Insurance companies have condemned the new unified document for compulsory vehicle insurance as unworkable. The criticism is over a clause in the document regarding the reclaiming of damages from drivers responsible for accidents. The Saudi Arabian Monetary Agency document states that “insurance companies should pay the compensation first to the third party then reclaim their money from the driver or the insured responsible for the accident.” However, the insurance companies say that it would be practically impossible to reclaim money from any driver after a crash. Sources say “many insurance companies have now lodged formal complaints regarding the document, but SAMA has yet to respond.” However, supporters of the document claim “the criticisms are not legitimate because insurers should be responsible for paying compensation even if the driver or the insured is responsible for the accident.” They also insist the document meets the needs of citizens and insurance companies, and is much clearer than the previous governing document. Insurance companies often have to pay out as much as SR10 million in compensation and have recently increased rates by 10-25 percent in order to cover the amount of blood money which ranges between SR100,000-SR300,000. However, it has been pointed out that under the document insurance companies will have the right to reclaim their money from the driver through legal channels but only after first paying compensation to the third party. The new unified document for compulsory vehicle insurance will become effective once it has been published on the SAMA website. __
