Quick answer

A deductible, commonly called an excess in UAE insurance wording, is the amount or share of an eligible claim that the insured must bear under the policy before or alongside the insurer’s payment. It is separate from the premium you pay to buy the policy. The exact excess can depend on the insurance type, policy option, driver or claim circumstances.

What does “excess” mean?

CBUAE insurance rules define excess in the health-insurance context as the amount borne by the insured from the value of payable compensation. The same basic idea appears across many general-insurance products: the customer is responsible for a stated part of an otherwise covered claim.

The policy schedule and wording determine whether the excess is a fixed AED amount, a percentage, a combination of both or subject to specific circumstances.

Deductible vs insurance premium

The premium is the price paid for the insurance cover. The deductible or excess is the customer’s share when an eligible claim occurs. Paying the premium does not mean every covered claim will be paid from the first dirham if the policy includes an excess.

Where a product offers a choice of excess, a higher voluntary excess can sometimes be associated with a lower premium, but that trade-off is product-specific and should not be assumed without checking the quotation.

Simple claim example

Assume a covered loss is assessed at AED 5,000 and a fixed AED 500 excess applies. A simplified calculation would leave AED 4,500 as the amount considered for insurer payment before applying any other policy limits, exclusions, depreciation or settlement rules.

If the covered loss were only AED 400 under the same fixed AED 500 excess, there may be no insurer payment because the loss does not exceed the customer’s share. Actual treatment depends on the policy.

Motor insurance excess in the UAE

The UAE unified motor insurance framework contains deductible rules for specified circumstances. It also allows additional deductible percentages in certain cases, such as specified young-driver, taxi, sports-car, modified-vehicle or rental-vehicle circumstances, subject to the applicable policy framework.

Do not assume the same excess applies to every driver or vehicle. Check the schedule of insurance, policy wording and any applicable unified-policy provisions.

Health insurance excess and co-payment

Health policies can use fixed or percentage-based customer contributions depending on the plan and benefit. Terms such as excess, deductible and co-payment can be used differently across products, so the policy schedule should explain what the customer pays and when.

A co-payment commonly refers to a share of a medical cost, while an excess or deductible can refer to an amount the insured bears before or as part of the claim. Use the actual policy wording rather than assuming the labels are interchangeable.

What to check before buying insurance

The standard excess or deductible for each type of claim.
Any voluntary excess you selected.
Additional excesses triggered by driver, vehicle or claim circumstances.
Whether the excess is fixed, percentage-based or both.
Whether different benefits under the same policy have different customer shares.
How the excess interacts with policy limits, exclusions and depreciation.

Frequently asked questions

Is deductible the same as excess?

They are commonly used for the same basic idea: the portion of an eligible claim borne by the insured. The exact meaning should be taken from the policy wording.

Is excess the same as insurance premium?

No. Premium is what you pay for the cover. Excess is the amount or share you bear when an eligible claim occurs.

Does every insurance policy have an excess?

No. The structure depends on the insurance product and benefit. Some policies or benefits can have no excess, while others can have several different excesses.

Can my motor-insurance excess be higher because of the driver or vehicle?

The UAE unified motor insurance framework permits additional deductible percentages in specified circumstances. Check the applicable policy and schedule for your case.

Does the insurer pay anything if the loss is below the excess?

Generally, if an otherwise covered loss does not exceed the applicable fixed excess, there may be no payment for that claim. The actual outcome depends on the policy terms.

Can choosing a higher excess lower the premium?

Some products offer that trade-off, but it is not universal. Compare the actual quotation and consider whether you could comfortably pay the higher amount after a claim.