurrence of possible events.
What is insurance third party?A third-party insurance is the type of car insurance cover that only covers for the third party damages. The person receiving the claim would be the one whose car has been damaged by the policy holder’s vehicle.
What are the contact details of the UAE insurance authority?You can call and email to the insurance authority of UAE between 7:30AM to 2:30PM from Thursday to Sunday. Here are the contact details:
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Originally published Jan 23, 2019 01:43:29 AM, updated Jul 20, 2022