UAE Central Bank allows loan repayment relief

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The UAE Central Bank (CBUAE) has issued a notice to all banks and insurance companies to allow the deferral of repayment of personal and car loan instalments for customers affected by the repercussions of the recent weather conditions.

The deferral shall be for a period of six months without imposing additional fees, interest or profits, or otherwise increase the principal amount of the loan.

CBUAE also confirmed that the damages to vehicles and homes resulting from the recent heavy rains are covered by insurance if there is an insurance policy against loss and damage or what is normally referred to as 'comprehensive insurance'.

The insurance companies shall be considered responsible for indemnification.

The Central Bank added that the same applies to homes as well - owners of real state, whether homes or buildings, covered by insurance are entitled to have their property repaired from damages caused by the recent rains and weather conditions.

It has urged the public to carefully read and comprehend the insurance policy to protect their rights and approach SANADAK, the financial and insurance ombudsman, in case of a complaint or dispute with the insurance company.

 

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