Third party vehicle insurance has gone up by a staggering 90 percent, largely due to the increase in blood money payments from SR100,000 to SR300,000. Insurance companies have now increased the cover for their policy holders from SR5 million to SR10 million, it was reported in an Arabic newspaper on Wednesday. This covers accidents and damage caused by natural disasters such as floods, hail, fire and break-ins. Insurance premiums are based on the model of a car, manufacturing date, current market price and condition when an accident takes place. The premiums include an additional SR60 for the driver and SR50 for each passenger, who are all eligible for blood money if they are killed by a policy holder's car. The second car is usually covered by the insurance policy provided it is replaced with a hired car until repairs are completed. Some companies charge SR370 for third party insurance representing 3.5 percent of the total value of the car. The insurance companies only cover models of 2008 and over. Majed Fahaid Al-Amri said insurance has become “a pressing need” since the renewal of car licenses is linked to it. Third party insurance relieves owners and drivers from the responsibility of covering financial costs resulting from traffic accidents. Mazen Al-Sharif said comprehensive insurance is very useful if a motorist makes an accident. The insurance company compensates the third party for injury or death and repairs the two cars if the insurance policy holder is held responsible for the accident. He said the rise in insurance premiums cannot be justified and added that some insurance companies have increased their premiums to “unbelievable levels”. Colonel Zaid Al-Hamzi, spokesman of Jeddah Traffic Police, said they are not involved in the process if the parties involved in an accident have insurance cover.
