RIYADH — Saudi insurance companies have announced their readiness to start with the new pricing procedures that provide a discount to policyholders who have no prior claims, by creating a unified database; which will enable insurance companies to inquire about the insurance history of claimants and this will facilitate the insured and reduce the time and effort that it takes to obtain certificates about claims which in the past meant dealing at times with multiple companies.
“These instructions aim to protect the insured, provide advantages for policy holders whose insurance records are free of claims, promote 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 death, physical injuries disabilities and loss of property can be greatly reduced,” said Adel Al-Eisa, official spokesman for insurance companies.
He added: “According to a recent study conducted by King Abdul Aziz University, traffic accidents caused 7,500 deaths, 68,000 injuries and leave 2,000 people handicapped with permanent disabilities. Additionally, the annual loss caused by car accidents is estimated at SR18 billion. Unfortunately, most of the traffic accidents victims are youths and a firm stance is therefore required from each and everyone in the society, including insurance companies.”
He confirmed that 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% 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% for three years where no claim has been made.
And to drive the awareness of the new instructions among all targeted stakeholders, IEC has launched an awareness campaign “Safe Driving #Safety_&_Discounts”, which has come in line with the launch of the IEC 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 to be aware of their rights especially under the new law. He asked them to access and understand the information available on this matter. In case a company fails to address and solve the complaints filed, promptly and within a reasonable time frame, it is the clients’ right under the law to file a complaint to the Consumer Protection Department, SAMA. In case they suffer any breach to their rights or any unfair practices or any fraud, clients may exercise their rights under the law and the regulations issued by SAMA by filing complaints to SAMA through any of the channels stated on 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. — SG
