Motor insurance is a type of agreement signed between the insurance company and the owner of the vehicle. The agreement provides monitory benefits to the vehicle owner in case of accident, damage or theft. Insurance companies agree to pay for such damages when the vehicle owner pay monthly or yearly premium. Many states have made it compulsory to have motor Insurance in Dubai and it provide the policy holder protection against any misfortune or loss. This piece of information is not sufficient to have insurance, instead; one should understand about the varying aspects of motor insurance and the related schemes. Let’s take a look on the different types of insurances and how it works:
· Property Insurance: This type covers physical damage caused to the vehicle and also the theft.
· Medical Insurance: this type covers the compensation provided against the injury or medical expenses.
· Liability: This covers the injury or medical expenses for which the vehicle owner is responsible.
Basics of Auto Insurance
One should know about some basic information about their auto insurance scheme:
· The policy should provide complete coverage to you as well as the family members.
· The policy also provides coverage if someone else is driving your car (who is not a family member).
· Insurance provides coverage if he vehicle is used for personal reasons i.e. for personal commute. However, if the vehicle is used for commercial purpose or if the policy holder is driving a rented car then this is not covered by the insurance companies.
Insurance is mandatory
Government has made motor Insurance services Dubai mandatory. This decision is taken by the government for safeguarding vehicle owners against unexpected damage and accidents. At the time of purchasing a vehicle individuals are bound to purchase insurance and after that have to renew it once expired.
