Al Nassr secures 5-1 victory over Al Ain to edge closer to knockout stage    Saudi Deputy FM meets Lt. Gen. Al-Burhan of Sudan    Al-Khateeb: Saudi Arabia is the largest global investor in tourism sector "Saudi Land" pavilion inaugurated at World Travel Market in London    Saudi Crown Prince, Japanese PM discuss over phone efforts made to achieve peace in the region    Saudi Arabia, in its drive to enrich Arab culture, launches Arab Week at UNESCO in Paris    Neymar exits Al Hilal match with muscle injury, leaving fans disappointed    AlHisn Big Time Studios unveiled to transform film and TV production in Riyadh    Saudi Arabia approves cooperation agreement with US for the use of outer space for peaceful purposes    Quality of Life Program CEO highlights Saudi urban transformations at UN-Habitat conference in Cairo    Almarai wins 'Best Corporate Sukuk' at Asset Triple A Islamic Finance Awards    Top climber falls to death after rare Himalayan feat    US voters flying home in time for election    Drones and snipers on standby to protect Arizona vote-counters    India's Modi condemns violence after Canada temple incident    Elon Musk can keep giving $1m to voters, judge rules    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Quincy Jones, titan of US music, dies aged 91    Hidden sugars in Asia's baby food spark concerns    HONOR unveils pre-order of the stunning HONOR MagicBook Art 14 Featuring an ultra-slim design, HONOR Eye Comfort Display and AI Cross-OS WorkStation    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Insurance companies continue to raise prices
Published in The Saudi Gazette on 27 - 03 - 2015


Saudi Gazette report
RIYADH – Vehicle insurance has become an essential and indispensible matter. Many owners of vehicles continue to suffer because insurance companies refuse to comply with the conditions mentioned in the policy when a traffic accident occurs. In such a situation, insurance companies often delay payment disbursements for damages sustained to insured vehicles. When this happens, car owners are left with no other option but to rent a car and wait for the insurance company to come through with the repairs. This often means that owners have to pay, out of pocket, for the rental vehicle for weeks and sometimes even months. Unfortunately, the majority of drivers are unaware of the conditions of an insurance policy and they just sign the policy without carefully reading the conditions therein.
Insurance fees
Ibrahim Al-Ruwais, a Saudi Electricity Company official, said insurance companies in the Kingdom do not differentiate between those who have frequent accidents in a single calendar year and those who do not have any accidents.
“Insurance fees are increased without any justifications. In my opinion, an insurance company should only raise the insurance costs if the insured driver's record shows a high frequency of road accidents. The same is true when it comes to the long period a company spends before paying for the damages. There should be some differentiation here as well because you can't treat someone who has an accident for the first time the same as someone who has had several accidents in a given year,” Al-Ruwais said.
Abdullah Sharahili, a government official, spoke about the suffering of people who have bought their vehicles on rent-to-own contracts. “If I have an accident, I have to go through endless measures in order to get approval from the company. I have no other option but to rent a car to get by until the insurance company has paid for the repair costs,” Sharahili said.
Reinsurance
Ibrahim Al-Ghafili, a government official, said the problem with insurance companies in the Kingdom is that they offer the same products and services. Most insurance companies rely on the reinsurance market and they do not have products that meet the needs of all customers.
“Insurance companies should develop the concept of the cooperative system of reimbursement of repayment. All companies focus on one segment of the market – insurance for individuals, whether such insurance is medical or for vehicles. They have overlooked important segments of the market because they don't employ enough staff and they don't have the right tools to penetrate the market and each other's customers,” he explained.
The market will eventually put two options on the tables for most companies: shape up or ship out. When this happens, companies with poor performance records will not be able to adjust and pull through the problems even if they raise the prices of insurance policies. Even if they inject funds into the market, they will find it hard to pull through and will be left with no other option but to merge with other companies to mitigate the loss impact.
Lack of awareness
Ahmad Moafa, educational supervisor in Asir, said most people do not have in-depth knowledge of insurance policies and this is the reason behind the problems that happen to the insured and the insurance companies. While the latter make sure they guarantee their full rights, they do not explain to the insured the conditions of the insurance policy. The insured finds himself signing documents he does not understand; he only realizes the obligations and responsibilities contained in the documents when he has a car accident. “The media should organize campaigns to raise public awareness about insurance and its importance and what it involves,” he said.
Monitoring system
Ahmad Hadad, a government official, called for monitoring the performance and activities of insurance companies, the number of which has exceeded 60. There should be a system in place to ensure the companies comply with pertinent insurance regulations and rules.
“Insurance involves so many procedures such as estimation of repairs, evaluation of damage, etc. Keeping a close eye on the activities of these companies is important for eradicating all negative practices in the market,” he said.


Clic here to read the story from its source.