Crisis Mode: Day 21

War exclusion clauses: what your UAE insurer covers, and what it doesn't

Yesterday's brief promised this. Here it is.

Almost every UAE insurance policy carries a war exclusion clause. The standard language excludes damage arising from "war, invasion, acts of foreign enemies, hostilities, civil war, rebellion, revolution, insurrection, or acts of military power." That clause covers home contents, motor, and travel policies. It is not new. Most policyholders have simply never had reason to read it until now.

The UAE Insurance Authority (IA) oversees all licensed insurers operating in the UAE. As of this brief, the IA has not issued a directive requiring insurers to waive war exclusions or process conflict-related claims as a matter of policy. What has emerged is variation between companies. Some insurers are distinguishing between direct war damage (blast, projectile, interception debris) and consequential damage (power surges, broken windows from shockwaves, burst pipes). Others are applying the war exclusion broadly to any event connected to the conflict period. The National has reported this inconsistency across multiple UAE insurers.

Travel insurance is the clearest case. Standard travel policies explicitly exclude "acts of war" from cancellation cover. If your flight was cancelled because of the conflict, the airline's rebooking policy is your primary recourse, not your travel insurer. One exception worth checking: trips booked before February 28 may have stronger grounds for a claim, particularly under policies that require the conflict to be "unforeseeable" at the time of booking.

Home and motor cover are more complex. Home contents war exclusions are near-universal in UAE policy terms, per Gulf News insurance coverage. Some insurers are distinguishing consequential damage from war damage on a case-by-case basis. Motor: if your vehicle was damaged during an interception event, your comprehensive policy's war exclusion almost certainly applies. Third-party cover is unaffected. Buildings insurance in tenanted properties is the landlord's responsibility, not the tenant's. April renewals are already arriving. Some insurers are including conflict-specific addenda in renewal documentation. Some are raising premiums. Read before you sign.

1  Eid Al Fitr Day 1: what's open, what's closed, when work resumes

The federal public holiday runs March 19-22. Both public and private sector employees return to work Monday March 23. Dubai schools also resume March 23, but remain on remote learning — KHDA has confirmed in-person classes are not yet reinstated. Eid prayers have been moved indoors this year. No open-air prayer ground congregations, per UAE Islamic Affairs and Charitable Activities Department guidance. Abu Dhabi is suspending Darb road tolls and Q Mobility parking charges for the full four-day holiday period. Sharjah is offering free public parking for the first three days, excluding smart and special zones. Government services are closed through March 22. Supermarkets, pharmacies, and hospitals are operating with adjusted hours. Eid Mubarak. (Sources: The National, Gulf News, FAHR, Abu Dhabi Mobility)

2  Flights: Emirates targeting recovery, Lufthansa group suspended through March 28

Dubai International Airport is open. Emirates is operating a reduced schedule and targeting full capacity recovery; the airline recorded a 5.3% cancellation rate as of March 18. Free rebooking applies to tickets issued before February 28, up to nine times, through April 30, for travel through May 31. British Airways has cancelled all Dubai flights through May 31. The Lufthansa group, covering Lufthansa, SWISS, Austrian Airlines, and Eurowings, remains suspended through at least March 28. Air France was suspended through March 20; check the airline's own site for resumption status. United Airlines is suspended through April 19. City check-in locations at Dubai Airport remain temporarily closed; airport check-in only. (Sources: Euronews, Time Out Dubai, airline statements)

3  Strait of Hormuz: 21 ships in 21 days, and what it means for April fuel prices

UKMTO (United Kingdom Maritime Trade Operations) reports that 21 merchant vessels have transited the Strait of Hormuz since February 28. Normal volume is more than 100 per day. Over 150 ships are anchored outside the strait, per Bloomberg maritime tracking. Fujairah, one of the world's largest crude oil storage hubs and a key UAE fuel supply node, has reported disruptions, with Al Jazeera and CNBC documenting fire at the Fujairah Oil Industry Zone. Brent crude peaked at $126 per barrel earlier in March, described by analysts as the largest supply disruption since the 1970s. Prices have since eased but remain above $100. UAE fuel prices are regulated and announced monthly by ENOC and ADNOC; the next adjustment is due in early April. (Sources: UKMTO Advisory Note 16, Bloomberg, CNBC, Al Jazeera)

Day 21. Eid begins and the war continues. Your insurer is quietly waiting to see whether you ask the right questions before your April renewal arrives. Most policyholders won't read the clause. You now know what to ask, and you know to ask it in writing.

Tomorrow: consumer prices. Which grocery categories are showing the first Hormuz-rerouting increases, what the shipping data suggests about weeks four through six, and how to read your April supermarket bill against March.

SOURCES

UAE Insurance Authority · Standard UAE insurance policy terms · The National · Gulf News · UKMTO Advisory Note 16 · Bloomberg · CNBC · Al Jazeera · UAE Islamic Affairs and Charitable Activities Department · FAHR · Abu Dhabi Mobility · Euronews · Time Out Dubai · Emirates · British Airways · Lufthansa Group · KHDA