Driving cars is the number one hobby of most Saudi men. They are like toys for men of all ages, through which some of them display their enormous wealth, while some modify them to their personal liking. This has caused car insurance to become a highly successful business in the region. Everybody knows how much of a hassle dealing with insurance companies is, especially when it comes to refunds. However, the Saudi government has intervened in this matter and has ordered insurance companies to do something which they will not like.[irp]
The local media has reported that the clients of insurance companies are eligible to receive an amount of their policy value as a refund if they decide to sell off their cars. SAMA or the Saudi Arabian Monetary Authority has demanded all insurance companies to stop the delays in the cancellation of car insurance policies if the customer’s request as such while selling their cars. The Authority has their eyes on irregular practices which were being carried out by some insurance companies regarding this use. The insurance companies have a strict procedure which they must adhere to when handling any case, especially when policies are being canceled. Car owners have to make certain that the ownership has been transferred to the other person’s name, and the cancellation of their policy has been done through the head office of the company.
In accordance with the orders given out by SAMA, the companies have to return part of the value of the insurance policy through a check or through bank transfer. They have also advised all regulatory controllers of the companies to make sure that all the staff and the various agencies of the company follow these orders which have been given out by SAMA in this regard. SAMA has also stated that all the insurance companies must follow the Gregorian calendar for their insurance policy’s expiration and validity dates. For those of you who may not know what a Gregorian calendar is, it is the calendar that we all generally refer to as the western calendar, which comprises of the months from January to December.
Citizens of Saudi Arabia have rejoiced over the news that the insurance companies will now pay them back promptly on the cancellation of their policy. However, there are many who are skeptical of this announcement, as they are sure that the legal team of the insurance companies will surely find a loophole through which they will continue with the practice that SAMA has directed against.[irp]
Some people are also skeptical as the amount of refund has not been declared by SAMA and these people hope that such an announcement is made soon so that insurance companies cannot give a lower refund settlement. Insurance companies all over the world are known for their exemplary legal teams who can find out a loophole in any situation. However Saudi authorities do not take it lightly when their instructions are followed through.