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UAE Banks Offer Potential 6-Month Loan Instalment Deferral in Wake of Storm, Confirms Central Bank

UAE has confirmed that The Central Bank of the UAE are offering the possibility of deferring loan instalments for up to six months following the recent storm

Last week, the UAE experienced the most substantial rainfall it has seen in 75 years, prompting the Central Bank of the UAE (CBUAE) to take swift action. Today, the CBUAE issued a directive to all banks and insurance companies, mandating the provision of a six-month deferral option for the repayment of personal and car loan instalments to customers impacted by the adverse weather conditions.

Crucially, this deferral comes without the imposition of additional fees, interest, or profit charges, ensuring that borrowers are not burdened with extra financial strain during this challenging period. The CBUAE’s proactive measure aims to alleviate the immediate financial pressures faced by affected individuals and families, providing them with breathing room to navigate through the aftermath of the storm.

Furthermore, the CBUAE has affirmed that damages incurred to vehicles and homes as a result of the heavy rains are covered by insurance policies, specifically comprehensive insurance plans. This means that insurance companies are obligated to compensate policyholders for losses and damages sustained during the inclement weather.

This assurance extends to both vehicles and properties, ensuring that owners of real estate, including homes and buildings, have the necessary coverage to repair damages caused by the recent weather conditions. By clarifying these insurance provisions, the CBUAE aims to empower individuals to assert their insurance rights and seek appropriate recourse for any damages incurred.

To safeguard their insurance entitlements, the CBUAE urges the public to carefully review and understand the terms and conditions of their insurance policies. In the event of any disputes or grievances with insurance companies, individuals are encouraged to seek assistance from SANADAK, the financial and insurance ombudsman, to resolve their concerns effectively and fairly.

By proactively addressing the financial and insurance implications of the recent weather events, the CBUAE demonstrates its commitment to supporting the resilience and well-being of individuals and communities across the UAE. Through collaborative efforts between regulatory authorities, financial institutions, and insurance providers, affected individuals can access the necessary support and resources to recover and rebuild in the aftermath of the storm.

In the wake of unprecedented rainfall, the UAE’s Central Bank has emerged as a beacon of support for those grappling with the aftermath of the historic storm. With the country witnessing its heaviest rains in 75 years, the Central Bank swiftly issued a directive to banks and insurance companies, mandating a six-month deferral option for loan repayments.

This proactive measure reflects the Central Bank’s commitment to alleviating the financial strain faced by individuals and families affected by the adverse weather conditions. By allowing borrowers to defer loan instalments without incurring additional fees or interest charges, the Central Bank aims to provide much-needed relief during this challenging period.

Moreover, the Central Bank has clarified that damages to vehicles and homes caused by the heavy rains are covered by comprehensive insurance policies. This assurance underscores the importance of insurance coverage in safeguarding individuals against unforeseen events and ensuring prompt compensation for losses incurred.

For homeowners and property owners, the Central Bank’s affirmation of insurance coverage offers reassurance and a pathway to recovery. By emphasizing the importance of understanding insurance policies and asserting one’s rights, the Central Bank empowers individuals to navigate the claims process effectively and seek fair compensation for damages.

Additionally, the Central Bank’s call to approach SANADAK, the financial and insurance ombudsman, in case of disputes with insurance companies further strengthens consumer protection measures. By providing a channel for grievances to be addressed impartially, SANADAK plays a crucial role in upholding the rights of policyholders and ensuring accountability within the insurance industry.

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