Claims from driving into flooded areas increasingly denied as market matures; policyholders urged to understand coverage and opt for comprehensive plans.
Insurance companies in the UAE are taking a harder line on motor claims arising from vehicles driven into flooded areas, with a growing number being rejected on grounds of policyholder negligence, industry executives have revealed.
The shift comes as the local insurance market matures following severe weather events, including the historic rains of April 2024 and December 2025, which led to widespread flooding. Insurers are now applying stricter interpretations of policy terms, particularly for motorists who ignore warnings and enter known flooded wadis, high-risk zones, or heavily submerged roads.
“Insurers are applying stricter policy interpretations, with a growing number of claims declined on the grounds of negligence — such as driving into known flooded wadis, designated high-risk zones, or heavily flooded roads where coverage exclusions may apply,” said Ralph Kabban, CEO of United Insurance Brokers (UIB).
This tightening is part of a broader industry trend driven by rising repair costs, advanced vehicle technology, and the growth of electric vehicles, all of which are pushing insurance premiums higher. In response, consumers are becoming more risk-aware and are increasingly opting for comprehensive coverage over basic third-party policies.
“Customers today are far more conscious of policy exclusions, deductibles, and the importance of having adequate and comprehensive motor and property coverage,” noted Anas Mistareehi, CEO of eSanad. He added that the market has reached a higher level of operational maturity, with insurers strengthening catastrophe-response frameworks and improving coordination with intermediaries.
The December 2025 rains acted as a significant stress test for the sector, highlighting the importance of preparedness and clear communication. Hitesh Motwani, Deputy CEO of InsuranceMarket.ae, pointed to the role of timely government warnings and public alerts in helping to limit losses and reduce risk exposure.
Regulatory oversight has also intensified, with the Central Bank of the UAE reminding insurers to settle valid claims promptly. The industry’s evolution signals a new era of policyholder responsibility and insurer selectivity, urging residents to thoroughly understand their coverage and exercise caution during extreme weather events.
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