The committee of road transportation of the Jeddah Chamber of Commerce and Industry (JCCI) met here on Wednesday with representatives of the Kingdom's auto insurance companies to discuss a reduction in auto insurance rates and the possibility of adopting a flat rate for the insurance of vehicles. The committee also stressed that there should be a standard contract for all insurance firms issued by the Saudi Arabian Monetary Agency so that it would be possible to deal equitably with all parts of the Saudi transportation sector. Saeed Bin Ali Al-Basami, vice president of the national road transportation committee and president of the JCCI committee for road transportation, discussed the need for a flat rate of insurance for all types of vehicles. Transport, and particularly road transport, is an important national sector, with passenger and cargo insurance on both an international and domestic level playing a leading role in the economy and offering investment opportunities. “The insurance market is estimated to be worth more than SR67 billion,” he said. “There is a need for car insurance companies to fix a reasonable rate of insurance, and the contract between two parties should be very clear and according to SAMA regulations,” he added. He hoped that the meeting would be beneficial to workers in the Kingdom in general and to the nation's transport sector in particular. He emphasized the importance of the road transport sector in the rehabilitation of trade and development, considering that it is one of the largest transport sectors in the Arab region, adding that meetings with insurance companies will continue in order to settle upon a standard insurance rate, which will satisfy both parties.
