• Frequently Asked Questions

    Find answers to all frequently asked queries about our insurance services and solutions

     

     

Boat

  • Normally we do not provide insurance coverage for physical damage to jet skis. But we can offer third party liability insurance for any loss or damage arising out of use of a jet ski. We can also provide personal accident cover for the driver.
  • We do not insure wooden trading dhows on principle. But we do insure wooden dhows used for pleasure or as floating restaurants.
  • In most cases, the body of a pleasure craft is made out of GRP materials. It can also be made of steel, wood and aluminium, with the engine being outboard or inboard.

Commercial

  • Yes of course! The contractor's plant and machinery are covered under our Contractor's All Risk policy.
  • No, sorry, these are non-cancellable policies.
  • No, sorry, we can only issue a burglary cover policy if there is a fire policy covering the items.
  • Definitely! As long as you have an existing fire policy covering the stock. You have the option of extending the fire policy to cover the same stock against burglary as well.
  • Yes, we do accept insurance through freight forwarders as long as the insurance is made in the name of the legitimate cargo owner.
  • No, not for all goods. It actually depends on the nature of goods (like glass items, vehicle, steel pipes, G.I. pipes, or bulk cargoes), the nature of conveyance, and the packing facility. Based on these factors an excess condition is imposed under the policy.
  • No, any loss or damage to items that are immediately affected by the above are not covered. However, your insurance can be extended to cover any loss or damage to the correctly executed items resulting from an accident that happened because of faulty design, defective material or workmanship.
  • Yes, we can provide All Risk cover for plasma TVs, as long as there is adequate packing.
  • Yes, we do! We insure a variety of pleasure crafts ranging from small to luxury crafts worth tens of millions of dirhams.
  • Yes, we do provide a degree of protection and indemnity (P&I) cover in accordance with the terms of your hull & machinery insurance cover. In addition to this, we can also offer you full P&I insurance, with liability for cargo, crew & pollution, from one of the reputable P&I clubs in London.
  • It depends. The excess charged can be a percentage of the shipment value or a percentage of claim amount or sometimes even a fixed amount.
  • Sure. We can insure your giraffes under our livestock insurance clauses.
  • Yes, of course, we can provide cover for your gift. Just remember that subject to the All Risks Parcel Post Clause, at least 25% of the value should be declared to the carrier (or on the air waybill).
  • Yes, we can cover your printing press under our Fire or Property All Risks policy.
  • You can get our Fire or Property All Risks policy for your office/shop/warehouse.
  • No, these are exclusions under the policy. However, the policy can be extended to remove these exclusions and cover the mentioned damages and injuries, with some limitations.
  • No, inland transit is usually an exclusion. However, the policy can be extended to cover inland transit, at terms to be agreed.
  • Normally, export/third country shipment cover terminates at the point of discharge of goods at the seaport/airport of arrival. But on a case-by-case basis, we do provide land transit cover from warehouse to warehouse. This usually depends on the nature of goods & the distance of the final warehouse from the port of discharge.
  • Yes. Loading/unloading is covered in the Contractor's All Risk policy.
  • Yes, the insurance is valid on any airline as long as the passenger is assigned a proper seat.
  • Yes, third-party liability is covered while the equipment is being used as a tool-of-trade within contract sites.

  • Yes, tsunami should be covered as long as the provided policy covers earthquakes.
  • No, it's not. It totally depends on you. But we would say that it is advisable.
  • Yes, of course, you can insure the shipped goods with us as long as there have been no known or reported loss up to the date and time you contact us.
  • So, this is how it goes. You will need to estimate the maximum value of the stock that you may be holding at a particular point of time during the policy. This will be considered as the sum insured and the premium rate is charged based on this amount. 

    At the beginning of each month, you will need to declare the highest value of the stock that you were holding during the previous month. The same will be considered as the declaration for that month. At the end of the policy period, the premium is adjusted based on the average monthly declarations provided by the insured.
  • No, you don't need to. It is the responsibility of the owner of the building to buy insurance cover for it since he has got the insurable interest. 

    You can purchase insurance for the contents of your shop. However, to protect yourself in the event of any damage to the building, for which you are legally liable, you may also opt for the Tenant's Legal Liability extension under our Fire/Property All Risks policy.
  • To be honest, we don't usually insure plastic factories. However, you can reach out to us and we can come to a decision based on your case.
  • There is no fixed tariff in such cases. The rate/premium is usually decided on a case-to-case basis, depending on your building, the kind of covers you are looking for, and other factors.
  • Incoterms (or International Commercial Terms) are a series of terms published by the International Chamber of Commerce. These are used to communicate the obligations between the buyer & seller with respect to transport, costs & risks. The most common incoterms are:

     

    • EXW - Ex Works
    • FCA - Free Carrier
    • FAS - Free Alongside Ship
    • FOB - Free on Board
    • CFR - Cost & Freight
    • CIF - Cost, Insurance & Freight
    • CPT - Carriage Paid To
    • CIP - Carriage & Insurance Paid to
    • DAF - Delivered at Frontier
    • DES - Delivered Ex Ship
    • DEQ - Delivered Ex Quay
    • DDU - Delivered Duty Unpaid
    • DDP - Delivered Duty Paid

  • Actual & Constructive Total Loss.
  • We'll need the following details when providing marine cargo insurance:

    - Name and address of the insured
    - Details of the consignment
    - The packing condition
    - How the cargo is packed (pallets/carton/bales/bags/bundles etc.)
    - Conveyance, like steamer in container/non-container/on-deck/breakbulk/bulk &/or airfreight/land conveyance/air parcel post 
    - The value of the consignment
    - The basis of valuation 
    - The origin and destination of the voyage
    - Whether any transhipment is involved
    - Confirmation letter from the insured about the rate and terms agreed by them
  • For providing P&I cover, we will need the vessel’s complete details, including its trading area, class, type of cargo, the number of crew members, the nationality of the crew and a survey report.
  • Item 1: Value of contract works at the completion of the construction inclusive of all materials, wages, freight, customs duties, dues and materials or items supplied by the principal.

