• Sat. Jun 15th, 2024

Central Bank of the UAE Allows Loan Repayment Deferral and Confirms Insurance Coverage for Weather-Related Damages


Apr 23, 2024 #Business, #UAE, #Weather

Dubai, April 23, 2024 – In response to the recent adverse weather conditions that have impacted residents across the UAE, the Central Bank of the UAE (CBUAE) has taken proactive measures to alleviate financial burdens on affected individuals. Today, the CBUAE issued a notice to all banks and insurance companies, mandating the deferral of repayment instalments for personal and car loans for a period of six months for customers affected by the weather-related repercussions.

The directive ensures that customers facing financial strain due to the aftermath of heavy rains and unstable weather conditions can defer loan repayments without incurring additional fees, interest, or other charges that would increase the principal amount of the loan.

Furthermore, the CBUAE clarified that damages to vehicles and homes resulting from the recent weather phenomena are covered by insurance policies, particularly comprehensive insurance. Insurance companies are obligated to provide indemnification for losses incurred due to the adverse weather conditions.

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The same principle applies to homes and buildings covered by insurance policies. Owners of real estate properties affected by the recent rains and weather conditions are entitled to have their properties repaired, with insurance companies responsible for covering the costs of damages.

The Central Bank emphasizes the importance of individuals carefully reviewing and understanding their insurance policies to safeguard their rights. Should any disputes or complaints arise with insurance companies, affected individuals are encouraged to approach SANADAK, the financial and insurance ombudsman, for assistance and resolution.

These initiatives underscore the CBUAE’s commitment to supporting individuals and businesses during challenging times, ensuring financial stability and protection for all residents of the UAE.

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