Dubai Municipality abolishes insurance for approving building plans

This is based on the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai on easing the burden on customers, streamlining the procedures and overcoming obstacles.

Lootah said that the Municipality has, through this decision, tried to reduce the efforts exerted for the process of payment and receipt of insurance so as to save the time and effort of the customers.

He said:

"At the same time it will also save the financial burden on the customer and facilitate the procedures in light of the current situation. This move is part of the Municipality's keenness on achieving customer satisfaction and simplifying procedures."

As per the clauses of the decision the insurance on transactions regarding the approval of plans imposed on the owners when they submit applications for building permits has been cancelled. It was a fee submitted along with the building plans, which was acknowledged by the competent department to issue a building permit. The owner receives the difference between the acknowledged fee and the estimated fee which must be met in the light of the accounts to the area of the building during the final approval of the plans.

In the previous decision the owner had to pay an insurance amount called insurance on transaction related to plan approval, which was equal to the set of fees that must be met for the issuance of building permit.