     

    Item 2&3: The replacement value of construction plant, equipment and construction machinery which shall mean the cost of replacement of the insured item by new items of the same kind and capacity.

  • The sum insured in an Erection All Risks policy is the total value of the erection works or civil engineering works at the completion of the erection, inclusive of the freight, customs, duties & dues, and erection cost.
  • All Risk covers the loss or damage to the insured subject matter by perils of the sea, general average sacrifice, salvage charges, jettison, overloading or derailment of land conveyance, collision or contact of the vessel with any external object other than water, breakage, water damage, non-delivery and partial losses, excluding certain perils which appear under the exclusion clause.
  • An electrical clause excludes any damage to the equipment directly caused by any fluctuations in electrical current or short circuit, which subsequently results in a fire. However, the policy covers damages subsequently caused to any other items by the said fire.
  • Hazardous goods are those that have a low flash point and can easily get damaged by fire.
  • Loss of rent insurance covers the insured for the amount of rent they might lose in the event of a loss or damage to the insured property.
  • The cost of replacing an insured property or asset in case of damage or loss.
  • In addition to the primary covers, our Fire Policy has extensions for earthquakes, storms, floods, tempest, the impact of vehicles and aircraft, bursting of pipes, riots and strikes, and malicious damage explosion.
  • Classification societies are independent, non-profit, non-governmental committees representing ship owners, shipbuilders, engine builders & underwriters. They define the standards that ensure that ships are built & maintained in seaworthy and safe conditions.

    Classification is compulsory for ocean-going vessels and vessels above a certain size.
  • In addition to everything that's covered under the "C" clause of the institute cargo clauses, this one also covers damages in the event of non-delivery of an entire unit as per bill of lading &/or entire container (damages are not covered).
  • • Material Damage
    • Third Party Liability
  • Fire and Lightning.
  • In CPM policies, the sum insured is calculated based on the current new replacement value irrespective of the original purchase value.
  • A Fire Insurance policy provides cover for risks of fire and other damages that occur due to fire. A Property All Risks policy provides cover for burglary and accidental damage in addition to covers for fire and its allied perils. Therefore, Property All Risks has a higher premium.
  • In the case of insurance, the "mode of transport/transit' will be how the goods being insured are transported from one place to another. The mode of transit/transport could be a steamer in container/non-container/bulk/break bulk, and/or air freight, and/or land conveyance, and/or parcel post etc.
  • The standard war rate is 0.05% as per the war scale for non-war-prone areas.
  • You should buy an annual policy for Contractor's Plant and Machinery if your machinery is going to be used in different locations throughout the year.
  • Chandeliers, glassware items, sugar shipments & bulk shipments in general.
  • The thing is, the value of machinery is likely to increase every year. At some point in time, the value of some of the parts may even exceed the purchase value. Hence, in order to bridge this gap, the machinery should be insured for its new replacement value.
  • No, the value of your existing property needs to be declared and will be covered under section I (material damage). You will be charged a premium will be charged for the same.

Group and Credit Life

  • Kindly check your policy terms and conditions or reach out to your Relationship Manager to confirm.

Value Added Tax (VAT)

  • Yes, if the policyholder seeks any policy extensions after the initial premium payment, the additional premium will also be subject to the 5% VAT. The above is applicable for medical and other non–life insurance only. Life insurance premiums will be exempt, as presently understood.
  • The Ministry of Finance in the UAE has published the VAT Decree – Law in an unofficial translation on August 27, 2017, and it was officially announced that VAT will be applicable in the UAE from January 1, 2018.
  • Yes, effective January 1, 2018, all medical and non–life insurance policies – new and renewed – will be subject to 5% VAT. Life insurance policies will be exempt from VAT, as presently understood. Please refer to the following infographic for further information.
  • If the period of non–life insurance cover spans on or after 1 January 2018, VAT would be applicable on the premium (on a prorate basis if applicable). This applies to new policies being underwritten or policies which are renewed before 1 January 2018. Life insurance policies will be exempt from VAT, as presently understood (i.e. no VAT will be applicable on such premiums).
  • Motor, Medical and other forms of Non–Life insurance policies are expected to be subject to VAT at the standard rate of 5%. The policyholder will pay the insurance company 5% of the total premium reflected in the policy schedule.
  • Oman Insurance Company will collect the VAT from policyholders for the insurance services provided and will remit this to the UAE Federal Tax Authority (FTA) on a periodic basis.
  • These are a few examples of VAT exempt activities:

     

    - Life Insurance Services
    - Margin based financial services (e.g. interest)
    - Sale or lease of residential property (other than the first supply)
    - Sale or disposal of shares and hedging activities
    - Loans provided to employees

    * The specific list of exempt supplies will be communicated once the VAT Regulations are published.

  • VAT on the non–life insurance premiums must be paid to OIC, irrespective of the VAT registration status of the insurance broker or agent. VAT that is charged by OIC to the policyholder and collected by the insurance broker or agent, will be paid by OIC to the UAE FTA.
  • Yes, only if VAT has been charged and you have paid the VAT amount, we will refund the premium and VAT. No VAT will be refunded if there is no VAT charged with the initial premium.
  • Our VAT registration number is 100258594900003. Our VAT registration certificate is available for download here.
  • Value Added Tax (VAT) is a tax on consumption. It is a transaction-based tax and will be charged on most transactions supplied by VAT-registered businesses. In the GCC, the standard VAT rate will be 5%.