Cost of repairing insured cars reaches AED5 billion in UAE
The volume of compensations paid out by the insurance companies operating in the UAE to repair insured cars during last year reached AED4.9 billion, according to a report.
The report, issued by the Insurance Authority, says that paid compensations accounted for 64 per cent of the total earned premiums, which amounted to about AED7.88bn, reports UAE-based Aliqtisadi.
According to the annual report, compensations include documents against loss, damage and civil liability (comprehensive insurance) as well as documents of civil liability (third party insurance).
The total premiums collected by all national insurance companies in the vehicle sector amounted to AED 5.6bn, while compensations they paid reached AED3.7bn, accounting for 66.6 per cent of total premiums.
Meanwhile, foreign insurance companies operating in the country in the automotive sector paid AED1.2bn compensations of total premiums, which amounted to AED2.2bn, accounting for 54.3 per cent.
The report shows a continuous growth in the value of the compensation paid from the total volume of premiums since 2009, as the total cost of accidents and repairing vehicles through the insurance system amounted to more than AED25.5bn between 2009 and 2015.