Compulsory auto liability insurance, often referred to as Third-Party Liability (TPL), is designed to protect individuals and property injured or damaged by the insured driver. This form of insurance is mandatory in all, or nearly all, Middle Eastern countries. However, there are differences across jurisdictions regarding what the compulsory policy must cover, the minimum regulatory limits, and the standardized policy terms.
Across the majority of countries in the Middle East, compulsory auto liability insurance provides coverage for death or bodily injury to third parties, as well as third-party property damage (PD). However, the scope, policy limits, and regulatory treatment vary from country to country.
Country-by-Country Comparison
| Country | Mandatory | Bodily Injury / Death (BI) | Property Damage (PD) |
| UAE | Yes | Effectively unlimited; subject to court awards. Policy wording states liability for third-party death or bodily injury. | Limits are set in the unified policy wording. In practice, insurers publish limits typically ranging from AED 2,000,000 to AED 3,500,000 per accident. |
| Qatar | Yes | Coverage provided for third-party injury or death. Claims settled per law and policy. | PD is included; limits vary based on unified policy wording. The PD limit is defined in the TPL wording by insurer or regulator. |
| Saudi Arabia (KSA) | Yes | BI is covered under SAMA’s unified policy. Liability to third parties is subject to judicial awards or limits defined in the unified wording. | PD is covered under standardized TPL policy. Specific caps are outlined in the policy or appendices and must meet SAMA minimums. |
| Oman | Yes | BI is covered as compulsory under FSA rules and policy wording. | PD is included under TPL; limits are defined in unified TPL wording. Practical limits vary by insurer. |
| Bahrain | Yes | BI (death or bodily injury) is effectively unlimited, subject to court awards. Policy wording reflects no low fixed cap. | PD is typically capped as per unified wording. Example: BHD 500,000 per accident based on insurer policy documents. |
| Kuwait | Yes | BI liability is the sum awarded by the court or determined by law. | PD is covered under TPL. Limits depend on unified policy wording and regulatory guidance. |
| Lebanon | Yes | Lebanese law specifies the BI Limit. | PD limits are commonly offered between USD 250,000 and 1,000,000 in local market policies. Final limits vary by insurer. |
| Iraq | Yes | BI is mandated by law. Compensation handled under statutory/state frameworks; limits set by law or court awards. | PD coverage exists but has historically focused on BI. PD caps are specified in policy/legal frameworks and may vary. |
| Egypt | Yes | BI is covered under the compulsory TPL scheme. Recent Unified Insurance Law mandates TPL for bodily injury. | PD is included, though coverage limits may be modest. Example: EGP 10,000 shown in a sample insurer product. Limits vary by insurer and regulator guidance. |
| Jordan | Yes | Bodily Injury or Death up to JOD 17,000 per person. | PD coverage has historically not been mandatory under earlier frameworks. Depending on the current unified schedule, PD may be optional or included. |
At Associated Alliance Incorporated, we can provide valuable support to clients by offering expert guidance on selecting the most suitable policy based on the client’s specific needs. We compare offerings from various insurers to ensure competitive pricing and coverage that meets the legal requirements in every country of operations. Additionally, we can assist in explaining policy terms, handling documentation, and facilitating a smooth claims process in the event of an accident, ensuring the client is well-informed and protected throughout the policy period.
As insurance consultants too, we consistently advise clients not to rely solely on the minimum TPL coverage for full protection. Here’s why:
- No Protection for Your Own Vehicle or Injuries
TPL only covers third parties. If you’re at fault in an accident, your own vehicle’s repairs, your personal injuries, or the loss of your car are not covered under TPL. - Insufficient Coverage Limits
Compensation amounts can exceed the policy’s stated limits. In such cases, the excess liability becomes the personal responsibility of the insured, which can lead to significant financial exposure. - No Coverage for Additional Risks
TPL does not protect against natural disasters, fire, theft, vandalism, or other non-collision-related losses. For these, comprehensive coverage is essential.
While compulsory TPL insurance ensures basic legal compliance and provides protection to third parties, it should not be seen as comprehensive coverage. Policyholders are strongly advised to understand their national regulations and consider additional coverage options to ensure optimal protection.
