Quick Reference¶

Fast access to key formulas, rates, and business rules for general insurance products.

Premium Calculation Formulas¶

Professional Indemnity (5050)¶

Premium = Annual Revenue × Base Rate × Experience Factor × Claims Factor × Limit Factor × Territory Factor
Base Rate: 0.5% - 5.0% (by profession)
Minimum Premium: AED 2,000 - AED 10,000

Contractors All Risk (6010/6020/6030)¶

Premium = Contract Value × Base Rate × Project Type Factor × Duration Factor
Base Rate: 0.15% - 0.45%
Minimum Premium: AED 5,000 - AED 10,000

Fire Insurance (1010)¶

Premium = Sum Insured × Base Rate × Occupancy Factor × Construction Factor × Protection Discount
Base Rate: 0.05% - 0.30%
Minimum Premium: AED 500

Property All Risk (1030)¶

Premium = Sum Insured × Base Rate × Occupancy Factor × All-Risk Loading
Base Rate: 0.10% - 0.50%
Minimum Premium: AED 750

Workmen Compensation (5030)¶

Premium = Total Wages × Rate per AED 100 of Wages × Industry Factor
Rate: AED 0.50 - AED 4.00 per AED 100 wages
Minimum Premium: AED 1,000

Third Party Liability (5010)¶

Premium = Annual Turnover × Base Rate × Activity Factor × Limit Factor
Base Rate: 0.05% - 0.50%
Minimum Premium: AED 1,500

SME Package (1061)¶

Premium = Σ(Section Premium) × Package Discount
Section Rates: 0.10% - 0.40%
Minimum Premium: AED 2,500

Commission Rates¶

Product	Standard Rate	Range
Professional Indemnity	15%	10% - 20%
Contractors All Risk	12.5%	10% - 15%
Fire Insurance	10%	8% - 12%
Property All Risk	12%	10% - 15%
Workmen Compensation	8%	5% - 10%
Third Party Liability	12%	10% - 15%
SME Package	15%	12% - 18%

Short Period Refund Rates¶

Days Active	Earned %	Refund %
0-30	25%	75%
31-60	40%	60%
61-90	50%	50%
91-120	60%	40%
121-180	75%	25%
181-270	85%	15%
271-365	100%	0%

Underwriting Authority Limits¶

Sum Insured	Authority Level	Turnaround
Up to AED 500K	Branch Underwriter	Same day
AED 500K - 2M	Senior Underwriter	1-2 days
AED 2M - 5M	Chief Underwriter	2-3 days
Above AED 5M	UW Committee	3-5 days

Professional Indemnity Quick Facts¶

Base Rates by Profession¶

Medical: 1.5% - 5.0%
Legal: 0.8% - 2.5%
Accounting: 0.5% - 2.5%
Engineering: 1.0% - 2.5%
IT: 1.0% - 3.0%

Experience Factors¶

0-2 years: 1.50
3-5 years: 1.20
6-10 years: 1.00
11-20 years: 0.90
20+ years: 0.80

Claims Factors¶

No claims: 0.90
1 claim < AED 100K: 1.20
1 claim > AED 100K: 1.50
2 claims: 1.75
3+ claims: Decline

Limit Factors¶

AED 500K: 1.00
AED 1M: 1.50
AED 2M: 1.80
AED 5M: 2.50
AED 10M: 3.50

Fire Insurance Quick Facts¶

Occupancy Factors¶

Residential: 0.80
Office: 1.00
Retail: 1.20
Warehouse: 1.40
Industrial: 1.50 - 2.00

Construction Factors¶

RCC (Concrete): 1.00
Brick/Block: 1.25
Mixed: 1.50
Wood/Tin: 1.75 - 2.00

Protection Discounts¶

Sprinkler System: -15%
Fire Alarm: -10%
Hydrants Nearby: -5%
Security Guards: -5%

Contractors All Risk Quick Facts¶

Project Type Factors¶

Residential: 1.0
Commercial: 1.2
Industrial: 1.5
Infrastructure: 1.8

Duration Factors¶

Up to 12 months: 1.0
13-24 months: 1.1
25-36 months: 1.2

Standard Covers¶

Material Damage
Third Party Liability
Machinery Breakdown
Debris Removal

Workmen Compensation Quick Facts¶

Wage-Based Rates (per AED 100)¶

Office Staff: AED 0.50
Retail: AED 1.00
Light Industry: AED 2.00
Heavy Industry: AED 3.00
Construction: AED 4.00

Statutory Benefits¶

Death: AED 200,000
Permanent Disability: Based on degree
Temporary Disability: Daily allowance
Medical Expenses: Actual

Key Business Rules¶

Rule 1: Minimum Premium¶

Final Premium = MAX(Calculated Premium, Minimum Premium)

Rule 2: Maximum Discount¶

Total Discounts ≤ 35% of Base Premium

Rule 3: Commission Calculation¶

Commission = Net Premium × Commission Rate
Net Premium = Gross Premium - Levies/Taxes

Rule 4: Cancellation Refund¶

Refund = Premium × Short Period Rate
Commission Refund = Commission × Short Period Rate

Rule 5: Endorsement Premium¶

Additional Premium = Change Amount × Rate × (Days Remaining ÷ 365) × Factors

Common Calculations¶

Pro-Rata Premium¶

Pro-Rata Premium = Annual Premium × (Days ÷ 365)

Premium Including VAT¶

Total Premium = Net Premium × 1.05
(UAE VAT = 5%)

Limit Factor Interpolation¶

For limits between table values:
Factor = Lower Factor + ((Limit - Lower Limit) ÷ (Upper Limit - Lower Limit)) × (Upper Factor - Lower Factor)

Document Checklist¶

For Quote¶

[ ] Trade License
[ ] Professional License (if applicable)
[ ] Business Profile

For Policy Issuance¶

[ ] Completed Proposal Form
[ ] Trade License (certified)
[ ] Professional License (certified)
[ ] Financial Statements (last 2 years)
[ ] Claims History Declaration
[ ] Building/Property Details (property insurance)
[ ] Wage Register (WC)
[ ] Contract Documents (CAR)

For Claims¶

[ ] Claim Notification Form
[ ] Police Report (if applicable)
[ ] Supporting Documents
[ ] Photos/Videos
[ ] Repair Estimates

Contact Information¶

Underwriting Queries: - Email: underwriting@methaq.ae - Phone: +971 4 XXX XXXX

Claims: - Email: claims@methaq.ae - 24/7 Hotline: 800-CLAIMS

Broker Support: - Email: broker.support@methaq.ae - Phone: +971 4 XXX XXXX

Business Hours: Sunday - Thursday: 9:00 AM - 6:00 PM GST

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Last Updated: October 2025 Version: 1.0