UAE banks postpone payment of personal and car loans for a specified period

Radwa Saleh - | UAE

Today, the Central Bank issued a notice to all banks and finance companies to provide relief to customers affected by the rain by postponing installments and granting small interest-free loans

The sources indicated that the Central Bank has set a period of 6 months to pay installments of personal loans and car loans for customers affected by the repercussions of the weather condition without imposing fees, interest, or additional profits, or increasing the principal amount of the loan to the customer in exchange for postponing the payment of installments.

The Central Bank added that vehicles and homes that were damaged as a result of severe rain as a result of the weather condition that the UAE witnessed last week are covered by insurance in the event of an insurance policy against the risks of loss and damage, or what is called “comprehensive insurance,” and the insurance companies that issued these documents are considered responsible of compensation.

The Central Bank also directed to advise the public of the importance of reading and understanding the insurance document to guarantee their insurance rights, and then to go to the “Sanadak” unit to settle banking and insurance disputes in the event of a complaint or dispute with insurance companies.

Third party insurance does not cover the total loss of damaged cars:

The Emirates Insurance Federation indicated that if cars reach the limit of total loss as a result of rain, they will be compensated according to the value specified in the policy, but in the event that the insured has comprehensive insurance against loss and damage and civil liability, with a depreciation percentage calculated for the number of months the car has been used since the start of the insurance. .

Mohammed Mazhar Hamadeh, Vice Chairman of the Supreme Technical Committee of the Emirates Insurance Federation, continued that the problems arise if the car is insured against civil liability only (against third parties). Here, it has no value in the policy as a total loss, whether caused by the vehicle owner himself or due to rain or otherwise.

Hamada explained that if the vehicle is damaged as a result of a regular road accident, the amount of compensation is estimated according to discussions and deliberations about how much the car is worth in the market, at the time of the accident, and the compensation is paid by the insurance company that caused the accident.

About Author

Radwa Saleh
Radwa Saleh
66 Total posts

Read Also

Dubai Launches New RTA App Update to Renew Licenses, Pay Parking Faster

In an effort to streamline services and improve the user experience, Dubai has launched a significant update to the Roads and Transport Authority (RTA) app.

Dubai Roads Authority upgrades Sheikh Rashid St. to energy-efficient LED lights

Sheikh Rashid Street serves as a vital thoroughfare traversing the heart of the city, boasting an impressive expanse of 10 lanes. As one of Dubai's primary roadways, it plays a pivotal role in facilitating the flow of traffic and connecting...

Abu Dhabi Introduces 3-Day Sale, Dh100,000 Gifts & Comedy Shows this weekend

Abu Dhabi gears up for an exciting weekend filled with entertainment and festivities across its mainland, islands, and suburban areas.

Authorities decide to partially close the main road in Abu Dhabi during weekends for two months

It has been decided by the authorities that the major route in Abu Dhabi will be partially closed on weekends for a period of two months.

GDRFA sets out the conditions for obtaining a short-term UAE visa on arrival

The GDRFA outlines the requirements for obtaining a UAE visa for a limited period of time upon arrival.

The UAE grants some travelers a pre-approved visa upon arrival, with conditions

Upon arrival, the United Arab Emirates (UAE) provides certain tourists with a pre-approved visa, subject to certain requirements.

Emirati companies grant their employees maternity leave for one year and paternity leave for 42 days

Employees of Emirati enterprises are eligible for maternity leave for a period of one year and paternity leave for a period of forty-two days.

UAE: Egyptian man finds Dh149,000 cash in an ATM and returns it back to police

Abdel Fattah Mahmoud Abdel Fattah, an Egyptian national residing in Ajman, UAE, stumbled upon a significant sum of money while using an ATM. The amount, totaling Dh149,000, presented Abdel Fattah with a moral dilemma.

 The cost of traveling by air taxi in the UAE from Dubai to Abu Dhabi

How much does it cost to take an air taxi in the United Arab Emirates from Dubai to Abu Dhabi?

Jobs that qualify for a 10-year blue visa in the UAE

There are jobs in the United Arab Emirates that qualify for a blue visa, valid for a decade.

A long holiday is soon for UAE residents

Residents of the UAE will soon be enjoying a lengthy vacation. Do you plan to combine the five-day Eid al-Adha holiday with your annual leave? 

Dubai launches 30 electric buses to serve commuters in 3 major areas

The Roads and Transport Authority (RTA) in Dubai is set to introduce a fleet of 30 electric buses to cater to passengers in key areas such as Business Bay, Al Wasl Road, and Dubai Mall. Thirty electric buses will soon be available to users at...

UAE destroys over 400 mosquito site in anti-dengue campaign

The UAE health authorities have successfully eradicated 409 mosquito breeding sites identified as potential sources of dengue fever, according to a senior government official.

UAE Announces Expected Rise in Airfares for Summer Flights

Travel agents report that bookings for popular destinations like the Maldives have surged by over 10%. However, the increase in demand comes amid concerns that airfares in the UAE and globally might rise due to a shortage of available seats.

UAE fined a Company Dh450,000 for violating trading, investment rules

On Tuesday, officials in Abu Dhabi announced that an online investing and trading platform had been penalized around Dh450,000 for issuing securities without a valid prospectus.

Abu Dhabi restaurants are preparing to raise prices soon

In the near future, restaurants in Abu Dhabi plan to increase their prices.

Emirates flight cancellation: An accident in the sky damaged the Emirates plane

Emirates flight cancellation: The aircraft sustained damage in midair due to an accident.

UAE to Deploy 100 Free, Fast-Charging EV Units Across All Seven Emirates

The UAE has marked a significant milestone in its sustainability journey with the official launch of UAEV, the first government-owned electric vehicle (EV) charging network in Abu Dhabi.

Sharjah Government orders sewage connection for buildings on main roads

In a recent directive issued on Tuesday, the Ruler of Sharjah emphasized the immediate connection of residential and commercial buildings situated along the main roads in the emirate's industrial areas to the sewage network.

Dubai Launches new Dh55-Billion Community with Parks Near Al Maktoum Airport

An ambitious project totaling Dh55 billion, The Heights Country Club & Wellness, has been launched by major real estate developer Emaar Properties. Situated within a short distance from Al Maktoum International Airport, this development will...

UAE Mandates 6-Month Payment Deferrals for Banks and Insurers After Heavy Rains