MAKKAH – Insurance experts expect the new regulations adopted by the Traffic Department in which fines are placed on uninsured vehicles to increase the revenue of insurance companies by 20 percent. On the other hand, owners of car repair workshops expect their revenue to decrease by 30 percent because of the new regulations. The Traffic Department has started imposing a fine of SR100 on any uninsured vehicle. This step has forced many drivers to buy vehicle insurance. Taking advantage of the situation, the companies have increased their insurance premiums by 20 percent. Adnan Khoja is the insurance adviser at Al-Mamoon Company and former member of the insurance committee at the Jeddah Chamber of Commerce and Industry. He hailed the move by the traffic police that required all drivers to have their vehicles insured. “This is a good thing that will save drivers who get into an accident from being arrested because the insurance company will take care of the costs.”
Khoja also said insurance companies will bear the brunt of the repair costs while the driver will have to pay a small amount or percentage depending on the insurance policy conditions. Makkah Traffic Department spokesman Lt. Col. Fawzi Al-Ansari said police are keen to ensure that all vehicles are insured against accidents. He noted that the majority of drivers do not recognize the importance of having their vehicles insured and called on the media to do more to raise awareness. Bandar Al-Huthali who owns several car repair workshops noted that the number of drivers who bring their damaged vehicles to workshops has decreased because they have insurance now. “They prefer to go to car dealers and have their vehicles fixed there while insurance companies will foot the repair bill,” he said. “Many workshops try to attract customers by offering quick repair services faster than car dealers and at a cheaper price,” Al-Huthali said, adding that many workshop owners are trying to sign agreements with car dealers to help repair customers' vehicles. Some workshops are also trying to sign agreements with car rental companies to repair their cars, he said.
