The record-breaking thunderstorms that struck the UAE last month have caused more than just a headache for residents. Dubai-based insurance brokers report a surge in car insurance claims, with estimates suggesting damages exceeding what would normally be seen in over a decade.
While authorities haven’t released official figures on the number of affected vehicles, insurance companies are grappling with a massive influx of claims. “We have not seen so many claims caused by a single natural incident,” insurance providers and brokers say.
Industry experts estimate that around 100,000 cars were damaged by the floods, with many being declared total losses due to water submersion. Karan Mulani, from Pioneer Insurance Brokers, puts it starkly: “An estimated 12 years’ worth of insurance claims were made in only a few days last month.”
The damage wasn’t uniform, with some cars quickly repaired and back on the road. However, many remain inoperable and have been written off by insurers. This situation has led to a high demand for breakdown recovery services and delays in arranging vehicle towing.
“We had to manage the expectations of our clients,” says Susan Manalaysay Francisco, a Dubai insurance specialist. “This includes those who made claims even before the rains stopped.”
The surge in claims has created a backlog, with some insurance providers still processing claims and motorists waiting for payouts. Muhammad Irfan Usman, another broker at Pioneer Insurance Brokers, anticipates it could take two to three months for the situation to normalize. He advises patience, as insurance companies are actively working on the claims.
What to Expect During the Claims Process
Neeraj Gupta, CEO of Policybazaar.ae, emphasizes that processing times can vary depending on the complexity of each claim. Typically, for straightforward claims with complete documentation, the turnaround time can be two to three weeks. However, factors like claim complexity, evidence availability, and negotiations with third parties (in accident cases) can extend this timeframe.
Here are some tips from Gupta to ensure a smooth claims process:
- Be patient: Processing times can vary depending on the claim’s complexity.
- Ask your insurer for an estimated timeframe.
- Submit complete and accurate documentation promptly.
- Cooperate with the insurance company’s investigation.
- Follow up regularly.
- Don’t attempt to start a flooded car: This could worsen the damage and potentially void your insurance coverage.
- Move your car to a safe location (if possible) to prevent further damage.
- Keep records of expenses: Maintain receipts for towing or storage costs if you incur them while waiting for the insurance company’s response.
The UAE’s insurance industry is working through a historic surge in car insurance claims. While there may be delays, following these steps can help ensure a smoother claims process for affected motorists.
