Saudi Arabia – The absence of regulation caused the motor insurance price increases
Tuesday, 06 09 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
The Saudi Arabian Monetary Agency is considered to be the regulator and supervisor of financial institutions which are allowed to operate in the Kingdom, and which include “insurance companies”, so since the issuance of the basic law governing the Agency and the banking regulations which aim to protect the interests of the customers. Additionally, financial institutions have to deal with customers professionally and fairly.
Although the customers’ protection principles issued by Saudi Arabian Monetary Agency state that insurance companies have to apply the pricing methodology filed with the agency, the insurance companies have not complied with it and are abusing the citizens by increasing insurance prices by (100%) taking advantage of the absence of the regulator.
Citizens and employees of car exhibitions also complained about the obligation to renew the motor insurance contract whenever ownership is transferred to another person. Until recently insurance used to be transferred automatically until expiry with the ownership of the car, but now the new owner has to secure a new insurance contract for his car!
Source: Al Riyadh