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Insurance jargon, debunked

When it comes to car insurance, accessories are all the “additional” elements which were originally installed in your car, for example: radio, stereo equipment, preinstalled telephone, and the like.

The things you would typically refer to as your accessories (your laptop or your bag) are called personal belongings in an insurance contract.


It’s the amount that is deducted from your claim payment. In other terms, it’s the share of the loss or damage that you need to cover yourself.

For instance, when you got your insurance, your car was valued at AED 70,000. For such a value, your deductible equals AED 500. If you file a claim for damages amounting to AED 20,000, your total insurance payout will be

AED 20,000 - AED 500 = AED 19,500

Having to pay a part of the damage yourself might sound unfair at first, but it’s the best way to keep the cost of your insurance at a good price. Without the deductibles, the insurance premium would skyrocket, because the amount of paid out claims would be much higher.


It’s another word for deductible.

Fully comprehensive insurance

It's insurance that covers not only damages to others, but your things as well. Let's say you got into an accident and were found guilty for causing it. A Third-party liability policy would cover only the damages to the other person and his car.

Comprehensive insurance, on the other hand, will cover damages to your car as well - even if you caused the accident.

Our Beema Pay-per-kilometer insurance policies are comprehensive covers.

Insurance Authority

The Insurance Authority of the UAE is the government body which supervises and regulates the insurance business in the country. Among other things, the Insurance Authority is responsible for:

  • Drafting insurance-related laws
  • Issuing and renewing the insurance licenses
  • Drafting the requirements for car insurance policies
  • Resolving disputes

For example, the Insurance Authority also lays out the minimum requirements and the policy wording for third-party liability insurance.

Insurance period

It’s the total duration of the validity of your insurance. For example, if you get a yearly insurance cover on 1 April, the insurance period will be from 1 April to 31 May of the following year.

Insurance policy

A document issued by the Insurance company which sets out the rules and responsibilities between the insurer and the insured person (you).

It contains a description of the benefits, the insurance payout, the limitations, and the exclusions. You can download our policy handbook here

Insured person vs Vehicle owner vs Licensed driver

The insured person is the one who buys the insurance cover and therefore enters into an insurance contract with the insurance company. In plain words, it's you.

In the UAE, you can buy insurance only if you are the registered owner of the car you want to insure. It follows that the insured person and vehicle owner are the same.

A licensed driver does not need to be the insured person. It can be anyone who can legally drive in the UAE and has received your permission to drive your car. It can be your spouse or another first-degree relative.

Minimum premium

The Insurance Authority of the UAE decided to put a lower limit to the premium that insurance companies can offer to their customers for car insurance. This is called the minimum premium and all companies must respect this threshold in the prices they offer.

There is a very good reason for this: if the Insurance Authority had not made this decision, the so-called price dumping or price burning would inevitably bring to a future situation in which insurance companies would not have sufficient funds to pay out the claims to their customers.

NCD (No Claims Discount)

No-claims discount (NCD) is an additional discount you get for every year that you drive without filing for a claim.


Remember how we said that the insurance company and the insured person enter into an insurance contract?

In this contract, the insurance company commits to settle your claim, repair your car, and give you all the extra perks listed in the contract. The premium is what you have to pay in order to receive these services.

In other words, it’s the price you have to pay to buy your insurance cover.

Total loss

Sometimes, the damage caused to your car during an accident can be so severe that it doesn’t make sense to repair it, because the cost of repairs would be higher than the car’s value. This is called Total loss.

In this case, the insurance company will not repair your car, but will pay you your car’s value in cash, so that you can buy yourself a new vehicle.

Multi-Trip travel cover

Covers your travel to multiple destinations in a year for 62 days per trip.

Single Trip travel cover

Covers you for a short trip and expires once the trip is over.

Baggage and Personal Effects Coverage

Covers a policy holder’s baggage, passport, credit cards, and personal effects.

Lost Luggage

Secondary coverage that is paid when a policy holder’s checked luggage is permanently lost.


Items that are of value to the insured person, including jewellery, watches, items made of or containing precious metals or semi/precious stones, furs, electronics, etc.

Buildings insurance

Buildings insurance covers the structure of a building, including the walls, roof, chimney, windows, and any fitted fixtures

Contents insurance

Contents insurance covers all removable items in your home. This includes clothes, furniture, electrical appliances, carpets, and curtains.