UAE weather: Banks, finance companies can defer loan EMIs for six months, Central Bank says

The UAE Central Bank issued a notice to all banks and insurance companies on Monday to allow the deferral of repayment of instalments of personal and car loans for a period of six months for customers affected by the recent weather conditions.

The deferral shall be without additional fees, interest or profits, or increase of the principal amount of the loan.

The Central Bank also confirmed that damages to vehicles and homes resulting from the heavy rains 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.

Read: Sheikh Hamdan orders alternative housing for affected families in Dubai, other services at no extra cost

The Central Bank further added that the same applied to homes as well. In that, 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 Central Bank had urged 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.

Record rainfall

Last week, the UAE witnessed its heaviest rainfall on record over a 24-hours period. Surpassing anything documented since the start of data collection in 1949.

According to Dr. Diana Francis, Senior Research Scientist, and Head of the Environmental and Geophysical Sciences (ENGEOS) Lab at Khalifa University, the extreme weather conditions were not caused by cloud seeding.

“The amount of rain that fell on the 16th is unprecedented and is equivalent to the amount of rain the UAE receives in two years or the amount London receives in seven months on average.”

She explained that cloud seeding did not cause or contribute to the exceptional rainfall, as the scale of the event is quite large and has impacted several countries in the region. Additionally, the event was forecasted at least five days in advance.

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