The United Arab Emirates is gearing towards a new era of road safety as well as traffic management with the introduction of the new Federal Decree law no: (14) of 2024. This change primarily supersedes the long-lasting Federal Law No: (21) of 1995 marking an important step in the alignment of country’s traffic regulations with the modern technological innovations and the evolving transportation needs. Amidst this change in the Traffic laws, the question arises-
Are insurers ready for this change?
How will Motor insurance underwriting in UAE be affected?
Read on to explore!
What are the Changes in Old and New Traffic Laws?
As there has been a significant shift in the traffic laws from the year 1995 to 2024, the framework for regulating traffic in UAE has gone through substantial changes. Here are the key differences between the old and new laws:
Enhancement in Licensing and Regulation
The new traffic law has introduced stricter conditions for vehicle registration and driving licenses. The legal age to drive was reduced to 17 years from 18, this is to align with the international standards. Additionally, provide young drivers the early access to driving accompanied by comprehensive education and testing for ensuring road safety.
Modern Definitions and Scope
Article 1 of the new law will be broadening the legal definitions for including contemporary transportation modes like electric scooters, self-driving/autonomous vehicles, and personal mobility devices. This expansion ensures that the legal framework is robust enough to accommodate rapid technological advancements.
Strict Penalties
With the new law coming into place there is more emphasis laid on penalties for violations, especially for offenses such as hit-and-run and driving under the influence. With the zero-tolerance policy for dangerous driving behavior- it underscores the UAE’s dedication for protecting its citizens and residents.
Advanced Traffic Control Measures
The law highlights the effectiveness of integrating modern technology for better traffic management. With the utilization of electronic systems for monitoring and enforcement, the law aims in streamlining traffic flow, enhancing safety as well as significant reduction of accident rates.
Improved Risk Assessment, Accurate Risk Profiling and more…
With the new laws coming in place motor insurance underwriting will be looking at a significant change, it stresses on the insurers to refine their risk assessment models by incorporating comprehensive data on driver behavior and compliance with the traffic regulations. With the linkage of data monetization as well as insurance underwriting, companies will be able to analyze real-time driving data for developing personalized insurance premiums. This approach will allow for more accurate risk profiling as well as incentivize safer driving practices.
How iNube can be Your Friend in this Dynamic Landscape?
iNube offers a comprehensive solution that perfectly fits with the changes in UAE’s new traffic laws. With an advanced underwriting module-a part of iNube’s POLICY SUITE, the underwriters can refine risk assessment with comprehensive, accurate data and generate quotes catering to the risk value of the customer.
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