Saudi Arabia – Questions about insurers
Tuesday, 01 05 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
The concern here is about motor insurance companies. Insurance started by covering the driving license. Subsequently insurance companies decided to shift to insuring vehicles since there are citizens who have a single license but who also own several vehicles at the same time. So this shift from insuring licenses to insuring vehicles was meant to increase the revenues of insurance companies.
However, the number of insurance companies increased in the market. Therefore, they began increasing technical rates regularly. Some of these insurers earned a good reputation by settling claims related to third parties and comprehensive insurance promptly without delay. Some other companies also decreased contribution rates compared to competitors thereby attracting customers bearing in mind that this decrease followed a previous significant increase at most companies. But they also unfortunately delay payments and try not to fulfill their liabilities by exploiting some contract conditions signed with the insured, so the insured does not obtain his right unless he makes huge efforts.
Source: Okaz Newspaper