Saudi Arabia – Closure for insurers that stop motor discounts
Friday, 03 31 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
Mr. Adel Al-Issa, the official spokesperson of insurance companies toward the Saudi Arabian Monetary Authority confirmed that the insurance companies, which do not comply with the decision to grant discounts ranging between 15 to 30% in motor compulsory insurance according to the claims-free years (1 to 3 year) are threatened to be closed, indicating that the decision will be effective starting on Saturday.
Moreover, he added that the company that do not comply will have two options: they either have to stop activities or to face closure by the Monetary Authority “SAMA”. And he expects that the implementation of this decision will contribute to stability and balance noting that the system includes a second type of insurance discount for Third party compulsory insurance such as the loyalty discount of 10% when the previous contract is renewed at the same company according to the Saudi “Al Madina” newspaper.
Source: Al Arabiya