Motor Vehicle Insurance - JCCI proposal

Vehicle /Car/Motor Insurance - 7th July,

The new vehicle insurance regulations proposed by the JCCI, is worth considering. The proposal is customer friendly.  A large number of claims fall under SR. 5,000 limit. The Motor department personnel of the Insurance companies spend considerable time in handling these smaller claims. This implementation will save the time of Insurance companies, the client and other parties involved.  The client will have lesser hassles in fixing his car and his visits to the Insurance Company will be saved.  

Regarding total loss settlement of the claims the percentage system my give rise to disputes unless a prior evaluation is done, which may be quite difficult for each and every vehicle to be insured.  The freedom to have self repair facility will give scope for fraud. Insurance Companies should take this as an opportunity and devise   proper procedural booklet in-order to plug the holes leading to fraud and help the customer in assisting him in recovering his loss as per the policy terms.  

Mohammed Sadullah Khan. 

Riyadh

Booming Insurance Industry  - Mandatory Medical and Motor Insurance

The spurt in GCC insurance premiums reaching $10.6bn in 2009 is heartening to the Insurance Industry.  Many Insurance players are changing their goal posts and re-aligning themselves.  The greater share of the GCC market comes from Saudi Arabia which corners more than 25% of the total GCC markets.  

In recent years the main growth areas of insurance have been Motor and Medical/Health.   Compared to developed countries, GCC still has a long way to go.   The involvement of Banks directly or indirectly has also helped in market penetration and will continue to play an important role. Motor Insurance also known as Car Insurance and Vehicles Insurance is one of the Mandatory Insurance.  

The mandatory Insurance is for Third Party or Liability Insurance only.  Mandatory Insurance has already made the general public approach the Insurers, the Insurance Industry should take advantage of this and devise ways and means to make their proposition more attractive and products competitive and digestible.    

Mohammed Sadullah Khan

Riyadh