The UAE Central Bank (CBUAE) has issued a notice to all banks and insurance companies to allow a six-month deferment of installments for personal and car loans for customers affected by the setbacks of heavy floods after record rains in the Emirates. 

"The deferral shall be without imposing additional fees, interest or profits, or otherwise increase the principal amount of the loan for the deferral of the repayment of installments," the CBUAE said in a statement.   

However, the CBUAE confirmed that the damages to vehicles and homes resulting from the heavy rains during the weather condition the country witnessed last week 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 CBUAE said. 

The Central Bank further added that the same applies to homes as well. “Owners of real estate, whether homes or buildings covered by insurance are entitled to have their property repaired from damages caused by the recent rains and weather conditions,” the statement said. 

The Central Bank advised the public to carefully read and comprehend the insurance policy to protect their insurance rights, and approach SANADAK, the financial and insurance ombudsman, if they have a complaint or dispute with the insurance company.

(Writing by Seban Scaria; editing by Daniel Luiz)