Electric vehicles face technical challenges that affect insurance pricing

The Minister of State for Financial Affairs, Mohammed bin Hadi Al -Husseini, stressed that the United Arab Emirates Central Bank oversees the pricing of insurance documents through a unified document for vehicle insurance, including setting a minimum limit and maximum prices, unifying coverage, and monitoring pricing practices to enhance transparency and prevent exploitation, indicating that companies can apply a discount of up to 25% of the minimum prices for electric vehicles or natural gas vehicles Consider the accident record.

He said in a book response, during the Federal National Council session today, to a question directed by the council member Dr. Adnan Hamad Al Hammadi, about “organizing vehicle insurance prices and providing solutions to electric vehicles”: “electric vehicles face technical challenges that affect the pricing of insurance, the most prominent of which are: the high costs of repair, the scarcity of spare parts, the lack of service centers, the increase in accidents related to accidents, as well as a lack of long -term data about Its performance.

He pointed to the impact of the delay in the global supply chains on the speed and costs of maintenance, stressing that the primary goal is to ensure fair and sustainable coverage for all the insured, while maintaining the technical and financial balance of the insurance sector, and supporting the transformation options for clean energy.