Saudi Arabia – 90% not covered against natural perils
Friday, 11 20 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
The economic consultant in the insurance field Dr. Adham Jad estimated the total percentage of vehicles not even covered against “hail” to be approximately 90%, adding: there are around 10% of car owners have comprehensive insurance which covers natural perils and it is considered as the only kind of insurance which covers the damages resulting from heavy rains.
He added: There are numerous car owners who choose the other two kinds of insurance which provide coverage for third parties and do not cover the damages resulting from rain, the second being comprehensive insurance which does not cover natural factors such as floods and heavy rain.
He identified the high material cost as the main reason that diverts car owners away from purchasing natural peril coverage, where the price of comprehensive insurance reaches 5% of the value of the insured car because the coverage is large and covers the vehicle and other affected parties.
Source: Okaz Newspaper