• Rights and obligations of the insured and the insurer,
• Types of car (vehicle) insurance,
• Requirements for mandatory car (vehicle) insurance,
• Vehicle registration upon purchase.
The UAE Central Bank and transportation authorities of the emirates regulate vehicle insurance policies. Insurance companies are required to adhere to standardized regulations and cannot alter policies without approval from the regulatory authorities.
According to Article 89 of Federal Decree-Law No. 6 of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business:
- All vehicles registered in the UAE must have mandatory insurance — third-party liability insurance.
- The UAE Central Bank (CBUAE) sets the rates based on the risk level associated with each vehicle.
There Are Two Types of Car (Vehicle) Insurance in the UAE:
1. Third-Party Liability Insurance: This mandatory insurance covers all vehicles registered in the UAE. It compensates third parties for bodily injuries and property damage caused by the insured vehicle. The insurance c...