Saudi Arabia – New car owners are denied vehicle’s previous insurance
Saturday, 07 25 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
The decision issued by the Traffic department to compel car owners to renew the insurance contracts when the ownership is transferred represents a burden on vehicle owners noting that the systems allowed previously an automatic transfer of insurance with the transfer of the car ownership.
According to experts, this new decision entails the payment of a new insurance premium when the ownership is transferred even though the previous insurance contract did not expire. The price of the vehicle insurance increased to SAR (1300) when it previously did not exceed SAR (800) which indicates a seemingly arbitrary practice where the price of motor insurance increases without control.
Source: Al Madina