RIYADH — The Saudi Authority for Accredited Valuers (TAQEEM) has emphasized the Kingdom’s plan to open the market for assessment of traffic accident costs by allowing specialized foreign centers to invest in the sector.
“The field is open to international centers for accident evaluation,” said the authority in a statement carried by Al-Eqtisadiah business daily on Tuesday. However, it said the foreign centers must meet the organization’s requirements.
“Investment in this field is not limited to local centers. On the other hand, we encourage investment by foreign evaluators,” the Arabic daily quoted TAQEEM’s spokesman Saleh Al-Zuwaid as saying.
On the basis of an agreement with Saudi Arabian Monetary Authority (SAMA), insurance companies have to deal with accredited accident valuers, which follow the conditions and standards set by TAQEEM, said Al-Zuwaid, director of public relations and information at the authority.
Last year the authority launched the accident evaluation system in Arouba, Riyadh, in cooperation with SAMA and the Traffic Department. SAMA, the country’s central bank, is the Kingdom’s insurance regulator.
“It is a complete electronic system, which has been linked with Najm Company, Valuers, insurance companies, workshops and spare parts suppliers,” Al-Zuwaid told Al-Eqtisadiah, adding that all transactions will be done electronically, protecting the interests and rights of all parties involved including insurance companies and beneficiaries.
Previously, whenever an accident occurs, the Traffic Department sets an estimate of costs. However, it does not allow vehicle owners to see the estimate and instead asks them to furnish three estimates of repair costs from three different car repair workshops. These estimates are then sent to the insurance company for a final decision.
“Some insurance companies have good connections with car workshop owners and they abuse this relationship by asking them to give a lower estimate of the actual damage,” said Muhammad Al-Khalifa, owner of a car showroom.
Faisal Al-Jassim, also a car showroom owner, said some car repair shop owners exaggerate the costs of repair deliberately so as to maximize their profits. The new system is likely to streamline the evaluation of the accident costs and remove existing shortcomings.
