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Chapter Two: Obligations of the Insurance Company

Effective from 22/9/2016
  1. The Company shall compensate the Insured for loss or damage that occurs to theInsured Motor Vehicle and its accessories while in the vehicle, includingdamaged parts and spare parts, in the following cases:
    1. If loss or damage arises from an accidental run-over, collision, turnover, orincident, or as a result of an unexpected mechanical breakdown or as a resultof wear and tear of parts by use;
    2. If loss or damage arises from an external fire or explosion, spontaneouscombustion or lightning;
    3. If loss or damage arises from robbery or theft;
    4. If loss or damage arises from a third party willful act;
    5. If loss or damage occurs during land transport, inland water transport,elevators or lifting machinery including loading and unloading processesrelated to the aforementioned transport processes; and
    6. Any additional coverage to be agreed upon under this Policy or special ridersto it.
       
  2. Upon the occurrence of an accident, the Company shall:
    1. e. Repair the Motor Vehicle or any of its parts, accessories, or spare parts andrestore the vehicle to its pre-accident condition.
    2. f. Pay the amount of loss or damage in cash to the Insured if this is agreed onwith the Insured.
    3. g. Replace the damaged Motor Vehicle in case of a total loss, unless the Insuredrequests the Company to pay them the amount in cash. In this case, theCompany shall respond to the Insured's request.
       
  3. If the Insured requests that new original parts are to be installed in lieu of theparts damaged during the accident or are to be paid for in cash, the Insured willbear the Depreciation Percentage set in Schedule (1) of the final value of thepurchase invoice. In case of taxi vehicles, public transport vehicles and rentalvehicles, the Insured will bear the Depreciation Percentage set in Schedule (2).
     
  4. The Insured may assume the repair of damages that occur to the Motor Vehicle as a result of an insured accident hereunder, provided that the estimated repair costs do not exceed the value of repair agreed upon in writing with the Company.
     
  5. If the Insured Motor Vehicle is lost, proves to be irreparable, or that costs of repair exceed 50% of the Motor Vehicle value before the accident, the insured value of the Motor Vehicle agreed upon between the Insurer and the Insured on signing of the Insurance Policy will be the basis of calculation of the compensation of loss and damage insured hereunder after deduction of the Depreciation Percentage of 20% from the insured value, and taking into account the fraction of insurance period (i.e., the proportion of the period from the commencement date of the insurance period to the date of the accident to the total insurance period).
     
  6. If the Motor Vehicle becomes unroadworthy due to loss or damage insured hereunder, the Company will bear the necessary costs of safeguarding and transporting the Motor Vehicle to the nearest repair shop, in order to deliver it to the Insured after repair.
     
  7. If the damaged Motor Vehicle is repaired with repair shops approved by the Company, the Company shall insure that the Motor Vehicle is repaired properly, carefully and professionally and that the work is warranted by the repair shops. The Company shall ensure that the Insured is enabled to have the Motor Vehicle checked by any approved motor vehicle examination agency in the UAE to make sure that the Motor Vehicle has been properly repaired without affecting the technical examination of the damaged Motor Vehicle at the concerned official authorities. If it is found that the repairs are below required and recognized technical standards, the Company shall address the issue(s) with the repair shop until the Motor Vehicle is professionally repaired and delivered to the Insured.
     
  8. In case of any conflict between the Company and the Insured concerning the value of damages or the amount of compensation, the Company will appoint an Authority-licensed and registered Surveyor and Loss Adjuster to determine the value of these damages or the amount of compensations at the Company's expense. If the expert's opinion is disapproved, either party may request the Authority to appoint an expert licensed by it at the expense of that party, and that the expert's charges will be eventually borne by the party for whom the report was not in their favor.