Road transport pumping 300 million riyals annually in the insurance market
Saturday, 08 22 2015, Category: Insurance and Reinsurance, Country: Saudi Arabia
According to investors in the road transport sector in the Kingdom of Saudi Arabia, the amount being pumped annually by the transport sector into the insurance market is almost 300 million riyals; which is the insurance value for covering the 150 thousand trucks on the road, 60% of which are concentrated in the eastern region.
As per them, the transport sector represents the backbone of the Saudi economy, arguing that raising insurance rates recently will no doubt rise transport prices in the near term, according to the newspaper "Today".
The head of the National Committee for Land Transport Council of Saudi Chambers, Bander Al-Jabri, said that the transport sector fleet in Saudi Arabia includes 150 thousand trucks other than medium and light transport, criticizing the decision to increase the insurance rates for " third party liability"; which leads to increased costs on the land transport companies and thus impacts the local consumer.
Ahmed Al Mokbel, a member of the National Committee for Land Transport, explained the different types of insurance policies being traded among investors, which are comprehensive insurance and third party liability; pointing out that insurance rates for trucks rose in the same year more than once; which led to the fluctuation of transport’s prices.