What Every UAE Business Should Know About the Legalities of Commercial Motor Insurance

Although you have a large fleet of commercial vehicles, legal obligations may stop you from purchasing suitable insurance for them. As laws and regulations related to vehicle insurance have become stricter than ever, taking care of legalities beforehand is essential. It not only helps you obtain insurance but also makes the claim procedure easier to follow than ever. The lack of legal awareness creates troubles often. For example, many businesses across industries find it difficult to get suitable commercial motor insurance, while some cannot get their claims approved as their legalities are not fulfilled properly. As a consequence of all these hassles, when mishaps take place with commercial vehicles, companies suffer from serious financial loss and legal cases, as the vehicles are uninsured.

Hence, every business should know about the legalities of commercial vehicle insurance while opting for the insurance plans. This blog is here to guide you through it.

Why UAE businesses should know about the legalities of Commercial Motor Insurance 

In the UAE, to comply with industrial regulations and government laws, it is essential for businesses to obtain commercial motor insurance. To get the most suitable insurance policy to cover your business vehicles, knowing about the legal requirements for it becomes a primary concern. Also, the legal knowledge helps to take prompt action when an unforeseen incident takes place with the vehicles. Additionally, it enables businesses to deal with unexpected third-party lawsuits. A clear understanding of the legalities helps to avoid legal penalties for delaying premium deposits and other causes.

What Are The Legal Requirments of Commercial Motor Insurance

Whenever businesses decide to go for a suitable insurance plan to secure their commercial vehicles, they must fulfill certain legal requirements.  Here they are: 

Vehicle Registration: 

It is important to register your commercial vehicles through the Road and Transport Authority in UAE before you go for the insurance plans. Once the registration is complete, you will get a registration number for every vehicle. The registration certificate comprising the number needs to be submitted while obtaining the insurance. 

Driving License of the Driver and Owner: 

To insure your commercial vehicles, getting a driving license is a crucial factor. Whether you drive the vehicle by yourself or not, you must obtain a driving license first. While hiring a driver, make sure that they are also licensed with a commercial driving license or CDL through the proper procedure of passing the relevant tests. 

Company Trade License: 

Registering your business under government regulation and getting a company trade license is another crucial legal requirement for obtaining commercial vehicle insurance. By defining your company’s name, business activities, and business location and completing the necessary approvals, you can apply for your company trade license. 

Emirates ID: 

An Emirates ID is a form of identification issued by the ICP Federal Authority (Identity, Citizenship, Customs, and Ports Security. To get an Emirates ID number, you may have to visit an authorized center and provide relevant documents and biometric data.

Residential Visa and Passport (For expatriates):

If you are not a permanent UAE citizen, you have to submit a copy of your residential visa and passport to obtain commercial vehicle insurance. They work as your legal proof of identification for staying and operating vehicles within the country.

Points to Keep in Mind to Fulfill Legal Obligations

While arranging all legal requirements, business owners must not forget some essential points so that any type of legal hassle can be avoided. The points include:

• Insurers must settle claims for commercial vehicle insurance on time.
• Policyholders must give all relevant information to the insurer when obtaining the policy. 
• If any changes that may increase the risk occur, policyholders must notify the insurer about that as early as possible. 
• Providing any sort of wrong or misleading information may cause a rejected claim or canceled policy. 

By understanding the legal requirements and keeping the essential relevant points in mind, you can get the best commercial motor insurance plan and claim it efficiently when needed.

About CoverB 

CoverB, as a trusted insurance service provider in UAE, helps business owners, contractors, and individuals to obtain the best-suited commercial vehicle insurance plans and many other insurance plans, like machinery breakdown insurance, contractors’ all-risk insurance, and so on. The experts from CoverB help in every phase of obtaining and maintaining insurance. With a trusted insurance service provider like CoverB, understanding and leveraging insurance packages becomes easier than ever

Final Words

For busy business owners or decision-makers in companies, legal documentation and paperwork can be a little complex to understand. But, if, with the help of reliable insurance service providers, you can go through all the details carefully, it will be extremely helpful in your time of need. Whether it is including add-on coverage, aligning the policy with new industrial regulations, or claiming an amount under the insurance, all tasks can be performed quickly and without stress.