Saudi Arabia – 40% effect of fraud on insurance prices
Monday, 04 24 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
The replacement of the uninsured driver who caused the accident by another driver who is insured can cause motor insurance prices to increase by 40% according to Mr. Abdulaziz Abu Al-Saud, vice-chairman of the National Insurance Committee who made statements to “Al Watan Newspaper”. He clarified that this practice is a form of fraud committed by uninsured persons or drivers who do not have a license when they cause traffic accidents.
Furthermore, Mr. Abu Al-Saud also clarified that the Saudi Arabian Monetary Authority imposed discounts on insurers for drivers who have a clean driving record and who did not cause any accident. He also confirmed that the person who did cause accidents will not obtain this discount, which can reach 30% for the whole insurance period.
Source: Al-Watan Online