RIYADH: Saudi insurance companies have announced plans to start new pricing procedures that provide a discount to policyholders who have no prior claims.
In accordance with SAMA instructions, insurance companies were requested to provide a no-claim policyholder with a discount when pricing mandatory individual motor insurance policies, provided that such a discount is applied to the base rate.
The new pricing regulations became effective on Saturday.
Adel Al-Eisa, official spokesman for insurance companies, said these instructions are to protect the insured and provide advantages for policyholders whose insurance records are free of claims. The new policy also promotes fair competition between insurance companies; ensure better insurance services at competitive prices; and more importantly, encourage everyone to drive more safely, and comply with traffic rules and regulations so that traffic-related deaths, physical injuries, disabilities and loss of properly can be greatly reduced.
“According to a recent study conducted by King Abdul Aziz University, traffic accidents caused 7,500 deaths, 68,000 injuries, and left 2,000 people handicapped with permanent disabilities. Additionally, the annual loss caused by car accidents is estimated to be SR18 billion. Unfortunately, most traffic accident victims are youths, and a firm stance is therefore required from everyone in society, including insurance companies,” Al-Eisa added.
He said the non-claimer discount is calculated based on the number of years a policyholder has not made a claim. Further, the discount could go up to 15 percent to be applied to the rates in force for insurance policies extending to one year with no claim being made, and it increases according to the number of years without a claim, going up to 30 percent for three years where no claim has been made.
The Insurance Executive Committee (IEC) has launched an awareness campaign “Safe Driving— Safety and Discounts.” In addition, the IEC has opened an official account on Twitter as a new and direct channel to communicate with customers of the insurance sector in Saudi Arabia @saudinsurance.
Al-Eisa also stressed the importance of all retail clients being aware of their rights, especially under the new law. He also asked them to access and understand the information available on this matter. In cases where a company fails to address and solve a filed complaint, promptly and within a reasonable timeframe, it is the client’s right under law to file a complaint with the consumer protection department at SAMA.
In case they suffer any breach of their rights, any unfair practices or any fraud, clients may exercise their rights under the regulations of SAMA by filing complaints with SAMA through any of the channels stated on the SAMA website.
“This is to ensure fairness, efficiency and transparency in all transactions for sectors that falls under the supervision of SAMA, and to ensure that the related statutory provisions are applied, since it is SAMA’s statuary obligation to protect all clients and stakeholders,” he said.