UAE - Drivers of "clean records" deprived of price cuts
Monday, 09 16 2019, Category: Insurance and Reinsurance, Country: U.A.E
The competition between companies for car insurance prices has reflected negatively on rewarding committed drivers with clean traffic records and giving them discounts, compared to drivers who cause accidents, pointing out that part of the companies reduced the prices of documents and gives low prices, Consider the driver's record and the claims it caused.
They explained to Emirates Today that insurance companies can, in accordance with the instructions of the Insurance Authority, grant discounts on the price of documents at a varying rate based on the driver's traffic record, taking into account the number of years they caused in traffic accidents or claims, pointing out that some companies apply this mechanism On various categories of drivers under price competition for insurance policies.
Adnan Elias, Sales Manager at Fidelity Insurance Services, said, “The prices provided by some insurance companies operating in the local market, in the recent period, have contributed to the intensification of price competition in the market for car insurance rates.” He pointed out that « "Some companies are cutting prices without any other consideration, in the context of acquiring the largest market share possible in this sector."
Elias added that «part of the insurance companies (exploits) the instructions of the Authority regarding the granting of discounts to the owners of clean traffic records, where they are taking them as a basis to reduce prices, regardless of the record of the driver of traffic, and whether he is committed or not», pointing out that «under these "Competition in the market, all drivers are treated the same way."
Source: Teller Report