UAE – Insurers pay auto repair garages in installments
Tuesday, 10 16 2018, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies delay payments to auto repair garages and car agencies by different periods exceeding 6 months in some cases. For this reason, some auto repair garages decided to suspend their business with insurers that do not honor their payments in order to avoid problems with the suppliers of spare parts.
Officials said that this delay in payment is due to a shortage in liquidity. However, they confirmed that this does not mean that there is a liquidity or solvency problem.
Moreover, the secretary general of the Emirates Insurance Association, Mr. Fareed Lutfi said that this payment delay is a phenomenon indicating that it is related to small insurers that do not have enough liquidity.
Source: Al Roeya - UAE