Electric cars to get region's first insurance policy

05 February 2017

Policy to initially cover Tesla cars only

A subsidiary of France’s AXA Insurance has launched the first insurance product covering Tesla electric vehicles in the GCC region.

The insurance plan will include:

  • own damage cover
  • third party bodily injuries
  • third party property damage AED3.5m ($950,000)
  • natural perils cover
  • Oman extension cover (for comprehensive policies)
  • free roadside assistance

Tesla car owners can purchase the insurance policy effective 5 February, according to an AXA spokesperson.

The price of the policy will be within the maximum rates imposed by the Insurance Authority of 5 per cent of the car value for sedan-type cars.

List price for Tesla cars start at $71,200, with higher models costing as much as $131,000.

AXA said it expects to expand coverage to include electric vehicles by other manufacturers in future. The timeline for the availability of policy, however, will depend on the repair “management agreement with the dealer.”

AXA’s new insurance product supports Dubai’s objective to have 10 per cent of new vehicle purchases by 2021 to be accounted for by electric or hybrid vehicles.

The Dubai Supreme Council of Energy has said it aims to reduce carbon emissions by 16 per cent by 2021. The DSCE along with the Dubai Electricity and Water Authority (Dewa) and the Roads and Transport Authority (RTA) had also agreed to increase green mobility usage to reduce overall carbon emissions in the emirate.

The latest available official figure puts the number of vehicles in Dubai at 1.4 million in 2014.

In 2015, full year car sales in the UAE was expected to reach 420,000 units.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications