Mohammed bin Hadi Al Hussaini, Minister of State for Financial Affairs, reported that the Central Bank of the United Arab Emirates oversees the pricing of insurance policies through a unified document for vehicle insurance.

This includes establishing minimum and maximum price limits, standardizing coverage, and monitoring pricing practices to enhance transparency and prevent exploitation.

Companies may apply discounts of up to 25% off the minimum price for electric or natural gas-powered vehicles, considering their accident records.

In a written response during the Federal National Council session, Al Hussaini addressed a query from council member Dr. Adnan Hamad Al Hammadi regarding the regulation of vehicle insurance prices and solutions for electric vehicles.

He indicated that electric vehicles encounter technical challenges that affect insurance pricing, primarily including high repair costs, scarcity of spare parts, a lack of service centers, an increase in claims related to accidents, and insufficient long-term performance data.

Al Hussaini noted the impact of global supply chain delays on maintenance speed and costs.

He emphasized that the main objective is to ensure fair and sustainable coverage for all policyholders while maintaining the technical and financial balance of the insurance sector.

He also highlighted the importance of supporting the transition to clean energy options.