Third-party insurance or Third-party liability insurance (TPL) is ideal for those who do not want, or cannot afford, to invest a lot in auto insurance. In the UAE, it is the minimum legal requirement of registering a vehicle. In order to understand the benefits of TPL, it is important to know what “third-party” stands for. It refers to the party that is neither the insurance provider nor the insurance holder. Third-party insurance protects against any legal liability, accidental liability, or property damage caused to the other vehicle by the insured vehicle.
This guide covers all the benefits of third-party insurance to help you understand if its the right choice for you.
Benefits of Third Party Insurance
Let’s find out more about the benefits of having a standalone third party insurance policy for your vehicle:
Covers Against Material And Bodily Damage To Third Parties
TPL only covers damages caused by you to other people’s cars. In case of an accident, the insurance company is only liable to pay to the third party involved in an accident caused by you. Therefore, this policy does not cover any damage or loss to your vehicle.
With this type of coverage, you guarantee the compensation of material and bodily damages of the victims of the other vehicle. The insurance policy in the UAE also covers:
- Property Damage: Damage to a third party’s property.
- Natural Disaster: Any extensive and widespread damage caused due to natural disaster such as flood, earthquakes, hurricanes, volcanoes will be covered by the insurance company after the decision is issued by the concerned authority in the State.
- Repair Cost: In case of an accident, the company shall repair the damaged vehicle or replace any of its parts and restore it to its pre-accident condition.
Affordable Coverage
As mentioned above, this type of protection is more affordable compared to a comprehensive car insurance policy. Third-party insurance provides coverage for your liabilities in case of an accident that resulted in an injury or damage.
Since it comes with minimal protection, the premium amount is comparatively lower. The premium and coverage options may vary from one insurer to another as it depends on the vehicle’s model and variant. Also, people can have add-on components and customise the package accordingly.
Legal Coverage And Financial Assistance
The third-party insurance policy also covers the legal liability of the insured person in the event of any permanent or temporary disability, in case of the dismissal of a third person or the damage of third party property.
During the mentioned circumstances, the insurance policy bears the legal and financial liabilities of the policyholder. This reduces the financial burden on the insured party.
Quick And Easy Process
Since getting third party liability insurance is mandatory in the UAE, the procedure is quite quick and easy for vehicle owners. Besides buying, you can also renew car insurance policy in Dubai with a few clicks.
Ensures Peace Of Mind
One of the major benefits of third party insurance is that it ensures peace of mind when dealing with a distressing situation that fully hinges on financial payments. In this case, your insurance company will come to rescue you and settle the financial issues on your behalf.
Online Purchase And Renewal Available 24/7
The policy can be bought or renewed online just by giving the basic details about your vehicle. You can also conveniently buy third party insurance any time online since it is available round-the-clock. Moreover, you can easily complete the renewal and buying process whether you are at your home or office.
Five Best Third Party Insurance Companies In Dubai
Once you buy a new car, it’s time to get it insured by some of the best insurance companies available in the UAE. Here is a list of the best car insurance companies available in Dubai.
1. AXA Insurance
AXA Insurance offers a range of insurance policies such as car insurance, health insurance and travel insurance etc. The company also offers both third party and comprehensive insurance policies along with add-on coverage options. For more details, you can contact them at the given address.
- Location: Umm Al Sheif Building, Sheikh Zayed Road, Plot #514-0, Makani
- Timing: Sun – Wed: 08:00 am to 08:00 pm | Sat – Thu: 08:00 am to 05:00 pm
- Contact: 800-AXA-292
2. Adamjee Insurance
It is a Pakistan based insurance company, offering maximum coverage against damages and third-party liabilities. Besides, the company offers hassle-free insurance procedures and innovative insurance-related services.
- Location: 3rd Floor of One by Omniyat Building, Business Bay
- Timings: Sun – Thu: 08:00 am to 01:00 pm and 02:00 pm to 05:00 pm
- Contact: +971-4-275-2337
3. Dubai National Insurance & Reinsurance
The company has been operational since 1991 and offers car insurance services that are valid until 13 months. As for adds-on, Dubai National Insurance & Reinsurance offers roadside assistance, off-road repair coverage, etc.
- Location: 7 and 9 floors and Ground Floor Port Saeed, Opposite to Deira City Centre
- Timings: Sun – Thu: 08:00 am to 04:30 pm | Closed on weekends
- Contact: +971-4-295-6700 | +971-4-5969666
4. Emirates Insurance
It is a semi-government insurance company, founded under law No 6 of 1982. Here, applicants can get policy adds-on as per their budget and convenience. The company offers third party property damage of AED 2,000,000, while the bodily injury is unlimited. To get more details, you can call or visit them.
- Location: Bayswater Building, Marasi Dr – Business Bay
- Timings: Sun – Thu: 08:00 am to 04:00 pm
- Contact: +971-4-6440400
5. RSA Insurance
RSA Insurance is one of the oldest insurance companies in the UAE that offers keen insight and exceptional expertise. To get your third party insurance policy, you can call them on the given number.
- Location: Ground Floor, Burj Al Salam No 2, Trade Centre Area, Sheikh Zayed Road
- Timings: Sun to Thu: 09:00 am to 05: 30 pm | Sat: 09: 00 am to 3:00 pm
- Contact: 800-722-RSA | +971 4 302 9800
FAQs
Is car insurance mandatory in the UAE?
Yes, third party liability insurance is mandatory for all motorists in the UAE. As per the law, your third party car insurance must cover accidental and property damages by the insured vehicle to other people.
What is third party vehicle insurance?
Third party insurance covers a policyholder against the liability or loss caused by the third party. Therefore, liability coverage and property damage coverage are the two major benefits of third party insurance.
Is third party liability insurance affordable?
Third party insurance policy comes with minimal protection, which is why the premium amount is much less than a comprehensive insurance policy.
In case you are looking for more Dubai car insurance FAQs, then check this guide out.
This concludes our guide about the benefits of third party insurance. Make sure you have it when you take your newly bought car on the road. If you haven’t bought a car yet, don’t forget to check the list of used cars for sale in Dubai. For other emirates, take a look at the listings of popular cars available on dubizzle:
- Used cars for sale in Sharjah
- Used cars for sale in Abu Dhabi
- Buy second-hand cars in Al Ain
- Used cars for sale in Fujairah
- Buy second-hand cars in Ajman
To get the latest car regulation updates in the country, stay tuned to the UAE’s leading auto blog.
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