Posted inBanking & InsuranceNews

UAE Central Bank calls for six-month loan repayment deferment to assist flood-affected residents

Insurance companies are obligated to provide compensation for losses and damages sustained.

Central Bank of the UAE
Central Bank of the UAE. Credit: WAM

The Central Bank of the UAE has taken measures to assist individuals and families affected by recent adverse weather conditions. In response to the aftermath of heavy rains, the Central Bank has issued a directive to all banks and insurance companies, allowing for the deferment of personal and car loan instalments for six months. This deferral comes without any additional fees, interest, or increases to the principal amount.

Furthermore, the Central Bank has clarified that damages incurred to vehicles and homes due to inclement weather are covered by insurance policies, specifically those with comprehensive coverage. This means that insurance companies are obligated to provide compensation for losses and damages sustained.

Homeowners with insurance coverage are entitled to have their properties repaired from damages caused by the recent rains and weather conditions. The Central Bank emphasised the importance of thoroughly understanding insurance policies to safeguard individual rights. In cases of complaints or disputes with insurance companies, individuals are encouraged to seek assistance from SANADAK, the financial and insurance ombudsman.