DUBAI: This week saw a noteworthy development from the UAE’s premier general insurance company. Orient Insurance Company extended its list of services by offering coverage for war risks in the UAE in relation to cargo, personal automobiles, and residences a type of protection that was being neglected all along without anyone realizing it.
The new products will be introduced at a time when firms transporting goods via regional trade corridors are experiencing a much more challenging risk landscape. Among the dangers that conventional motor and household insurance products usually fail to cover are political upheaval, terrorism, sabotage, and civil unrest.
What’s Actually Included in the New UAE War Risk Cover
This new range of products caters to four types of risks, each designed for a particular market sector . Marine War on Land offers protection for cargo and goods exposed to war risks while being transported inland. This is especially relevant for importers and logistics companies handling complex shipments with multiple legs, from the time goods depart from the port and are moved via road transport.
Secondly, Marine Cargo War Risks offers further insurance coverage for goods that travel by sea. The risks associated with war, piracy, and political unrest have now become part of the insurance coverage for freight forwarders and exporters transporting their goods via sea transport.
This third extra covers the war risk insurance of private cars in the United Arab Emirates. The Political Violence coverage for Private Vehicles shields car owners from damage resulting from war, terrorism, sabotage, strikes, and riots, which are usually not covered under ordinary motor insurance policies.
Orient also introduced an insurance coverage product to its residents. The property owners in the UAE can get political violence coverage on their assets, which would help them in case any structural damage occurred.
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The Significance of This Launch for Businesses
The timing of this particular venture is crucial for the following reasons. Companies that do business in the United Arab Emirates and engage in activities related to shipping, exports, and imports are working in extremely active areas with great geopolitical tensions. In case a shipment is lost as a result of one of these factors, there will be financial liability that regular insurance will not provide coverage for.
The type of cover against the threat of war provided by UAE is normally available to only big corporations which possess a team dedicated solely to managing risks. With the expanded coverage offered by Orient, smaller sized companies engaged in importing and forwarding cargo now get access to such high-level cover.
The implication for practice is clear. Any company transporting cargo via a Gulf port and through a regional corridor by road is at risk for every segment of the trip. Without war risk and political violence insurance coverage, any incident that results from an occurrence would not be covered under their current policy.
Orient Provides Protection Not Found in Regular Policies
In addition to the business sector, the growth of Orient Insurance Company is pertinent to the residents of the United Arab Emirates. The regular insurance policies available in the UAE include protection against fire, theft, and accidents. War, terror, and political violence fall into a different bracket; most insured people lack coverage in these areas unknowingly.
The new home and car insurance products make all of this different. The person who owns the house, which gets damaged because of a political violence case, will have an insurance cover. The car owner involved in an unrest case will be able to use the insurance cover. To a nation which is perceived as a peaceful nation, it is vital to have insurance coverage mechanisms.
Commitment of Orient to Dealing With a Complicated Risk Environment
President Omer Elamin of Orient Insurance Group described the launch as one rooted in confidence, an attribute that the UAE promotes internationally. In this regard, he mentioned that in view of the increasing volumes of trade and a more complicated risk environment, the insurer was committed to ensuring that businesses operated with little risk and that people were secure.
This is a true reflection of what currently goes on in the UAE insurance industry. The demand for insurance policies to protect against war risks in the UAE as well as any other form of political violence has increased alongside the increase in trade and investments made by the country. With more cargo going through different channels, there is need for such coverage.
A Signpost on Where the UAE’s Insurance Sector Is Headed
The decision of Orient is also indicative of another trend that is beginning to be seen within the insurance industry in the UAE. Wars and political violence incidents are relatively rare occurrences in the past in this part of the world. However, their financial ramifications for the company, home owner or logistics company can be enormous.
Providing war risks insurance coverage in the UAE for both personal and business use indicates that the market is now developing into one that manages risks in an all-encompassing manner. This comes at an opportune moment for businesses and individuals who have been bearing these risks without knowledge thereof.
